Renewable energy directive revision impact on the Romanian energy sector

The current Renewable Energy Directive (RED II) is being amended, as part of a broader overhaul of EU climate and energy legislation, to update the target and the legislation for delivering at least a 55% reduction in GHG emissions by 2030.

The European Commission’s RED revision is the key EU legislative instrument for promoting the uptake of renewable energy sources and lays the foundation for higher RES targets at EU level and in every member state, mainstreaming renewables in buildings, H&C, industry, and transport.

There are specific challenges that need to be addressed as part of the revision:

  • The increased RES share in the H&C sector for transitioning away from inefficient district heating systems, individual gas boilers and firewood to electric heating and tightened biomass sustainability criteria are unlikely to be met in the absence of dedicated EU funding.
    • Unrestricted imports of second-hand personal vehicles would need to be limited in order to meet the GHG intensity reduction objectives in the transport sector by 2030 in Central and Eastern Europe.

The RED II revision could bring significant opportunities for Romania to overhaul its entire energy system:

  • It will encourage Romania to address its generation capacity deficit and replace outdated fossil power plants with renewable capacities, translating into cheaper electricity, more jobs, more economic benefits, and the possibility of developing national value chains for clean energy technologies.
    • It will allow Romania to become more ambitious regarding a wide-scale penetration of renewables in sectors other than electricity.
    • Romania is encouraged to investigate and develop its significant offshore wind potential, as well as set-up a cross-border pilot project. If carefully implemented, regional cooperation on renewables opens a pathway for Romania to monetise its above-average RES potential.
    • It can help create a market for clean hydrogen, allowing Romania to be the key player in the region and develop local value chains based on its significant potential.

Latest Publications