Romania Caps Green Energy Quota To Stave Off Threat To Industry

  • Date: 28/03/14
  • Reuters

Romania’s government capped the amount of renewable energy that large industrial consumers must buy this year in a move to help offset their high energy costs and stave off the threat of job cuts ahead of elections later this year.

The cap is part of a wider set of measures the leftist government plans to enforce this year to help industrial consumers, who have repeatedly warned that high power and gas prices could lead to production cuts, layoffs and even plant relocations.

However, the measure also boosts uncertainty for private investors in the electricity and gas sectors, which could scare off badly needed investment. The government has already lowered its support scheme for renewable energy projects.

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