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Accelerating Energy Efficiency and Decarbonisation in the Building Sector: Scenario for Achieving EU and National Targets

The revisions of EU legislative files, aligning with the net-zero emissions target for 2050 and the 55% net emissions reduction by 2030, are ushering in opportunities for the building sector to accelerate emissions reductions through increased energy efficiency and decarbonisation measures. Driven by advancements in energy efficiency and low-emissions HVAC systems, the building sector has shown significant untapped potential for decarbonisation.  To meet the updated energy efficiency targets, Romania must prioritise and accelerate the depth and pace of building renovations, focusing on upgrading the least energy-efficient buildings (classified as E, F, and G) to achieve higher performance ratings of class...

Combined Cycle Gas Turbine (CCGT). A Romanian Perspective.

The energy sector of Romania is transitioning from an emission-intensive power generation towards less carbon-intensive methods of electricity production. Natural gas power plants, relying on gas turbines, are seen by many as an intermediate step to a fully decarbonised energy sector. Significant natural gas-based power generation is currently under development in Romania. These projects have been included in the country’s strategic plans and consist of the development of at least 3.5 GW of CCGT power plants until 2027. While gas combustion emits less CO2 than coal, these capacities would still be important emission sources. To overcome this, these new installations...

Successful CfD Auction Brings Optimism, But Industry Challenges Persist 

Context  Romania adopted Government Decision No. 318/2024 in April 2024, introducing a Contracts for Difference (CfD) scheme to support low-carbon emissions technologies. Throughout the summer of 2024, ANRE set out the methodology for determining and collecting CfD contributions, and the Ministry of Energy approved the state aid scheme.   The first CfD auction has concluded and successfully procured the target c. 1.5 GW of installed capacity (1,096 MW for onshore wind and 432 MW for solar). Following the technical evaluation, 47 bids were eligible for financial evaluation with 21 applicants awarded contracts. Maximum prices were set at €78/MWh for solar and...

Romania’s Offshore Wind Potential: Policy Pathways for Sustainable Development

Offshore wind energy is a crucial element of the European Union’s decarbonisation plan. With substantial untapped potential in the Black Sea, Romania has the opportunity to become a regional leader, particularly following the adoption of its Offshore Wind Law in 2024. This paper was written as part of the project BLUECEE – Strengthening Policy and Governance Capacity for Blue Energy in Central and Eastern Europe. The project is part of the European Climate Initiative (EUKI) of the German Federal Ministry for Economic Affairs and Climate Action (BMWK). The opinions put forward in this report are the sole responsibility of the...

Leveraging the EU Cohesion Policy for a Clean Industrial Revival

Heavy industry, an engine for development The EU’s heavy industry is under enormous pressure. Across the continent, producers of steel, cement, chemicals, and other essential materials are announcing expensive transformation plans to maintain their competitiveness in a low-carbon world, while struggling to compete with cheap imports and to overcome the current sluggish demand for green products. Said transformation plans are often dependent on state-led infrastructure development – both for enabling their execution (such as carbon dioxide transport infrastructure for carbon management projects) and for creating lead markets to increase the certainty of investment payback (for example, long-term contracts for purchasing...

High-Level Roadmap for Decarbonising Cement and Lime Production in Romania

With stricter climate rules, industries that emit a lot of carbon face tighter deadlines to reduce emissions. To stay competitive, the cement and lime sectors must adopt new strategies and invest in low-carbon technologies. These changes will be costly and complex. While Romania lags behind other countries like Bulgaria and Poland in carbon capture projects, cement and lime will still be vital for Romania’s growth. This is due to the country’s planned infrastructure projects, such as new roads and buildings by 2030. Recommendations for the Next 5-10 Years To succeed, industries and the government must commit to using the best...

Planul Social pentru Climă în România: o punte între politicile climatice, energetice și sociale

Fondul Social pentru Climă (FSC) se dorește a fi un instrument care sporește eficiența și atenuează impactul asupra bunăstării ca efect al extinderii tarifării emisiilor de carbon în sectoarele clădirilor și al transportului rutier prin introducerea sistemului de comercializare a certificatelor de emisii (ETS2). FSC va ajuta gospodăriile vulnerabile și utilizatorii de mijloace de transport să reacționeze la creșterea prețurilor la combustibilii fosili prin facilitarea investițiilor în soluții cu emisii reduse de carbon.  Acesta poate oferi, de asemenea, un sprijin direct temporar al veniturilor pentru a acoperi impactul inițial asupra grupurilor vulnerabile până când investițiile pe termen lung își produc...

The Social Climate Plan in Romania: bridging climate, energy and social policy

The Social Climate Fund (SCF) is meant to be a tool that increases the effectiveness and mitigates the welfare impact of the expansion of carbon pricing to buildings and road transport through the introduction of the Emissions Trading System 2 (ETS2). The SCF will help vulnerable households and transport users respond to higher fossil fuel prices by enabling investments into low-carbon solutions.  It can also provide temporary direct income support to cover the initial impacts on vulnerable groups until the long-lasting investments take effect, but this is not the main support mechanism. Importantly, the SCF interventions need to primarily address...

Varianta finală a Planului Național Integrat în domeniul Energiei și Schimbărilor Climatice: obiective mai ambițioase dar lipsite de traiectorii clare.  

Ministerul Energiei a transmis recent Comisiei Europene versiunea finală a Planului Național Integrat în domeniul Energiei și Schimbărilor Climatice (PNIESC), documentul-cadru prin care România își stabilește obiectivele și măsurile pentru decarbonizare, aliniate cu țintele europene pentru 2030 și cu angajamentul de a atinge neutralitatea climatică până în 2050.  Publicat pentru prima oară pentru consultare la finalul anului 2018, proiectul Planului a trecut printr-o lungă serie de modificări până la varianta finală. În ultimii ani, experții EPG au participat la consultările organizate de Ministerul Energiei privind acest document cu o deosebită importanță strategică și au comunicat necesitatea unei serii de ajustări,...

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