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Cleaner air raises the costs of electricity

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The price of electricity produced by coal based power generators, one of the most noxious combustibles, will double starting with 2013 if it will be necessary for the power generating companies to acquire all the certificates for air pollution, declared Gabriel Baleanu, expert from the Economics and Finances Ministry.

This will lead to the increase of the price paid by consumers due to the fact that Romania’s strategy concerning electricity is based mainly on coal based electricity. Last year, 43% of the national production of electricity was coal based, 35.5% of the used coal being lignite. The first results of using large quantities of noxious combustibles have already been felt in Romania. In Julie, the price of electricity increased with 5.3% as a result of the need to purchase certificates for air pollution, however starting with 1st January, 2008, electricity will get even more expensive, one of the causes being the certificates as well as the increasing price of coal and natural gases.

The gradual elimination of free certificates
Gabriel Baleanu stated: “The lignite found here, in Romania, has little caloric power, in comparison with other European states, thus a great quantity is necessary to be used. What is more, the power plants from Romania that run on coal have an efficiency of 33% which means there is a need of structural modification of the system from the technological point of view so that efficiency level will increase over 45%.”
According to current strategies, the power plants require investments of 2.6 billion Euros before 2017, so that environmental issues are dealt with. The European Commission wants that starting with 2013 companies would no longer receive anymore free certificates, however Romania, along with other states, believe that rushing this process would result in a great increase of prices.

Source: Evenimentul Zilei

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2 Responses

  1. Fine Food

    thanks for that

  2. Cornelius Similton

    Great articles & Great a site. 36

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