Three renewable energy industry associations are criticizing the Emergency Resolution on some measures related to the exercise of the state’s public and private property rights, arguing that it distorts competition in the energy market. They argue that private investors are at a disadvantage compared to public investors because they cannot build solar and wind farms on areas larger than 50 hectares, and this is only allowed for projects declared “of national interest”. In addition, they do not have access to ADS land like state-owned companies.

These three organizations are the “Romanian Photoelectric Industry Association” (RPIA), the Romanian Wind Energy Association (RWEA) and the Employers’ Organization of Renewable Energy Producers in Romania (PATRES). These associations are not the first to complain about “the non-competitive nature of the direct concession of lands under the management of the State Domains Agency (ADS) to state portfolio companies, which is contrary to national and European legislation.”

The new GEO “unreasonably favors companies whose majority shareholder is the state”

“In the context where from 2022 private investors can only develop projects in areas of less than 50 hectares (maximum 42 MW/34 MW·ac) based on the erroneous interpretation of the land fund law by the Ministry of Agriculture and Rural Development (MADR), Implementation through the new the emergency order to derogate from this restriction only for projects declared “of national interest” unjustifiably favors companies whose majority shareholder is the state,” the three associations said in a press release.

According to them, this measure is deeply anti-competitive, unconstitutional and discriminatory for operators working in the renewable energy market.

The three organizations say the government has not provided an explanation why landlords and private investors are not treated equally. In the sub-category of PV projects, developed capacity cannot be differentiated according to the majority equity owner, so selective land access and statutory exemptions are not justified, the statement also said.

ODE asks the Government to organize auctions for state lands

RPIA, RWEA and PATRES argue that this GEO sends a strong negative signal to investors who are already confused by the instability of the regulatory framework, which significantly affects the fulfillment of Romania’s climate neutrality goals.

Renewable energy industry organizations require that such measures adhere to the principle of transparency and fair competition by organizing public auctions whenever public or private land rights are transferred, or at least. Direct negotiations between ADS and certain selected companies cannot ensure such fair conditions of competition, the statement added.

RPIA, RWEA, PATRES state that they are not against the implementation of such projects, but demand conditions of fair competition for all developers of renewable energy production capacity, which can be achieved by removing the barrier of 50 hectares for all projects, regardless of whether in the state whether the land is privately owned, and by inviting all interested parties to participate in a transparent and competitive process of allocating land plots in state ownership.

SourcePhoto: Frank Gertner | Dreamstime.com

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