Recent developments in promoting

EE &RES in Romania

Primary Energy Resources, in 2006

The situation of ENERGY SECTOR in Romania The largest energy consumer sectors are:

Industry 40 % Residential; 31 % Transport and communications 17 %

Source: National Institute of Statistics – “Romanian Statistical Yearbook 2007

40 % of energy consumption is in industrial sector

Source: National Institute of Statistics – “Romanian Statistical Yearbook 2007

Source: National Institute of Statistics – “Romanian Statistical Yearbook 2007

31 % of energy consumption is in residential sector

National Thermal Rehabilitation Plan

- 34 % state budget- 33 % local budget- 33 % budget of owners associations

ARCEARCE - - Energy Efficiency

1.1 Energy managers and auditors certification program

1.2 Market survey activity

1.3 Financial incentives for energy efficiency investments

1.4 International cooperation :

1.4.1 Energy Intelligent Europe

1.4.2 Long Term Agreements

1.4.3 Third Party Financing

1.4.4 International partnership

1.4.5 Communication/information

1.1 Energy managers and auditors certification program

1.2 Market survey activity in 2007

a. Energy LabelingThe total number of economic agents controlled on energy labeling was 1090 out of which 435 complying economic agents from legal provisions, 257 warnings and 178 fines were applied.

b. Verification of compliance with the law no.199/2000Control actions for a total number of 744 economic agents, energy consumers, on the grounds of Law no. 199/2000 regarding efficient use of energy, republished, on consumers categories: 365 economic agents with energy consumption> 1000 toe/year, 279 economic agents with energy consumption between 200 -1000 toe/year,49 public building with an useful area >1000sqm,19 authorities of the local public administration from localities with>20000 citizens, 17 companies that own > 25 vehicles and 15 economic agents with activities of generation, transport and distribution of energy

1.3 Financial incentives for energy efficiency investments

The National program for the reduction of energy costs for the population, by increasing energy efficiency and using renewable sources of energy- in 2007

Through its territorial subsidiaries, ARCE has drafted a list of proposals for co - financing of investment objectives from the state budget, and from this list were co - financed 37 projects and total amount in financial incentives was 11 mil euros .

Energy efficiency investments co-financed from the state budget

in 2003 - 3 million Euros in 2004 - 6 million Eurosin 2006 - 13.6 million Euros in 2007 - 11 million Euros

1.4 International Cooperation

• European Programs• Intelligent Energy Europe – 8 projects (REMODECE, CEECAP, NewGreenlight,

PromoScene, EL-Tertiary, Ex Bess, OdyseeMure, Selina)

• Bilateral cooperation• Protocol for cooperation between ARCE and ADEME ( France)• Long Term Agreement Project (LTA) with SenterNovem (Netherlands)• Third Party Financing (TPF) Project with Energy Agency from Berlin

• International partnership• On February 2006 Romanian Agency for Energy Conservation, became member on

European Energy Network (EnR).• On 27th October 2006, Romania signed the adherence documents on The Renewable

Energy and Energy Efficiency Partnership (REEEP). Therefore, Romania become the 33-th member state of The Renewable Energy and Energy Efficiency Partnership,

EU ENERGY POLICY TARGETSEU ENERGY POLICY TARGETS

• DDirectiveirective 2006/32/E 2006/32/ECC (ESD) (ESD)

Energy efficiency increase in energy end-use sectors, by:Energy efficiency increase in energy end-use sectors, by:

providing the indicative targets providing the indicative targets as well as mechanisms, incentives and institutional, financial and legal framework necessary for the promotion of efficient energy end-use; creacreating the conditions for the development and promotion of the ting the conditions for the development and promotion of the market for energy services

PurposePurpose

• Energy savingsEnergy savings of 9% for the end of the period 2008-2016, respectively 1% per year, of the annual average of the final energy consumption in the last 5 years (period 2001-2005) (the companies under emission trading scheme are excluded)

TargetTarget

National Energy Efficiency Action PlansDeadlines :Deadlines : 30 30thth JuneJune 2007 2007; ; 3030thth JuneJune 2011 2011; ; 3030thth JuneJune 2014 2014

• Integrated Energy and Climate Change Package, January 2007Integrated Energy and Climate Change Package, January 2007

• Reducing GHG by 20% by 2020 comparatively with 1990;

• Energy savings of 20% of the EU total primary energy supply by 2020;

• Share of the renewable energy of 20% in overall energy mix by 2020,

and a minimum target of 10% for biofuels.

TargetTarget

Legislative proposals:Legislative proposals:

• Modifying the ETS Directive (2003/87/EC)

• Directive proposal on the use of the renewable energy sources

• Proposal for establishing the GHG targets for the non-ETS sectors

Proposal for RomaniaProposal for Romania::

+19%+19% Target on GHG emission for non-ETS sectorsTarget on GHG emission for non-ETS sectors

-21% -21% Target on GHG emission for ETS sectorsTarget on GHG emission for ETS sectors24%24% Share of RES in final energy consumptionShare of RES in final energy consumption

Renewable Energy Source used to produce Electrical power

WIND ENERGY

The hydro power is the most important RES in

Romania

SOLAR ENERGY that can be transformed in electrical power in PV

- Valahia University (10 kW)

-Polytechnic University of Bucharest (30 kW)

ROMANIAN SOLAR RADIATION MAP

Renewable Energy Source used to produce Thermal Energy

Vatra Dornei12 MW

Întorsura Buzăului - 7 MW

Gheorgheni6 MW

Vlăhiţa-6 MW

Huedin- -4 MW

Project “Sawdust 2000”

SOLAR ENERGY that can be transformed in thermal energy

Mangalia

Giurgiu

Peparation of hot sanitary water to a power plant in Brasov through solar

collectorThe National program for the reduction of energy costs for the population, by increasing energy efficiency and using renewable sources of energy

GEOTHERMAL POTENTIAL IN ROMANIA

At Ministry of Administration and Interior there isAt Ministry of Administration and Interior there is PILOT PROGRAM : PILOT PROGRAM : 10 schools will be equipped with heat pump that replace stoves and 10 schools will be equipped with heat pump that replace stoves and decrease pollution.decrease pollution.

Applications:

– Oradea

– Calimanesti – Caciulata

– North Bucharest (Otopeni)

Financial schemes to support energy efficiency and renewable projects

• The promotion system: the obligatory quota combined to the green certificates transaction

• Environmental Fund is a fund supplied by penalties for pollution and state budget. Only renewable projects could be financed from this fund, not energy efficiency

• The National program for the reduction of energy costs for the population, by increasing energy efficiency and using renewable sources of energy

• Sectoral Operational ProgramPriority axis IV - "Increasing energy efficiency and security of supply in the context

of combating climate change"4.1. Energy efficiency and sustainable (improving energy efficiency and

sustainability of the energy system4.2. use of renewable energy to produce "green“ energy

• FREE (Romanian Energy Efficiency Fund) is a revolving fund established by World Bank.• ESCO in Romania • Long Term Agreement (LTA)

Contact us:

THANK YOU FOR YOUR ATTENTION !

ARCE HEADQUARTERSARCE HEADQUARTERS

Tel.: +40213145929Tel.: +40213145929

Fax: +40213123197Fax: +40213123197

16 Boulevard Nicolae Balcescu, 16 Boulevard Nicolae Balcescu, 1st district1st district RO 010052 Bucharest 37RO 010052 Bucharest 37 www.arceonline.rowww.arceonline.ro

We have to do something about our planet !