ELIMINATING THE DISTORSIONS ON THE RENEWABLE ENERGY MARKET
ELIMINATING THE DISTORSIONS ON THE RENEWABLE ENERGY MARKET

Summary/Abstract: In Romania, energy transactions are carried out on two markets, the regulated and competitive market, the last one being divided into the wholesale market, retail market and green certificates market. Operation of the electricity market in normal conditions was a particular concern in recent years for Romania, who has made notable progress on achieving market liberalization. However, there are certain aspects which show market distortions particularly in renewable energy. To point out how these market distortions behave, the domain of energy in general and renewable energy in particular must point out that they are related to externalities and socio-economic costs connected to alternative technologies. A paradox in national renewable energy system is that Romania granted substantial subsidies to investors in this area, but most of the time, renewable energy projects do not have funding to be completed. In the following we will emphasize market distorsions in renewable energy in Romania related to the energy market and its specific externalities.

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