BNR analysis: Radiography of investments in Romania – under what conditions capital accumulation occurs
Foreign direct investment (FDI) and expectations regarding the demand have a positive influence on capital accumulation in Romania, while uncertainties play an inhibiting role, especially… Mai mult›
Romania ranks second to last among EU states in terms of national gross minimum wage, according to data published by Eurostat, at a level… Mai mult›
Some charts: Perfect chaos in Romanian budgets. A 4-year analysis of difference between law and implementation
Although at first glance it is difficult to draft them, Romania’s public budgets are, in fact, a series of indicators and lists of revenues and… Mai mult›
Tax authority’s “armed arm” was handed over to Prognosis Commission. How strongest governmental structure looks?
ANAF’s new president, Mihaela Triculescu, handed over to the National Commission for Strategy and Prognosis – CNSP the power to decide what companies are to… Mai mult›
Romania is clearly distinguishing itself within the EU in terms of current account deficit evolution, with the second highest current account deficit in 2017 and… Mai mult›
Another Energy Strategy for Romania: Hydroelectric power plant in Teleorman, among the only four objectives assumed. Experts’ reactions
de Adrian N Ionescu , 24.9.2018
The strategy identifies “substantial investments that are necessary for the modernization and upgrading of the Romanian energy system over the next 15 years,” according to the project launched on Thursday for public debate by the Ministry of Energy.
The Energy Strategy has eight objectives:
- clean energy and energy efficiency;
- ensuring the access to electricity and heat for all consumers;
- protection of vulnerable consumer and reduction of energy poverty;
- competitive energy markets, the basis of a competitive economy;
- modernizing the energy governance system;
- increasing the quality of education in the energy field and continuous education of the human resource;
- Romania, regional energy security provider;
- increasing Romania’s energy contribution to regional and European markets by capitalizing on national primary energy resources.
To achieve these objectives, the ministry proposes four strategic investments of national interest, “fixed and binding benchmarks in strategic programming; all the other measures needed to meet the strategic objectives will be operationalized assuming the implementation of strategic investment projects of national interest.”
The four investments are:
- Completion of CNE Cernavoda Groups 3 and 4;
- Construction of the pump-fed hydroelectric power plant from Tarnita-Lapustesti;
- Construction of the 600 MW Group from Rovinari;
- Construction of Turnu-Magurele-Nicopole Hydro-technical Complex (Teleorman County)
“The four <<strategic investments of national interest>> are not based on a cost optimization, they are only assumed at a political level without the support of an economic modelling.
They are assumed without any conditionality of economic efficiency, without detailing their impact on the market and the costs for the end energy consumer,” said expert Radu Dudau, director of Energy Policy Group.
“It is very good that, finally, the public debate on the new strategy begins,” said another expert, Razvan Nicolescu, former Energy Minister.
Indeed, the experts consulted by cursdeguvernare.ro have long revealed that each day when Romania’s energy policy “runs” without a coherent development and integration strategy is a new day of improvisation and turbulent waters.
“A strategy needs no context but implementation,” remarks Vasile Iuga, at the time senior advisor with PwC Romania, at the cursdeguvernare.ro conference “With the strategy on the table: Romania, in the European energy equation and the impact on the industry. Appropriate policies“.
Romania has not just “a huge potential for improving the energy efficiency” but also vulnerabilities, especially in the areas of governance, transparency and decision making,” said Razvan Nicolescu, and the current strategy does not address convincingly these challenges.
The chapter “Securing financial resources” of the new strategy invokes:
- “Using the private and/or public capital,
- European investment programs – structural funds and the one for strategic investment (which is expected to be extended by 2020 and supplemented),
- The programs of investment and development banks (EIB, EBRD, etc.)
- public-private partnerships, and investment schemes such as ESCOs for increasing buildings’ energy efficiency,
- budget revenues related to tenders for ETS system emissions permits, which it estimates to “billions of euros”
“The state can also define support mechanisms for certain types of investment, such as those for the revenue guarantee,” the document also says.
Other details – consumption, capacities
Romania’s gross energy consumption declined significantly after 1990, reaching 377 TWh in 2015, equivalent to about 19 MWh per capita, and the final energy consumption was 254 TWh, according to the Energy Strategy.
Gross energy consumption in 2030 is estimated to increase to 394 TWh and the final energy demand to 300 TWh. The consumption of energy resources as raw materials is to increase by 35%, while the consumption and losses related to the energy system will decrease by 4 TWh.
Evolution of energy demand by sectors of activity
- Energy-intensive industry
- Other industry sectors
- Agriculture & services
The results of some modelling show an increase in energy production from nuclear sources from 17.4 TWh in 2030 to 23.2 TWh in 2035. An increase to 29 TWh will be recorded in total renewable sources, which represents a share of 37.6 % of the total primary energy sources that will form the energy mix in 2030.
The energy produced from coal will record 15.8TWh and will have a share of 20.6%. The electricity production from hydrocarbons will record an increase of 1.9%, about 14.5 TWh.
- Primary energy sources, as share in electricity production in 2017
- Wind and solar
- Primary energy sources, as share in electricity production in 2030
- Wind and solar
Lăsați un comentariu
"Iceberg" operation: ANAF announces that it selected 487 companies which are to be audited based on risk analysis
Virgil Pirvulescu, Vice President of ANAF at PwC Annual Tax Conference The National Agency for Tax Administration (ANAF) has identified 487 large and medium-sized companies… Mai mult›
Commissioner Corina Cretu: There is a risk that Magurele Laser will not be completed during this budget implementation
In the absence of a rapid response from the Romanian Government to the European Commission, there is a risk that Magurele Laser can no longer… Mai mult›
The Presidential Administration announced on Friday that President Klaus Iohannis, "as the head of Romania’s foreign policy decisions and Romania's representative at the external level,… Mai mult›
Further to the message on the impact of OUG 114/2018 transmitted on Thursday to the organizations in the Coalition for Development of Romania (CDR), AmCham… Mai mult›
Finance minister stopped borrowing money from the market. Teodorovici: We have funding resources for minimum six months
Minister of Public Finance (MFP), Eugen Orlando Teodorovici, has ordered to stop borrowing operations on the market because MFF would have all the money needed… Mai mult›
BNR: If we sold foreign currency to defend Romanian leu, as PSD wants, interest rates would explode and ROBOR would go over 5-7 percentage points
The National Bank of Romania wants a "loyal cooperation" with the Ministry of Public Finance, and that involves a prior consultation with the central bank… Mai mult›
The tax on bank assets was not included in the 2019 draft budget, published on Thursday evening by the Ministry of Public Finance (MFP). According… Mai mult›
Eruption on foreign exchange market: Mechanism of spiralling depreciation. Euro - sudden surge to 4,759
The average euro exchange rate, calculated by the National Bank of Romania (BNR), suddenly climbed sharply to a new record level of 4.7569 RON /… Mai mult›
ANAF starts controls at large taxpayers. Mission stated: Combating phenomenon of externalisation of profits
The National Agency for Fiscal Administration has publicly announced the start of the "Iceberg" operation - a large fiscal control action targeting big companies operating… Mai mult›
It becomes increasingly harder for the state to borrow: Finance Ministry has attracted only a quarter of targeted 400 million
The Ministry of Finance (MFP) has only managed to sell five-year government bonds amounted to RON 110 million out of the RON 400 million issued… Mai mult›
The most important bankers in Romania say that the effects of the tax on greed will be very serious and difficult to repair over time.… Mai mult›
Rovinari power plant, part of Complex Energetic Oltenia, closed one of its energy groups on Wednesday night because of the lack of coal, as… Mai mult›
A flow of initiatives against compensatory appeal: 188 of detainees released committed robberies, rapes, crimes
USR will file on Monday a bill on repealing the compensation appeals law, based on which thousands of detainees were released from prison before completing… Mai mult›
Mugur Isarescu: "Ordinance weird thing" reduces monetary policy efficiency, which will not help Government
The National Bank of Romania (BNR) will convoke the National Committee for Macro-prudential Supervision, where the Ministry of Finance will be required to clarify the… Mai mult›