Recently, the term “prosumer” has become a buzzword. The temptation to become a prosumer is growing in the hope of becoming energy independent. The term “prosumer” is a combination of the words “producer” and “consumer” and refers to individuals or organizations that, instead of being only passive consumers of goods and services, also become active producers.

What steps must be taken to enter the role of an energy consumer, what advantages the state offers to those who want to “sell” excess energy in the system, and how residential and non-residential buildings, through administrators, respectively, tenant associations, as legal entities , they can become prosumers, which is discussed in the next article.

In today’s society, many people or organizations do not fit neatly into the traditional roles of producer or consumer, but can perform both functions simultaneously or at different times. To better understand, a company that installs solar panels, wind turbines or any other form of renewable energy generation technology on its premises for its own consumption can also “feed” the surplus into the electricity grid for use by other customers. Practically, it also turns into a producer of electricity.

Entering this sphere, as an energy consumer, a legal entity can “calculate” both advantages and disadvantages.

If we talk about the advantages, we can attribute to cost savings (reduction of energy bills, direct contribution to amortization of investments), energy independence from traditional energy suppliers and, above all, from the instability of their tariffs, surplus income – through the sale of excess energy, reputation and corporate responsibility, which can attract customers and investors who value sustainability, incentives and subsidies (tax reductions, access to additional financing).

On the other hand, from the point of view of disadvantages, the investor must take into account a number of factors: the need for initial investment (with corresponding capital or opportunity costs), the variability of production based on periodic renewable sources (often not coordinated). with the company’s consumption needs), maintenance and energy management efforts (not only in production but also in consumption), strict regulations and bureaucracy (notifications, permits, delays, lack of predictability), additional space is required.

A careful cost-benefit analysis can help a company decide if this is the right direction for its business, or if the time is right to start such an investment.

An example of this would be that for an agricultural company that chooses to become a consumer, it may face a number of consequences specific to the agricultural sector, which is different from other industries. Thus, as an additional positive effect, the farm will have the self-sufficiency required during drought or other crisis situations. It also plans the optimal use of its own resources, such as vacant space (useful for placing photovoltaic panels or wind turbines), agricultural waste that can be converted into biogas or biomass with calorific properties.

At the same time, an idea that can take shape is an idea related to the energy efficiency of residential and non-residential buildings, also from the point of view of the consumer as a legal entity. Here we are talking about administrators or developers, and about the association of tenants. In other words, such properties can become real energy hubs with the installation of storage tanks, which are later used to “infuse” energy into the system and, implicitly, to offset bills. But investment is needed to achieve this goal.

“Detached houses are part of the existing and energy-inefficient buildings, which definitely need a thorough renovation to be able to achieve our long-term renewal, energy efficiency and greenhouse gas reduction strategy goals. The first step towards the energy efficiency of buildings, as a member state, is the commitment to intervene in public buildings undergoing deep renovation programs. On the other hand, the second step regarding residential buildings: of course you have to find an incentive to renovate above the existing minimum legal requirements. Unfortunately, in Romania, this financial incentive was missing, or it was inadequate to reality, or because at a certain moment it was greater in the framework of non-refundable financing, and at the moment when co-financing was needed, the beneficiary lost his interest,” explained Mihai Moya, president of the Association for Promotion of Energy Efficiency in Buildings – ROENEF.

In this context, the specialist noted that in order to obtain a significant flow of energy from renewable sources, investments in the modernization of the National Energy System are needed.

“Of course, the repair of these buildings is a great need to achieve the goals. It is quite realistic to have integrated solutions to reduce energy consumption requirements and then come up with renewable sources to cover a significant portion of the consumption. On the other hand, I am convinced that there is a need for investment in the modernization of the national energy system, and the institutions at the central level, which are responsible for the infrastructure, monitor this need and have the leverage and financial instruments to attract funds and receive these investments,” Moya said. .

The Observatory’s report on the EU’s building stock shows that two-thirds of the 43.6 million single-family and apartment buildings in Central and Eastern Europe (CEE) are over 30 years old and are mostly energy inefficient.

What are the stages? should coverand become a prosumer

To get prosumer quality, you need to go through a number of necessary steps:

The first step concerns the installation of a photovoltaic panel system with an installed capacity of no more than 400 kW/place of consumption, after which a connection request is submitted to the energy distribution company.

Later, after the submitted request, the distributor determines the connection solution according to the characteristics of the room where the system can be installed, and the connection contract is signed.

The project continues with the actual installation of the PV system and its commissioning by specialized personnel, then the user’s installation file is obtained, and the distributor issues a grid connection certificate.

Finally, a contract for the purchase and sale of produced and delivered electricity is initialed between the consumer and the electricity supplier.

How Romania encourages investment in renewable energy

The authorities in this sector have considered providing bonus support to consumers, and according to the Romanian Energy Strategy 2020-2030, with a perspective to 2050, producers of electricity and thermal energy in cogeneration can benefit from the scheme in the form of a bonus for a maximum of 11 consecutive years , not exceeding 2023. The amount of the bonus is set by the National Energy Regulatory Authority (ANRE).

Another initiative aimed at encouraging the installation of photovoltaic panels, as well as the idea of ​​becoming a consumer, is the “Photoelectric Greenhouses” program run by the Environment Fund Administration (AFM), which this year has 17.5 million lei in funding, a first for cult units. Thanks to this program, beneficiaries receive financing of up to 90% of the total amount of eligible costs, within a limit of 20,000 lei, for the installation of photovoltaic panel systems with a capacity of at least 3 kW.

Also, the Program for improving energy efficiency in public buildings, which can be used to modernize educational institutions, nurseries, kindergartens, high schools and lyceums, has a budget of approximately 451 million lei in 2023.

Returning to the role of the consumer in the energy market, the manual developed by ANRE shows that certified producers who have installations for the production of electricity from renewable energy sources (E-SRE) with an installed electrical capacity of no more than 400 kW at the point of consumption can receive compensation or regularization by which they can sell electricity generated and delivered in the electricity grids to electricity suppliers with whom they have signed electricity supply contracts.

However, in a situation where consumers, both legal and natural persons, do not choose a quantitative compensation mechanism or financial regularity, they have the possibility to commercialize the electricity produced and delivered to the electricity network, at least through direct negotiations. bilateral operations.

By the end of 2023, ANRE estimates that there will be around 140,000 prosumers in Romania, given that more than 77,600 prosumers were registered in June this year, which is a significant increase compared to January 2022, when the number was almost 14,000.

Data source:

* Energy strategy of Romania – section on energy efficiency

* National energy regulatory body

* Administration of the Environment Fund

* Prosumer’s Guide

* Association for promoting the energy efficiency of buildings – ROENEF

Article from the ESG for Smart Business series, supported by BCR and hosted by the ECOTECA Association.