Innovative business in the field of solar energy in Baia Sprie – CEPRONEF Energo Invest

Renewability - Business Model in Circular Economy Maramures County - Romania

17th of September, 2020 – Online meeting, REDUCES project Innovative business in the field of solar energy – CEPRONEF Renewability Maramures County - Romania

CEPRONEF Energo Invest, a Romanian company with over 30 years of experince in industrial design, offers integrated services in architecture, engineering and consultancy in renewable energy, industry, environment, energy management. Location: Baia Mare, Maramures County - Romania

http://www.cepronef.com/

2 Innovative business in the field of solar energy – CEPRONEF Renewability Maramures County - Romania

Renewability - Business Models in Circular Economy Good practice in Maramures - Romania: CEPRONEF - Innovative business in the field of solar energy in Baia Sprie: The realization of a unit for electricity production from solar source and its capitalization on the profile market benefiting from the Green Certifiers mechanism.

Timescale: 2014-2015, ongoing

Contact: CEPRONEF Baia Mare Responsible person: Laura Cudrici E-mail: [email protected] Maramures County – Baia Mare Romania – North West Region http://www.cepronef.com/ http://www.spriatechnology.ro/ 3 Innovative business in the field of solar energy – CEPRONEF Renewability Maramures County - Romania

- What is the problem addressed and the context which triggered the introduction of the practice?

 The business capitalizes an opportunity given by the general context of supporting the production of electricity from solar source;  Baia Sprie City Hall initiated the photovoltaic park project, a 25 years investment from local budget, accessing the Green Certificates scheme both the effort to limit greenhouse gas emissions and an attractive transfer of economic effects for the local community.

Objectives:  Making a sustainable investment;  Economic capitalization of a land available but disadvantageous for agriculture or construction;  Ensuring safe and predictable long-term income. 4 Innovative business in the field of solar energy – CEPRONEF Renewability Maramures County - Romania

- How does the practice reach its objectives and how it is implemented?  The investment was made respecting the legislation regarding the Green Certificates scheme.

 The administration and operation of the production capacity is done in adequate technical and economic conditions, ensuring the continuity in operation.

 Capitalization of electricity & Green Certificates (GC) in order to maximize revenues by concluding specific contractual agreements obtaining predictable revenues with an extremely small margin of error generated only by the variation of insolation.

5 Innovative business in the field of solar energy – CEPRONEF Renewability Maramures County - Romania

- How does the practice reach its objectives and how it is implemented?  Specialists in photovoltaic energy, experts in energy market, very specific and advanced regulated were attracted in this project.

 The beneficiaries of this model are all those who took note of the possibility to invest in this field and to find that properly grounded productive performance can lead to excellent results in medium and long term, in the benefit of businesses and local communities.

6 Innovative business in the field of solar energy – CEPRONEF Renewability Maramures County - Romania

Resources needed

 Baia Sprie City Hall invested from the local budget 200,000 euros for a capacity of 224 kW of installed power and set up a dedicated company, being the sole shareholder.

 The administration of the business is performed by a person who also ensures the supervision of the effective functioning.

7 Innovative business in the field of solar energy – CEPRONEF Renewability Maramures County - Romania

Evidence of success:  The business opportunity was GC scheme supporting energy production from RES.  To the selling price of energy produced & delivered in grid is added for 15 years the equivalent of 90 euros/ MWh.  The recovery of the investment is made in 12 years and starting with the year 13 and up to the year 15 inclusive, the cumulated revenues from the electricity price and GC are high, the operational costs remaining the same.  The investment’s life is 25 years, so it will generate income for another 10 years;

8 Innovative business in the field of solar energy – CEPRONEF Renewability Maramures County - Romania

Challenges encountered:  The biggest challenge - overcoming mentalities based mainly on ignorance;

 Investing in an unknown field in pioneering conditions was inherently risky;

 The technical substantiations offered by specialists and thorough communication made it possible to overcome the resistances generated by distrust.

9 Innovative business in the field of solar energy – CEPRONEF Renewability Maramures County - Romania

Factors contributing to success:  The existence of a favorable legislation, respectively the creation of a system of measures in the field of promoting the production of electricity from renewable energy sources.

 The decision of Baia Sprie City Hall (mayor, local counselors, public officers) to create an investment in a relatively new field in Romania, a photovoltaic park for obtaining clean energy, which contributes to reducing greenhouse gas emissions and reduces dependence on fossil fuels.

10 Innovative business in the field of solar energy – CEPRONEF Renewability Maramures County - Romania

This practice - an inspiration for others  The business model is undoubtedly a success because all the predictions in the project phase have been achieved.

 The model regarding the production plan statistically related to the number of hours of insolation and its intensity proved to be absolutely correct.

 The revenue forecasts were met, on the one hand, because the applicant cautiously resorted to secure mechanisms for capitalizing on Green Certificates and the electricity produced, avoiding speculative approaches with high risks. 11 Innovative business in the field of solar energy – CEPRONEF Renewability Maramures County - Romania

This practice - an inspiration for others  It was and is a wise attitude considering that it is based on public money.

 The success of this business is a good example, which could be taken as an idea of producing electricity from alternative sources (the sun being an inexhaustible source of energy!), especially in the current context of reducing conventional sources and excessive pollution of the planet.

12 Thank you!

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