state support for promotion of electrical energy produced in high efficiency cogeneration in romania

Romania accumulated a useful experience in supporting high efficient cogeneration through a bonus type scheme. Spreading this experience to other countries that can choose a similar support scheme could lead to important savings and better results in developing this efficient tool. This state aid is operational, targeted to new investments stimulation for cogeneration technologies and replacement or existing plants rehabilitation. Present paper focuses on the results of support scheme after five years of its application: increase of number of producers who benefit of this aid, raising of general efficiency of high efficient cogeneration, important savings of primary energy and CO2 emissions avoided. On the other hand, use of this scheme showed a number of problems (to which this paper proposes adequate solutions) on institutional/administrative, investition, technical, economical-financial and social frameworks that influences beneficiaries and/or financiers of state aid.