Renewable energy producer to sue Romania and Poland for introducing excessive taxes

The Portuguese renewable energy producer EDP Renovaveis announced on Monday that it will take legal action against Romania and Poland for the new energy taxes recently adopted by these countries, which the company considers an unfair overtaxation of unrealized profits.

Like many other EU member countries, Romania and Poland have recently introduced emergency measures aimed at recovering part of the windfall revenues generated by utility companies, with the idea of ​​helping consumers cope with the explosion of energy prices.

EDP Renovaveis told a press release that the measures introduced by Romania and Poland do not comply with the EU principle regarding the recovery of only the revenues made on the market. The Portuguese company claims that the measures in the two countries do not take into account the costs of hedging activities (covering the risk in trading) and thus the profits that companies such as EDP Renovaveis did not actually achieve would be taxed.

“EDP will follow all the legal actions that will contribute to the return to the fair rule of law and that support the much-needed investments in renewable energies in these countries and within the European Union”, informed the Portuguese company, without specifying what the actions are they are going to start them and at which court.

EDP ​​Renovaveis estimated, however, that the new taxes could lead to “unreasonable payments” and potential costs of around 300 million euros.

The Portuguese renewable energy producer operates renewable energy production capacities of 697 Megawatts in Poland and 521 Megawatts in Romania.

According to the company’s website, EDPR entered the Romanian market in 2008, by acquiring several wind projects in different stages of development. In 2010, EDPR completed the construction of its first wind farm in the country and in 2013, the first EDPR solar plant began operating. EDPR is today the third largest producer of energy from renewable sources in Romania, with an installed capacity of 521 MW.