OREANDA-NEWS. March 18, 2014. As it was noted by the Deputy Minister of economy Tudor Copaci, the law regulates the specific operation of regional heating systems; it is expected to increase the energy efficiency in economy and to reduce the negative impact of energy sector on the environment, including use of cogeneration technologies.

The purpose of the law is the creation of legal base for the effective operation and regulation of the regional heating systems, establishing of principles on implementation of specific activities of regional heating systems, in terms of accessibility, availability, reliability, continuity, competitiveness, transparency, respect standards of quality, safety and environmental protection in the production, distribution, supply and consumption of thermal energy. It is planned that the adoption of law will contribute to the development of a competitive and efficient environmental technology. Cogeneration is a simultaneous production in one process of thermal and electric power.

The approved bill will create clear and transparent rules in the activities of production and distribution of heat energy in the public administration in this area, in the application of cogeneration technologies, definition and approval of tariffs for heat, licensing of activity in the heat sector, rights and duties of heat energy providers and consumer protection. This will have a positive impact on all market participants, especially household consumers, government institutions, as well as overall development of the industry.

One provision of the bill provides possibility of introducing a binomial tariff on heat, which implies a reduction of tariffs, and supply of heat energy on the basis of the contract between the heat suppliers and consumers.

Cogeneration in EU is considered one of the most effective methods for achieving of three objectives: reduce greenhouse gas emissions by 20%, increasing share of energy production from the renewable sources in the total fuel balance, and achieve energy savings of 20%.