Romania Clean Energy
Romania Overview
The clean energy sector in Romania is comprised of wind (2,673 MW - 28.55% of the energy mix), hydro (2,247 MW – 24.05%), nuclear (1,369 MW – 14.65%), solar (226 MW – 2.41%), and biomass (66 MW, 0.71%); with solar, wind and biomass reaching 31.67% of 9364 MW total production. The target that Romania has set for 2030 clean energy consumption is 30.7% of the energy mix, which might be raised to 34%. The Ministry of Energy will update the National Integrated Plan for Energy and Climate Change to harmonize with EC recommendations from RePower EU program, and thus the 30.7% target will most probably be raised to 34%. Until 2024, the Ministry intends to install capacities of 950 MW.
The State of Clean Energy in Romania
In 2022, Romania received 1.4 billion Euro from the EU Modernization Fund for transition towards clean energy. The amount will cover construction of new eight solar parks and two electric power plants with gas turbines in combined cycle, to replace lignite with renewable sources and gas. The projects will contribute to the modernization of power systems, reduce greenhouse gases in the energy, industry, transportation and agriculture sectors; and enhance energy efficiency.
Construction of one of Europe’s largest solar parks will be finalized by March 2023 in Arad County (Western Romania), valued at 800 million Euro, with 1,044 MW capacity. The designed park will include a state-of-the-art energy storage solution. Monsson Romania (part of Mosson Group Sweden), one of the largest renewable energy developers in Romania, have signed an agreement with Rezolv Energy (Czech Rep.) to build this park.
Another solar park, which might be the largest in Europe with an installed capacity of up to 1,500 MW, will be built in Dolj County. The investment may take 3,000 ha, and surpass 1.2 billion EUR. At the end of 2022 this project has been approved by the National Supreme Council for Country Defense as a national interest project, among ten Hidroelectrica investments, to be finalized by 2026. According to the Administration of the State Domains (ADS), the project will involve a partnership agreement between the Ministry of Agriculture, Ministry of Investments and European Projects, Ministry of Energy and Hidroelectrica. Technically, ADS would give under direct concession to Hidroelectrica.
One decade ago, Romania had one of the most dynamic evolutions on this niche. But the last major project was finalized in 2015. Now, Romania ranks among the last within EU regarding solar and wind energy produced per capita. The development of such energy has been significantly slowed down 9 years ago (2013) by a political decision (the Government of Romania was cutting in half the number of green certificates awarded to renewable energy producers, based on the alleged energy price increase for consumers). Romania’s output of solar and wind energy has remained flat since 2014. It continued to use more gas and coal than solar and wind energy. In the meantime, some EC member states have increased their clean energy capacity 6 times.
For Romania to reach its target of 30.7% renewable energy of total consumption by 2030, the Ministry of Energy informs that the country plans to install net capacities of 5.1 GW solar and 5.3 GW wind, i.e., to install additional capacities of 6.9 GW out of renewable sources.
Main Drawbacks
Lacking investment, the energy sector has degraded. From being a net energy exporter a few years ago, Romania has entered a constant deficit. During 2018, Romania was a net exporter of energy, the level of exports (5.5 TWh or 9.8% of the domestic consumption) being almost double to the level of imports (2.9 TWh or 5.3% out of the domestic consumption). Among the main reasons, inefficient or shuttered coal plants have not been replaced by clean projects.
There is also a labor force problem. A Solar Power Europe report published in October 2022 showed that to achieve the 2030 targets, between 47,000 and 60,000 employees would be needed… in the solar sector alone.
Potential investors cite legislative instability and lack of momentum as hindrances. In 2022 alone, there were technically six changes in the law, negatively affecting current contracts, extending tender timeframes while cancelling others – in total, leading to financial losses.
On the other hand, there are many renewable projects to be implemented, but there is a high saturation of distributors. As a result, transmission operator Transelectrica experiences saturation of networks, deadlines for connecting being planned significantly later than the requested date, and delayed projects.
Best Prospects for U.S. Exporters of Clean Energy
Taking into consideration the programs, calls for projects, and the (European Union and Romanian Government) funding available described above, U.S. manufacturers of integrated renewable energy technologies (especially wind and solar), energy efficiency smart solutions will find strong demand in the Romanian market. However, there are conditions to apply for such EU funded projects, conditions agreed at the EU level which must be fulfilled by any foreign entity to apply.
Companies
Hydro-energy
State owned – Hidroelectrica - Hidroelectrica is a leader in electricity production and the main provider of technological services required in the National Energy System in Romania. Parent - The Romanian state, through the Minister of Energy (80,056%) Proprietatea Fund (19,943%). Investments for 2023 (over 1 billion Euro) - Portile de Fier II power complex, hydro power plant Raul Mare Retezat 349 MW. The company is the largest producer of energy in Romania and has finished the first nine month of 2022 with a higher profit than in 2021 by 37%.
Solar energy (by end 2022, in order of the PV park installed capacity operated) – 21 parks
GPSB Solaris 48 SRL
LJG Green Source Energy Gamma SRL
Green Vision Seven SRL
XPV SRL
Skybase Energy SRL
LJG Green Source Energy Beta SRL
VIS Solaris 2011 SRL
Eye Mall SRL
EDPR România SRL
Enel Green Power România SRL
Romkumulo SRL
Solar Future Energy SRL
Tinmar Green Energy SRL
Varokub Energy Development SRL
Enel Green Power România SRL
Vrish Pro Investments SRL
Petrotel-Lukoil SA
Casa Crâng SRL
Challenges: Due to prices / costs, the US companies are not present on the market. A major reason is also the dumping prices for Chinese products / equipment to be used.
Wind energy (by end 2022) – the largest 14 parks in order of installed power
Tomis Team SA
Ovidiu Development SRL
Enel Green Power România SRL
EDRP România SRL
Ecoenergia SRL
Ewind SRL
Enel Green Power România SRL
Crucea Wind Farm SA
EDRP România SRL
Land Power SRL
Eolica Dobrogea One SA
EP Wind Project (ROM) Six SA
Corni Eolian SRL
Enel Green Power România SRL
Verbund Wind Power Romania SRL
Nuclear
Nuclearelectrica - Since July 27, 1998 “Nuclearelectrica” – SA is registered with the Register of Commerce, Chamber of Commerce and Industry, as a state-owned company. SNN SA is reporting to the Ministry Energy. After the listing on the Bucharest Stock Exchange in 2013, the state owns 82,49% of Nuclearelectrica’s shares and other shareholders – 17,50%. The main activity fields of SNN SA are centered on the generation of electrical and thermal power, and manufacturing of nuclear fuel. SNN SA also coordinates the investment-development activities as well as the human resources training and optimization. SN Nuclearelectrica SA has two branches, no legal person:
- Cernavoda NPP Division operating Cernavoda NPP Units 1 and 2 and the auxiliary services.
- FCN – Pitesti, the Nuclear Fuel Plant – manufacturing nuclear fuel for Cernavoda NPP Units 1 & 2
Also, Nuclearelectrica owns 100% of the shares of the project company, EnergoNuclear.