Barriers and Opportunities for Biomass Utilization in Romania

In the last few years opportunities for biomass utilization have been developed as Romania has adopted the primary legislative framework for promoting renewable sources. The “Romanian Strategy for Renewable Energy Sources Utilisation” provides the necessary framework, general principles for developing action programme for renewable energy sources and sets targets for increasing reuse of waste, including wood and agricultural residues. Within the frame of this strategy, are provided measures to take, which, through turning into account the biomass energy potential, will reach an equivalent consumption of cca 3,347.3toe until 2010, with an average energy output of 97.5 toe (1134 GWh). Out of this, a consumption of 1,662 toe can be reached through utilisation of residues resulting from forest exploitations and fuel wood, sawdust and wood wastes from industrialisation. This objective can be materialised through establishment of new capacities or units in co-generation, based on biomass utilisation.

The biomass potential in Romania is expected also to increase over the period 2005-2010 through reforestation with other various tree species and short rotation forestry.

The National Institute of Wood, is responsible, under the coordination of Ministry of Economy and Trade, and the Ministry of Environment and Water Management for the elaboration of feasibility studies and of execution projects of pilot plants and demonstration units and thermal plants. Until 2010, the Government will allocate to these actions, 100 million Euro, being necessary also foreign financing sources of cca. 140 million Euro.

Specific barriers to the implementation of biomass projects in Romania include:

Lack of regulations for tax incentives for utilisation of biomass wastes;
Romania has no energy or carbon taxes on any type of fuel or energy;
Lack of financial sources for production and utilisation of briquettes and pellets.

The legislation in this field was completed with the GD 1892/2004 regarding the establishment of promoting system for power production using renewable energy sources. The Decision is applicable to electricity production using renewable sources (including biomass) in power stations with an installed power up to 10 MW, put into operation or modernised since 2004. This government decision provides the application of compulsory rates of power input, combined with the trading system of green certificates (document which proves that a quantity of 1 MWh power was produced from renewable energy sources).

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Barriers and Opportunities for Biomass Utilization in Romania