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 “Investments are warranted if they aim to replace outdated existing capacities.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Romania, the European Union’s second-poorest member, is trying to lure foreign investors to help upgrade its outdated energy system as it seeks to diversify and lower costs for people and companies.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
Tudor Giurgiu and Cristian Pascariu's documentary Nasty, about the life and career of the tennis player Ilie Năstase, was included in the selection of the Rome Film Festival, which takes place between October 16 and October 28. The directors will meet the audience in Rome on October 21 and 22 for the film's two screenings. […]
A total of 6,839 Romanians living abroad registered to vote by mail for the upcoming parliamentary elections, according to the Permanent Electoral Authority (AEP). Additionally, 6,916 Romanian citizens have registered to vote by mail for the presidential elections. The majority of mail-in voting requests came from Romanians residing in the UK, Germany, Switzerland, the Netherlands, […]
Only 1.5% of companies in Romania with more than 10 employees used Artificial Intelligence technologies in 2023, significantly below the European Union average of 8%, according to Eurostat data, as highlighted by economist Cristian Popa, member of the board of directors of the National Bank of Romania (BNR). "The AI train is leaving. Are we […]
The Romanian company Robot Industries, a distributor of robotics and automation solutions, recently opened a new headquarters in one of Asia's main technology hubs, namely Nanjing, China. The company is in an ongoing expansion process, having recently inaugurated its European headquarters in Berlin. The new Robot Industries office opened in China will also help improve […]
Romanian prime minister Marcel Ciolacu stated during an interview on Thursday, October 17, that Romania will surely join the Schengen Area with its land borders this year. Ciolacu blamed the delays in joining the border-free area on his predecessor and current competitor for the position of president of Romania, liberal leader Nicolae Ciuca. "We have […]
Italian group Artsana SpA decided to close down in November the factory it operates in northeast Romania, in Botoşani, according to documents consulted by Economica. It employs 261 people there and produces parts for the global group Chicco. The...
