Energy-sector decarbonisation bill clears Senate

The Senate adopted on Tuesday the legislative proposal on the decarbonisation of the energy sector, introducing an amendment proposed by the Social Democratic Party (PSD), stipulating that lignite- and hard-coal power units may be phased out only after equivalent new energy capacities are built and commissioned. The vote was 73 in favour, 42 abstentions, and eight senators not voting.PSD Senator Daniel Zamfir said the amendment was needed because Romania cannot afford to close coal capacities under current conditions, pointing to the war and the energy crisis. He argued that the phase-out timetable agreed in the NRRP, which sets August 31, 2026 as the deadline, is no longer realistic.Acting Prime Minister Ilie Bolojan countered that the amendment does not solve the immediate problem and risks jeopardising a NRRP milestone. He noted that some coal plants cannot be closed this year because replacement capacities were not built, citing Craiova as an example. Bolojan stressed that the amendment affects a milestone already validated by the European Commission and linked to disbursements Romania has received under Payment Request 2. Any legislative change touching a closed milestone, he warned, could trigger additional penalties, on top of those Romania already faces if it fails to close coal capacities this autumn.Senator Sorin Sipos of the Save Romania Union said the PSD bears responsibility for Romania's lack of new production capacity, recalling earlier legislative changes that delayed offshore gas development. He argued that reopening a NRRP milestone already declared complete exposes Romania to loss of EU funds.Senator Andrei-Emil Dirlau of the Alliance for the Unity of Romanians criticised the rapid coal phase-out, saying successive governments pushed measures that contributed to the current energy crisis. He also called for renegotiating and delaying mine closures.The adopted bill amends Government Emergency Ordinance 108/2022 on energy-sector decarbonisation. It extends the ban on commissioning new coal-based electricity production capacities to include anthracite and peat, not only lignite and hard coal.The bill also allows exploration and extraction of lignite, anthracite, peat or hard coal for non-energy uses, serving industries such as pharmaceuticals, medical, food, textiles, construction and chemicals.Several exceptions permit new coal-based electricity capacities in specific circumstances, including: forming strategic reserves of lignite, anthracite, peat or hard coal for mobilisation and wartime needs; ensuring energy resources during states of emergency or siege; and preventing or countering threats to Romania's national sovereignty. Any new coal-based capacity must comply with best available techniques.The bill further states that coal-based capacities still available on December 31, 2021 may be taken out of operation only after new equivalent capacities are built and commissioned, as provided in Article 4(9) of OUG 108/2022.The Senate is the decision-making chamber for this piece of legislation.