Romanian Fund for Energy Efficiency (FREE)
Policy measure

In an attempt to get private companies in the industrial sector and other energy consumers to adopt and use energy efficient technologies, the Government of Romania has, according to NEEAP (2006), established the Romanian Fund for Energy Efficiency (FREE) to offer financing for energy efficiency investments under commercial conditions. The aim is the improvement of energy efficiency through financial support for projects to reduce energy demand.

Implementation

FREE provides subsidies from the national budget for projects designed to increase energy efficiency. The financial instruments are a combination of subsidies, energy efficiency measures and other combinations of sub-categories of energy efficiency funds and trusts on a national level, targeting industrial and public sectors (NEEAP, 2006).

Challenges
No identified challenges.
Outcomes

According to NEEAP (2006), FREE is designed to demonstrate that investments in energy efficiency are economically viable for financial institutions and banks and thereby increase the banking sector’s interest in investments in the field of energy efficiency in Romania. Investments will bring financial benefit, at least 50 percent of these being the result of energy savings. FREE cooperates with the GEF/EBRD and assists in the implementation of their programme for energy efficiency. FREE has been operational in Romania since 2003. To date, FREE has concluded 18 financing contracts. Annual energy savings are estimated at 28,106 toe, the equivalent of 70,438 tonnes of CO2. In 2006, energy savings were estimated at 9,884 toe, this being equivalent to 38,427 tonnes of CO2 (NEEAP, 2006).

References

NEEAP (National Energy Efficiency Action Plans), 2006. First National Action Plan for Energy Efficiency (2007-2010). Available at: http://ec.europa.eu/energy/demand/legislation/doc/neeap/romania_en.pdf.