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ArcelorMittal Galati, worried about the negative effects of incentives for renewable energy


ArcelorMittal Galati has recently reaffirmed its concern on the negative effects generated by the support scheme granted to renewable energy projects developed in Romania. Dorian Dumitrescu, spokesperson of the company, has stated that the current system – which is not aligned to the other EU Member States – does not consider the impact on the main energy consumers and could push them beyond the sustainability limit. ArcelorMittal Galati officials stated in a communique: “We are supporters of renewable energy, but these projects don’t have a contribution similar with that of large electricity consumers through the support schemes. These renewable energy producers are not competitive enough to support themselves exclusively from the revenues obtained on the electricity exchange. Moreover, the necessary investment level, as well as the limited operation period (one third of a year) force the countries to implement support mechanisms ensuring their profitability. In Romania, a wind plant receives two green certificates (worth 2 x 58 EUR) for each MWh generated. Besides, it also collects the electricity sale price, which is about EUR 40/MWh on the spot market. The support schemes are mainly funded by the large industrial producers in Romania, but also by other consumers, which are not strongly affected by this type of support. Such a support scheme is not sustainable and threatens the continuity of the industrial activity in Romania. Moreover, because the renewable energy production is dependent on external factors (wind, sun), additional, backup sources are necessary to guarantee the safe and continuous electricity supply in the entire country. It’s necessary to make an assessment of investments and of related additional costs in relation to their reduced operation time.” The statement made by the representatives of ArcelorMittal came at the same time when part of the unionists of the steel mill were in Tulcea, attending the meeting with Deputy Prime Minister Liviu Dragnea. Them, with other unionists of the heavy industry from Constanta and Olt counties, have asked Dragnea to reduce additional taxes currently applied to the electricity cost, as they suffocate the large energy consumers, respectively the steel and aluminum producers.