Question: Is it a good time to start investing in a renewable energy project in Romania?
Answer: The domain of the Environment and Sustainable Development offers substantial business opportunities in Romania and, in recent years, our country made great achievements in this area. Park projects are underway especially in Dobrogea which is the most prolific region for such investments. As this field becomes increasingly exploited, possible investors prefere to back up their investment plans by opting for professional legal assistance and representation. However, due to the fact that this represents a relatively new domain, there is no standardized due diligence procedure for renewable energy technologies and the Romanian renewable energy law still leaves some questions unanswered. Many business owners and consultants find themselves in a situation where functional alternatives and spontaneous solutions prove superior to exact legal provisions. The legal due diligence in Romania continues to evolve towards acquiring a perfected functional role, but for the moment, guidelines for legal and financial aspects in terms of renewable energy technologies are proving of great help.
Question: What are the best green projects to invest in?
Answer: Companies are mostly seeking to invest in Photovoltaic and Wind Farms in Romania and you need to understand the legal circumstances in order to identify best strategies to ensure a successful investment. Please read our guidelines for more information.
According to Romanian renewable energy law, the first stage in approaching this type of project refers to developing an optimal regulatory framework. It is a complex step, which initially requires a building permit always needed for these types of projects involving wind and solar farms or other facilities for the production of energy from renewable sources. This permit is granted if the ownership right over the land is proved either through a land ownership certificate or through a right of superficies agreement.
The next step consists of obtaining an operation license. Prior to the commencement of the commercial operations an operation license must be obtained and the applicant must submit certain forms. The application should contain details regarding the electricity production capacity, the organizational chart of the company and also a certificate attesting personnel qualification. According to legal provisions, in addition to having on file the above documents, the following should be added as well: the quality management manual and the business plan for the next two years. For developing a solid approach involving wind farms or Romanian photovoltaic projects, it is also required a set of documents providing company details such as: name, address, shareholders, articles of association etc. The operation license is usually issued in 30 days and it is valid for 25 years.
Obtaining an environmental authorization is necessary in Romania and this document is issued by the environmental protection agency. The authorization determines the environmental conditions and parameters for the functioning of the objective.
Answer: Indeed, as in any business, there are aspects that may delay or alter the investment process. Issues that might postpone the investment process include litigations concerning the lands, the legal status of archaeological heritage and the absence of an urbanism certificate or wind assessment. Projects involving photovoltaic and wind farms Romania have been qualified as potentially significant for the impact on the environment. Therefore authorities must decide whether or not a park will have a negative effect on the natural environment, using a specific set of criteria (e.g. installed capacity requirements, air, water and noise pollution parameters). Every aspect needs to be clarified in order for the regulatory framework to be completed.
The business community interested to invest in environmental development area enjoys benefits from various programmes co-financed by the EU such as the European Regional Development Fund or the European Agricultural Fund for Rural Development. As an alternative, funds can also be accessed through the Romanian Programme for renewable energy. Financing is granted for up to 50% of the total eligible costs for investments such as Romanian photovoltaic projects. In a country with a constant development in the wind and solar energy market, investors are welcome to grow and evolve.
Our professional lawyers are able to provide all necessary details regarding this topic and they can always deliver best possible options. The Romanian environmental due diligence team at Darie & Manea Law Firm will strictly examine your project outline suggesting financially advantageous alternatives and successfully securing your investment. Please call us now for free case consultation!