GAP-JOURNAL 2012/13 - AFA

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level indicated in the NREAP. The wind energy sector in Romania isone of the fastest
growing inthe EU and the country is about to become one ofthe leading wind power
users in Europe. Romania’s wind energy sector is benefiting from high wind speeds
along the Carpathian Mountains and the Black Sea coast, leading toawind energy
potential estimate of 14 GW. The support mechanism for renewable energy in Romania
introduced in 2005 is based ongreen certificates. Changes were made in 2008 but did
not come into force until 2012. Continuous uncertainty regarding possible revisions to
the support scheme isnegatively affecting investors’ sentiment. The main barrier to
continued development ofwind energy inRomania, however, is the limited capacity of
the country’s grid infrastructure. Also, the legislative framework for wind projects is
characterized byunpredictability asthere is room for interpretation over issues such as
the applicability ofproperty tax or treatment of assets for depreciation purposes. However,
the emergence of local Romanian companies along the supply chain is an indication
for the overall positive development ofthe country’s wind sector. (EWEA 2013:
58-67)
Bulgaria
Power production inBulgaria ismainly sourced from conventional thermal fuels (54%
of total production in2011), nuclear energy (32%) and hydro power (12%). The contribution
ofrenewable energy sources other than hydro power to the country’s power production
was only 1.8% in 2011 (compared to 20.6% as required bythe NREAP by
2020) but is expected to increase substantially. In 2011, Bulgaria’s wind energy capacity
was 4.9% (607 MW) ofthe country’s total power generation capacity. According to
the Association ofProducers of Ecological Energy (APEE), Bulgaria’s substantial wind
potential, same as in Romania, owed to thecountry’s location atthe Black Seacoast and
its mountainous regions, could trigger significant private sector investments by2020 to
reach awind power capacity of over 3GW. The NREAP targets 1.4 GW by 2020.
However, recently introduced reductions in feed-in tariffs for renewable energy have
discouraged investors. Particularly, the just mentioned unstable support mechanism isa
significant challenge going forward for the Bulgarian wind power market. The limitation
ofthe grid infrastructure is also amajor barrier to investments, which isfurther
exacerbated by the absence ofaregulatory framework tostimulate grid development for
renewable energy integration. Renewable energy producers are not even entitled to
compensation for the slow development delaying their connection. Regarding the regulatory
framework, there is alack ofcoordination between administrations. However,