Renewable energy

To reach climate neutrality by 2050, the European Union has set a 55% emission reduction target for 2030 and the European Commission has proposed a 90% reduction target for greenhouse gas emissions by 2040. Romania, through its multiple strategies and plans, has set out a vision for gradually decreasing its emissions. While these documents reflect significant strides forward for the energy transition, especially by committing to a coal phaseout calendar by 2032, they are fraught with inconsistencies and partly rely on sizeable investments in fossil capacities. Various projects on nuclear and hydro energy are also constantly announced with limited assessment of their suitability in an increasingly decarbonised power sector. In this report, we assess Romania’s energy transition pathway. The European Gas Market Model and the European Power Market Model developed by REKK were utilised to understand the impact of Romania’s plans on emissions and the energy market and to see how Romania could resize its fossil capacity investments and achieve a carbon-neutral power sector in 2040. The models simulate a fully functional and liberalised energy markets to show the impact of different measures on wholesale energy prices. Based on the modelling results several important conclusions can be drawn: Romania can reach a completely decarbonised electricity production mix in 2040 with no security of supply risks by aiming to have no more than 3.5 GW1 of total installed gas-fired capacities by 2030 and by focusing more on wind power and a higher deployment of storage technologies. In contrast, the investments outlined in Romania’s National Energy and Climate Plan (NECP) do not ensure a decarbonised energy sector by 2040. The Romanian power sector would emit 9.2 MtCO2 in 2030 (which can be halved in a lower-gas scenario) and 3.5 MtCO2 in 2040, at slightly higher wholesale electricity prices. Replacing natural gas with hydrogen in 2035 in the all-installed capacities (as outlined in Romania’s Long-Term decarbonisation Strategy) would mean that these assets would no longer be utilised. This is because replacing gas with hydrogen would significantly deteriorate the cost-competitiveness of these capacities, immediately reaching a utilisation rate lower than 0.1%, given the high fuel prices of 82 EUR/MWh in 2030, according to renewable hydrogen cost estimations presented in the draft National Hydrogen Strategy. There is therefore a significant risk that even ‘hydrogen-ready’ investments would continue to operate on fossil fuels for economic reasons, consequently not achieving their promised emissions reductions. A higher focus on wind energy (17.7 GW onshore and 7.3 GW offshore in 2040,compared to 13.1 GW altogether in official plans) can contribute to decarbonising the power sector by 2040. Romania appears to have a regional competitive advantage in wind production. The market value of wind remains higher than that of solar for all modelled years, while lower wind investments are expected in Hungary and Bulgaria. Even with higher renewable shares than presented in official documents, Romania’s power sector can deliver on security of supply requirements. The higher balancing reserve requirement can be accommodated through investments in storage (reaching 880 MW in 2030 and 3.4 GW in 2040) covered by existing hydro capacities, new storage installations and, until 2035, gas power plants. An annual installation of 800 MW rooftop PV and 120 MW in battery can further decrease balancing pressures and slightly decrease wholesale prices (by about 1.1 EUR/MWh in 2040). A high renewables scenario would also have a positive impact on the electricity trade balance. In either scenario, Romania becomes a net exporter of electricity from 2030. 17.5 GW of solar capacities as well as 17.7 GW onshore and 7.3 GW offshore wind is sufficient to achieve a decarbonised power sector by 2040. Existing hydro power facilities are key for balancing a renewables-dominated power sector. However, new investments in hydro capacities (including 300 MW in small hydro installations and a 1 GW pumped hydro capacity that would come online in 2032) would only have a limited effect on electricity prices and security of supply – assuming the mentioned battery storage investments are realised. Hard coal and lignite phaseout are manageable from a security of supply perspective, even with lower than planned investments in gas capacities. Based on market prices alone, the modelling results show that coal fired production will rarely be economical from 2025 (expected capacity factor of less than 1%). New nuclear energy capacities can contribute to achieving a decarbonised power sector, even if the planned investments suffer delays. The modelling results show that slight delays in the construction of new nuclear (two new conventional CANDU reactors and 460 MW of small modular reactors) do not pose security of supply risks, even in a lower-gas scenario of 3.5 GW installed gas capacities. Even with such delays, Romania would continue to be a net electricity exporter after 2030 based on the expansion of its renewable capacities, albeit the prices of electricity and CO2 would be slightly higher, because of the nuclear delay. Additionally, the refurbishment of Cernavodă’s Unit 1, scheduled for 2027–2029, which will take 700 MW out of the system, will not pose supply security risks, even in a lowergas scenario. This is because significant new renewable energy sources (RES) will begin operating, with solar energy nearly doubling from 4.3 GW to 8.2 GW and onshore wind increasing by more than 50% from 5 GW to 7.9 GW between 2025 and 2030. Natural gas capacities will increase by 500 MW, and battery storage will see an approximately fourfold growth in the same timeframe. Mihnea Cătuți, EPG Head of Research Mihnea is the Head of Research at EPG, coordinating the research strategy and activities within the organisation. His expertise includes EU climate and energy policy and the transition in South-East Europe.He is also an Associate in E3G’s Clean Economy Programme, contributing to the work on industrial decarbonisation. In the past, Mihnea was an associate researcher at the Centre for European Policy Studies (CEPS), where he led the work on the future of hydrogen in the EU. He was also an associate lecturer in Public Policy at the University of York. Mihnea has a Bachelor of Science degree from the University of Bristol and...

The public discourse is still flooded with faulty narratives on the future of hydrogen, especially on the doubtful expectation that hydrogen can either replace the use of natural gas in most current uses and it can therefore provide a lifeline for the continued use of fossil fuels throughout the following decades. To counter such narratives, this paper dispels a set of nine myths that are still pervasive in national discussions on hydrogen.

În 2024 România ar trebui să își regândească modelul de dezvoltare economică printr-o reorientare către tehnologiile viitorului și tranziția către o economie cu emisii reduse de gaze cu efect de seră. Pentru aceasta este necesară renunțarea la apatia clasei politice și la căutarea soluțiilor în trecut și reorientarea priorităților naționale către o economie bazată pe utilizarea surselor de energie curată, dezvoltarea infrastructurii energetice, atragerea lanțurilor valorice pentru tehnologiile verzi și susținerea capacității de cercetare și inovare pentru crearea de locuri de muncă bine plătite, care să poată răspunde provocărilor următoarelor decenii. Mihnea Cătuți, EPG Head of Research Mihnea is the Head of Research at EPG, coordinating the research strategy and activities within the organisation. His expertise includes EU climate and energy policy and the transition in South-East Europe.He is also an Associate in E3G’s Clean Economy Programme, contributing to the work on industrial decarbonisation. In the past, Mihnea was an associate researcher at the Centre for European Policy Studies (CEPS), where he led the work on the future of hydrogen in the EU. He was also an associate lecturer in Public Policy at the University of York. Mihnea has a Bachelor of Science degree from the University of Bristol and a Masters in European Public Policy from the University of York and the Central European University. He is currently finalising his PhD at the University of York focusing on energy and climate governance in the EU. Contact: mihnea.catuti@enpg.ro

Spre deosebire de emisiile operaționale de carbon, care țin de consumul de energie în clădire și care fac obiectul măsurilor de creștere a eficienței energetice, emisiile încorporate ale clădirii sunt cele care țin de materialele de construcții și de activitățile de construcție, precum și de tratamentul la finalul duratei de utilizare. De aceea, contribuția sectorului clădirilor – care, în UE, reprezintă mai bine de 40% din consumul total final de energie – la realizarea unei traiectorii de neutralitate climatică până în 2050 nu poate fi realizată fără controlul și reducerea emisiilor încorporate de carbon.

Proiectul, care a stârnit imediat consternare în piața de energie, reprezintă o tentativă de oficializare a unei practici decizionale la vârful politicii prin care fondurile europene pentru energie sunt controlate în mod netransparent și direcționate necompetitiv către unele mari companii de stat, cu încălcarea flagrantă a legislației naționale și europene privind concurența și ajutorul de stat, dar și a prevederilor de transparență și nediscriminare din ghidurile mecanismelor financiare europene.

Rămân o serie de politici adoptate la nivel național fie înainte, fie după asumarea pachetului “Fit for 55” la nivelul UE, care ar trebui reanalizate în vederea alinierii la obiectivele mai recente și mai ambițioase din punct de vedere climatic.

As part of the ConsenCUS project, EPG is analyzing the narratives and perceptions surrounding carbon capture, utilization and storage (CCUS) in Romania, where a novel carbon capture and conversion technology will be demonstrated in the near future.

Offshore wind power plays a key role in Europe’s pathways to reducing dependency on fossil fuel imports and decarbonisation by 2050, in a moment when EU’s energy security interests and climate objectives are fully aligned.

The main resource of Gorj County is represented by its inhabitants, hence any transformation plan should be centred on them, as they are both the driving force and the beneficiaries of any economic and social progress of their county. The transition towards a carbon-neutral economy, probably the main concern worldwide in the next few decades, requires a significant number of new jobs. That is why Gorj County can rebuild its local identity around the sustainable energy transition, contributing to the significant efforts required for investing in renewable energy, energy efficiency or clean transport, thus continuing to play a central role in the Romanian economy. Gorj County can thus shift from the county with the highest carbon dioxide emissions in Romania to a leading region in this sustainable transition. This is a favourable moment for starting this transformational process for the county’s economy. Post-pandemic recovery, the funding made available across Europe especially for this purpose, but also the significant amounts that Romania has available for the energy transition, along with the commitment of central and local authorities to ensuring a just transition, create the first and, at the same time, a rare window of opportunity for reconfiguring the county’s economy. In supporting this approach, this study proposes a transition path which can ensure sustainable and diversified economic growth, attracting well-paid jobs and increasing the quality of life. For the transition of Gorj towards a sustainable county, this study proposes a series of short-, medium- and long-term objectives. The main immediate priority of the county authorities should therefore be to capitalise on the potential of renewable resources and renovate existing buildings. Renewable energy is the main decarbonisation vector of the European economy. The solar potential in Gorj County is above the national average and, consequently, must represent a priority in this endeavour. At the same time, the renovation of buildings to increase energy efficiency is another opportunity offered by the sustainable transition, with positive effects on the county’s economy, as well as on individual households, by reducing energy costs and improving living conditions. As long-term objectives, Gorj County must attract as large a share as possible of the value chains for advanced energy technologies with a contribution to the decarbonisation process. It is worth mentioning that for the counties where coal mining and its use in the energy sector were the main object of activity, staying relevant in the operation of the national energy system is justified. By developing the proposed value chains, their role will remain relevant.  Following an analysis of the economic situation in the county and of its educational profile, the study identifies four value chains: 1. renewable energy and electricity grids; 2. energy efficiency in buildings and heat pumps; 3. batteries, components and infrastructure for electric vehicles; 4. “green” hydrogen-based technologies. The county’s competitive advantages are also presented as well as a few measures that could enhance them

The present study assesses the natural and technical potential of Romania’s offshore wind sector, finding an estimated total potential natural capacity of 94 GW, out of which 22 GW could be installed as fixed turbines, leading to a total Annual Energy Production (AEP) of 239 TWh, with 54,4 TWh from fixed turbines. The data analysed in this report show that wind speeds increase with the distance to the shore, with only the central part of the deep-water sector having more sizeable mean wind speeds (close to 7 m/s). A large part of Romania’s Exclusive Economic Zone (EEZ) consists of a deep-water area (>50 m) that is more suitable for floating platforms. Nonetheless, several offshore wind farms in Europe have been recently built at about 60 km from shore, a distance that is just within the Romanian transition area from shallow to deep water. The study identifies two potential clusters with most favourable conditions for a first stage of offshore wind development, based on fixed turbines: one with capacity factors between 33-35%, in water depths below 50 m at 40-60 km from the shore – an area that strikes the right balance between wind resources and costs of the required offshore network, given the possibility to inject the output in the Constanța Sud electrical substation and the proximity to the Port of Constanța.

This analysis focuses on the tax applied to the water used by hydroelectric power plants in Romania. This study also includes information on similar water taxes around Europe and a comparison between them and that applied in Romania. Although set in Romania in 2000 as a small tax meant to raise funds for development of hydro projects, this fee has increased significantly over the years, making it even harder for the hydroelectric producers’ activity. In the category of invented-out-of-nothing taxes one can find the fee imposed by NARW – the National Agency "Romanian Waters” (ANAR, in Romanian) for water used by power plants producing electricity from hydro sources (micro or large scale). True, this is not a fee that exists only in Romania, but it is nonetheless a bizarre cost that hydroelectric producers must pay. Actually, more than 40% of the energy produced from hydro sources in the 27 countries analyzed, at European level, incurs different types of water taxation. Out of these countries, 11 (9 of which are EU member states) pay different types of fees for hydro power generation, with Romania paying the most for water expenses, according to Hidroelectrica‟s (the main hydro electricity producer in Romania) special administrator.