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 “Investments are warranted if they aim to replace outdated existing capacities.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Romania, the European Union’s second-poorest member, is trying to lure foreign investors to help upgrade its outdated energy system as it seeks to diversify and lower costs for people and companies.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
On Monday, December 23, Romanian police brought Nica Robert Florin back to the country. The man convicted of possession of high-risk drugs, bodily harm, and driving under the influence of alcohol, is listed among Romania’s Most Wanted category and was also wanted internationally. Romanian authorities revealed at the beginning of October that they had indications […]
An investigation by the famous British newspaper Financial Times revealed that the campaign of former Romanian presidential candidate Călin Georgescu was supported by a Russian network also used during the pandemic in France and Germany to instill fear of vaccines. The newspaper’s investigation began in continuation of those by Bulgarian and Romanian journalists at BG...
Bucharest’s District 3 City Hall will once again organize a special New Year’s Eve event in Titan Park, with a program of live concerts, multimedia shows, and even a simulation of the Northern Lights. The event, set to begin at 8:00 PM on December 31, will focus on the theme of infinity. “If you missed […]
Traffic on Lot 1 of the A7 Ploiești-Buzău highway, stretching 21 kilometers in southern Romania, was officially opened on Monday, December 23. With this opening, 102 kilometers of the total 320 kilometers of the highway are now usable. The Moldova Highway, as it has been called, is meant to connect Romania's economically underdeveloped eastern regions to […]
The Dutch technology investor Prosus NV, also the majority shareholder of Romania’s largest online retailer eMAG, is set to buy the online travel agency Despegar.com Corp, focused on Latin America, for approximately USD 1.7 billion. The purchase consideration will be funded from existing cash resources, the company said. Founded in Argentina in 1999, Despegar is one […]
The new Forestry Code, which passed the Parliament vote on December 17 and was signed into law by president Klaus Iohannis on December 20, includes provisions that protect all forests in Ilfov, the county surrounding Bucharest, making them the cornerstone of the future green belt around the capital city. Moreover, it legislates green belts nationwide, […]
