Romania - Country Commercial Guide
Energy

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2020-08-18

Overview

The energy sector is a priority for Romania’s economy and security policy. The country is slowly shifting from coal to gas, nuclear, hydro, and other renewable energies.

On April 23, 2020 the Ministry of Economy, Energy and Business Environment submitted for public debate the Environmental Appraisal for the “National Integrated Plan for Energy and Climate Change 2021-2030”  PNIESC.  http://www.economie.gov.ro/transparenta-decizionala/proiecte-in-dezbatere-publica

There are five national objectives taken under consideration in PNIESC, with estimated targets for 2030 – decarbonization (decrease of GHG emissions with 40%; consumption from renewable energy sources – 32% ), energy efficiency (improvement by 32.5%), energy security, energy domestic market and research, innovation and competitiveness (interconnection of energy market – 15%). http://economie.gov.ro/images/transparenta-decizionala/PNIESC%202020/PNIESC_SEA_23.04.2020.pdf

To have a broader image of the market, according to PNIESC, following forecasts have resulted after applying the modelling scenarios to 2030 level: estimated population will reach 18.4 million; GDP - approx. 28% increase; constructions – 5% decrease; services and agriculture – 35.7% increase; energy – 11.5% increase; industry – 32.4% increase.

Generation of Energy

The main electricity generation companies are state-owned: Cernavoda nuclear power plant (2x700 MW installed capacity for units 1+2, ensuring approximately 20% of the total energy mix - https://www.nuclearelectrica.ro/cne/en/), 208 hydropower and pumping plants – 6.444 GW installed capacity ensuring more than 25% of energy mix  (http://transelectrica.ro/web/tel/home; https://www.hidroelectrica.ro/article/20), and 10 coal-fired power plants with installed functional capacity of approx. 5 GW (Ministry of Energy, 2018).

Transmission of Energy

The electricity transmission system in Romania and the interconnection system with its neighboring countries is managed and operated by the majority state-owned Transelectrica SA company. They also manage the market operation, the grid and market infrastructure development, and the security of the national energy transmission system.  (http://www.transelectrica.ro/en/web/tel/home).

Supply & Distribution of Energy

By end of 2019 four major electricity suppliers were active in Romania (Electrica, ENEL, E.On, CEZ) covering different regions.

In May 2020 there were 136 licensed electricity suppliers and 117 licensed gas suppliers, out of which 27 were licensed for both (http://licitatii.furnizorenergie.ro/furnizori/).

In 2018, 9.448 million users were connected to the power grids through the eight licensed distribution system operators (DSO) (54.72% in urban areas) (DSOs: e-Distributie Muntenia, e-Distributie Banat, e-Distributie Dobrogea, Distribuție Energie Oltenia, Delgaz Grid, SDEE Muntenia Nord, SDEE Transilvania Nord, SDEE Transilvania Sud). (Raport national 2018 National Agency for Energy Regulation ANRE).

Leading Sub-Sectors

Oil & Gas

Romania is the largest producer of oil and gas (O&G) in Central and Eastern Europe and has the potential to dominate the European O&G market as a result of discoveries in the Black Sea, and after BREXIT.

Onshore natural oil & gas production in Romania is provided by traditional producers such as Romgaz SA, OMV Petrom SA, Amromco Energy SRL, Mazarine Energy Romania, Raffles Energy SRL, Stratum Energy Romania.

Main offshore title-holders in the Black Sea are Black Sea Oil & Gas, ExxonMobil, Lukoil, OMV Petrom, Petromar Resources, Romgaz SA (Harta concesiunilor offshore Romania - Rbsta.ro; http://rbsta.ro/en/)

LNG by the Black Sea

To date, the Black Sea has no LNG terminal. Romania had plans to build the LNG terminal at Constanta (land based). Since Romania’s priority is to complete the BRUA pipeline and start the gas production in the Black Sea, the Constanta LNG project might have a potential start-up in 2026, still awaiting private investment. https://www.energyworldmag.com/black-sea-lng-dreams-vs-reality/

Romania has extremely large potential for LNG developments in the Black Sea. With infrastructural investments and the development of competitive market mechanisms, Romania can truly succeed in becoming a major European LNG supplier and transport hub.

Nuclear Sector

Nuclear energy will continue to play an important role in the energy mix for decades to come.

Romania currently has one nuclear power plant, Cernavodă, with two operational reactors and two more under construction (pressurized heavy water reactors of CANDU 6 design - CANadian Deuterium Uranium), each with a design gross output of 706.5 MWe. The two reactors in operation supply approximately 20% of total energy production.

Coal Sector

In first half of 2019, the estimated lignite resources amounted to 690 mln. Tons. https://www.economica.net/importurile-de-carbune-au-crescut-cu-aproape-50prc-in-primele-cinci-luni-productia-de-carbune-a-scazut-cu-2-4prc-ins_171619.html).

The role of traditional fuel such as oil, natural gas, coal, and uranium in the energy mix is currently being reconsidered / renegotiated according to European Union new context and trends (EU Green Deal). Romania produces pit coal and lignite and maintains several coal-fired powerplants – all needing upgrades in the immediate future in order to comply with European Commission guidelines.

Renewable Energy Sector

Romania is seeking to derive more of its energy needs from renewable sources. Romania is seen as a fast-growing market for wind energy in the Southeast European region, with installed wind generation capacity skyrocketing from as little as 7 MW in 2007 to 3,029 MW in 2019 - https://newsenergy.ro/productia-eoliana-masiva-duce-exporturile-de-electricitate-aproape-de-maxim/.

In April 2020, approximately 50% of generated power had renewable resources: hydro power – above 35%, Wind above 10%, photo-voltaic – above 2%, and biomass – above 0.8% (www.transelectrica.ro).

Opportunities

Power production & distribution

American companies can find opportunities (equipment, know-how, technologies, design and construction, installation, upgrading, maintenance, and repairs) in electrical power systems, products and services related to energy efficiency, smart grid, power distribution, power and gas storage, and refurbishment/construction of power generation capacities.

O&G

According to the national gas transport system operator Transgaz’s Investment and Development Plan 2018-2027, there are several strategic investment projects to be run:

  • BRUA (Bulgaria-Romania-Hungary-Austria pipeline) planned to be finalized by end of 2020; development of South Gas Transportation Corridor (designed to capture the Black Sea shore to-be-produced gas;
  • development of SNT’s capabilities to capture offshore gas; gas interconnector with Serbia; modernization of Negru Voda 1 and Isaccea 1 compressor stations. 

Onshore and Black Sea offshore fields development, operation, and maintenance: the discovery of new oil and gas reserves in the Black Sea basin offer opportunities for companies with expertise in oil drilling, transmission, refining, and retrofitting existing facilities.

Nuclear

Cernavoda Nuclear Plant – maintenance & refurbishment for active reactors 1 & 2; construction of two new reactors (‎2 × 700 MW; total estimated value approximately $7 billion). In June 2020, the Romanian Government canceled the MOU signed with China-based CGN.

Trade events:

Other relevant organizations:

 

Contact information

Name: Mihaela Dodoiu

Email: mihaela.dodoiu@trade.gov