By Andra Timu Jan 22, 2015
Romania doesn’t need to invest in new power capacities in the next 10 years as demand will be capped by shrinking industrial production, officials from Fondul Proprietatea SA and consulting firm AT Kearney Inc said.
The government, which plans to add two more new nuclear reactors at its Cernavoda plant and build new power plants with the help of foreign investors, should refrain from spending money on projects that boost production and focus more on increasing the efficiency of existing plants, Michael Weiss, a partner at AT Kearney, said in Bucharest today.
“Without major industry investments there is no need for extra capacities because existing ones can accommodate demand by 2025,” Weiss said during the presentation of a study on Romania’s energy system. “Investments are warranted if they aim to replace outdated existing capacities. Romania still uses lignite to stabilize the power market, which is not the best practice.”
Romania, the European Union’s second-poorest member, is trying to lure foreign investors to help upgrade its outdated energy system as it seeks to diversify and lower costs for people and companies. It benefited from a boost in renewable energy in the past years as companies such as CEZ AS and Enel SpA (ENEL) invested millions of euros in wind, solar and biomass plants with a total installed capacity of more than 4,700 megawatts.
Investment Needs
Still, the country needs at least 100 billion euros ($116 billion) in investments in oil, gas and power by 2035, according to the Energy Ministry’s latest estimates. The government turned to Chinese investors after ArcelorMittal, Enel and other companies withdrew from the 6 billion-euro project to build the reactors.
The reactors, together with a 1 billion-euro hydropower plant, expanding power and gas interconnection grids and Black Sea gas production are among Romania’s strategic objectives for reaching energy independence, according to a 2035 energy strategy that is currently up for public debate.
“An integrated nation-wide energy strategy, matching the economic strategy, is essential for the growth of the energy sector and should address issues such as the current low investor confidence and uncompetitive taxes,” said Greg Konieczny, a manager at Fondul Proprietatea.
Romania’s electricity demand will post “limited growth” in the next 10 years of between 0.2 percent to 0.7 percent as existing capacities can support the demand, AT Kearney estimated. That makes the reactor project “less commercially attractive without a major support scheme,” the study showed.
To contact the reporter on this story: Andra Timu in Bucharest at [email protected]
To contact the editors responsible for this story: Balazs Penz at [email protected] James M. Gomez, Pawel Kozlowski
The fund Cultura Face Bine, a national funding mechanism for cultural projects backed by private-sector financing, will begin supporting local cultural organizations in 2026. The fund aims to support grassroots cultural initiatives with a proven impact in their communities and which need resources to continue, develop, or transform their activities. The funding mechanism has been […]
The European Commission (EC) announced on Thursday, December 11, that it is referring Romania to the Court of Justice of the European Union (CJEU) for failing to meet obligations under Ambient Air Quality Directives. According to the Commission, Romania has not ensured that its national air quality monitoring network complies with legally required standards on […]
The Bucharest Court of Appeal (CAB) held an unprecedented press conference on Thursday, December 11, in response to allegations raised in a recent media investigation published by Recorder, with court president Liana Arsenie firmly rejecting the claims. However, at the start of the press event, a judge from within the institution publicly stated that the […]
Romania’s Superior Council of Magistracy (CSM) issued its first response to the Recorder documentary alleging systemic manipulation within the justice system, calling the investigation an amplification of a “campaign to destabilize judicial authority.” The council said on Thursday, December 11, that it will evaluate what measures need to be taken following the report. In a […]
MedLife, Romania’s largest private medical services network, announced on Wednesday, December 10, that it reached a market capitalization of EUR 1 billion on the Bucharest Stock Exchange (BVB). The milestone secures its position as “the most valuable healthcare company” in the country. The achievement came nine years after MedLife’s listing on BVB in December 2016, […]
The Buzău Land UNESCO Global Geopark in Romania has become a “living laboratory” this week as a team of American researchers arrived to study microorganisms capable of surviving in extreme environments. The scientists, part of the interdisciplinary research organisation The Two Frontiers Project, are examining methane seeps, sulfur and petroleum springs, saline sources, and other […]
