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Energy company exempted from taxes
The company to administer the future Tarnita-Lapusesti hydropower plant, a project of 1 billion euro will be exempted from several taxes and will be declared unit of strategic national interest.The company to operate the production unit and storage of electricity at Tarnita, Cluj county, will not pay the co-generation tax, green certificates, energy transportation, the price of system service, according to an emergency order elaborated by the Department for Energy.
The company will also be exempted from the payment of water used in producing electricity. Hidroelectica, the largest energy producer in Romania pays 80 million euro yearly for the water used in the production process.At the same time, the final or temporary use of land from the farming circuit and national forest fund will be exempted from the payment of taxes.
“In conditions in which hundreds of hectares of land are needed to build a hydropower plant and taxes could exceed 100,000 euro/ha, taxing is a barrier for the decision to promote such public utility investments,” says the basic note.
Tarnita-Lapusesti project will stretch on 205 ha and the company building the plant will be exempted from the payment of 10.5 million euro as tax for getting land out of farming circuit and forest fund.
The note points out that Romania is the only EU country that does not have a hydropower plant with accumulation by pumping, although it has very favorable natural conditions for the construction and operation of such plants. Now there are 170 pumping plants in EU, with an installed power of 45,000 MW, In comparison, Romania has energy producing units of 20,000 MW.60 other pumping plants are in various construction stages. Pumping plants are needed for the development of the European energy sector, to the integration of electric energy producing units based on eolian and solar energy.
Hidro Tarnita company announced a week ago that several investors are interested in the project evaluated at over 1 billion euro. Electrica and Hunedoara Energy Complex are shareholders at Hidro Tarnita, each with 50%.The plant will be built in 5-7 years at a distance of 30 km from Cluj Napoca on the valley of Somesul Cald river.
The list of pre-qualified investors will be published on November 14.