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Biomass and Biogas Power Markets in Romania and Bulgaria. Forecast for 2015

/21th October 2014, RENEWABLE MARKET WATCHTM/
Romania is suitable for the production of biomass and biogas energy throughout the whole year. Biomass carries the highest potential for green energy production in the country, amounting around 88.33 TWh per year. Romania will need an additional 20 GW electricity generation capacity by 2035 to meet the increasing electricity demand, de-carbonize its electricity sector, and replace ageing power generation facilities.

Romania's primary objective is to ensure compliance with the mandatory renewable energy target of Directive 2009/28/EC on the promotion of the use of energy from renewable sources by 2020. The country made crucial steps to reach renewable energy targets for 2020 set by its government in 2007, and at the national level, the Romanian energy strategy for the period of 2007-2020, as approved by the Government Decision № 1069/2007 establishes the level of national targets concerning the shares of electricity generated from renewable energy sources in the final consumption of electricity renewable energy generation.

At the beginning of 2014 Austrian company Egger finished construction works on the largest biomass power plant in Romania, which cost approximately 35 mln. EUR.

With the introduction of support mechanisms in the law in 2008 and the subsequent amendments in 2010, 2011 and 2012, Romanian biomass and biogas energy market will grow in next years according to Romania Biomass (incl. Biogas) Market: Outlook 2013 - 2018, especially assuming the sizeable reduction of green certificates for solar and wind projects since 1 January 2014.

In Bulgaria, the biggest potential for biogas production from primary and secondary agricultural residues is available in the regions North Eastern and South Central. Regarding solid waste and wastewaters, the biggest potential for biogas production is in South-Western part of the country where population density is higher.

One of the Bulgarian government's main goals is to increase the awareness of forest owners and energy producers regarding forest biomass's potential use as a diverse and economical renewable resource. Another point is to raise awareness of animal and agricultural farmers regarding possibilities to utilize residues from their activity through biogas installations. To promote energy production based on forest biomass and to ensure economic management of forests, it is important to have accurate information about the existing resource and the energy production enterprises using, or planning to use, these fuels. It is necessary to develop optimum logistics models.

First commercial farmer's biogas power plants with a capacity of 1 MW and 0.8 MW started operation in Bulgaria during 2013 and the first half of 2014. Another biogas power plants expected to follow in 2015. Nevertheless of political instability in Bulgaria, which started in 2013, feed-in tariff rates for biomass and biogas installations remain very attractive and expected to be without significant change for the next feed-in tariff period, which started from 1 July 2014. Some changes are expected during 2015 in Bulgarian renewable energy legislation, which will impose a certain amount (percentage) of animal manure to be used in biogas power plants.

More information about this promising market you may read here: Bulgaria Biomass Market: Outlook 2013 - 2018

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