Romania’s government-run Green House program, designed to encourage the use of home heating and energy systems based on renewable energy, will be modified this year and will finance only energy storage systems, not the installation of photovoltaic panels, according to environment minister Diana Buzoianu.
In an interview for Euronews Romania on Monday, August 10, the official explained that the current problem of the Romanian energy system stems from the fact that in recent years, significant funds have been allocated for energy production through photovoltaic panels, while investments in storage batteries have been almost non-existent.
“Things got stuck because, over time, exponentially large amounts of money were allocated for panels and almost EUR 0 for batteries. We will change that,” she said.
As such, this year, the program will exclusively fund batteries that allow for the storage of energy.
Buzoianu estimated that after the completion of the project, the capacity installed through the program will allow the storage of at least 200 MWh. The energy accumulated in the batteries is expected to be used during peak consumption intervals, especially in the evening, when photovoltaic production decreases, and Romania ends up importing energy.
The official also criticized the system based on the “first come, first served” principle, in which beneficiaries have to access the platform within a very short time in order to obtain funding. Instead, the authorities want to introduce additional criteria for competitiveness so that funding is granted to beneficiaries who present the most competitive offers.
In the case of batteries, one of the criteria being considered is co-financing. “How much you are willing to co-finance; the more you are willing to co-finance, the more priority you will have,” the minister explained.
Romania is currently experiencing an energy crisis driven mainly by the severe drought and the sharp reduction in the Danube’s flow, which has reached its lowest level in the last 40 years, reducing energy generation at Nuclearelectrica (BVB: SNN) and Hidroelectrica (BVB: H20). The drought is set to continue, with no short-term improvement, according to the most recent forecasts.
(Photo source: Hrishchenko Oleksandr|Dreamstime.com)
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