With the adoption of its Long-Term Strategy and the drafting of a revised National Energy and Climate Plan, Romania has made significant strides in planning the decarbonisation of its economy. Current strategic documents can be enhanced through more comprehensive and detailed plans for implementing cost-optimal decarbonisation pathways, backed by clear policy and financing instruments. To this end, Carbon-Free Europe, Evolved Energy Research and Energy Policy Group have prepared a detailed model outlining eight scenarios for decarbonising Romania’s economy. The results of the model point to the following high-level conclusions:
- The reduction of final energy consumption is a primary decarbonisation lever, especially in the buildings and transport sectors.
- Romania must increase its ambitions for the development of clean energy capacities, with a focus on solar energy coupled with storage in the medium term, and on onshore and offshore wind energy in the long-term. Nuclear energy can also play a key role especially if the technology sees significant cost reductions in the long run.
- Electrification must be accelerated through the deployment of heat pumps for residential heating and electric mobility. The electrification of industry and foreseen expansion in industrial activity will further increase electricity demand.
- While a short-term expansion in natural gas consumption is projected, especially driven by the power sector, demand across sectors is expected to gradually contract post-2030, with remaining consumption in 2050 coming mainly from residual use in industry.
- Developing Romania’s electricity infrastructure is essential, including transmission and distribution grids, interconnectors, and storage capacities.
- Hydrogen use must be prioritised for hard-to-abate industries and some segments of the transport sector. The cost effectiveness of hydrogen consumption in the power sector and for heat production is expected to be low.
- Carbon capture and storage (CCS) infrastructure must be deployed immediately to facilitate industrial decarbonisation. No CCS applications are foreseen in the energy sector.
- Interconnection capacity must be strengthened and developed for electricity, hydrogen and CO2, with Romania being expected to be a key regional player.
- Romania is well placed for capturing CO2 from biofuels production, generating negative emissions and supporting the development of geological storage capacities. 10.Approximately €6 bn/year of investments are estimated until 2050 for electricity, hydrogen, and biofuels production, electricity and hydrogen storage, and carbon
capture. With most EU funding sources being available only until 2032, Romania needs to plan how it can mobilise other public and private sources to maintain the pace of investments
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 was awarded a PhD from the University of York with a thesis focusing energy and climate governance in the EU.
Contact: mihnea.catuti@enpg.ro