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• |Romania
• |Energy Sources

Electricity

Structure of power sector

Nuclear Power Plants

Romania operates, at the Cernavoda Nuclear Power Plant, a Canadian-designed CANDU 6 type reactor with a nominal capacity of 700 MWe. This unit has been licensed following the Canadian licensing requirements for similar reactors in Canada. Cernavoda Unit 1 provides 10 % of the country's electricity.

Since August 2007, Unit 2 of Cernavoda is completed and operational. The installed capacity of Unit 2 is 700 MWe. Nuclearelectrica is planning on building two further reactors with a capacity of 720 MWe each. It has therefore invited binding bids for investors interested in forming a public-private partnership with Nuclearelectrica.

As regards nuclear safety, Romania has continued to develop the legislative and regulatory framework. However, no progress has been achieved in dealing with spent fuel and nuclear waste. Legislation has been harmonised with the adoption of orders for approving EURATOM safeguards, on radiological safety norms in September 2001, and on international transit of nuclear materials through Romanian space in February 2002.

Nuclearelectrica S.A., who is managing the nuclear facility, is owned by the Romanian Government.

[Enerdata, EU Commission, IAEA]

Table: Electricity production balance in 2007

Electricity grid

Romania has an extensive interconnected power transmission and distribution network with an overall length of about 600,000 km, and a total transformer capacity of about 172,000 MVA. The national grid operates on 750 kV, 400 kV, and 220 kV for transmission and 20 kV, 10 kV, 6 kV, 1 kV and 0.4 kV for distribution.

Transelectrica (Romania) is member of UCTE and observer in CENTREL.

As a limited member of the Interconnected Power System-Central Dispatching Organization, Romania has strong interconnections with Ukraine and Bulgaria, substantial interconnections with the former Yugoslavia, and weaker links to the Republic of Moldavia and Hungary. The Romanian grid operator, Transelectrica, is currently cooperating with the electric power systems of Greece and the former Yugoslavia (both UCPTE members) and is working to become more fully integrated into the UCPTE system. The transmission network is interconnected with those of neighboring countries -- by 750 kV (4,000 MWe capacity), 400 kV (2,500 MWe capacity), and two 110 kV tie-lines with Ukraine; a 400 kV line with Hungary (currently operating at 220 kV, with a planned capacity of 1,200 MWe); 750 kV (4,000 MWe capacity), 400 kV (2,500 MWe capacity), and 220 kV (260 MWe capacity) lines to Bulgaria; and one 400 kV (1,200 MWe capacity) and two 110 kV lines with Yugoslavia; and two 110 kV lines with Moldavia. In 2001, Transelectrica received a $51.5 million loan from the European Bank for Reconstruction and Development (EBRD) to upgrade the Romanian transmission system and make it more compatible with the western European power network.

[US DoE]

Oil and Natural Gas

Oil

Romania's oil reserves are estimated at 82 Mt. Oil production has been decreasing since 1997. (2001: 6 Mt) Oil imports have declined from 22 Mt in 1989 to 9 Mt in 2005. The refining capacity has been reduced from 740 000 bl/d in 1992 to 517 000 bl/d in 2005.

With the opening of 15 oil and gas blocks for exploration in 1996, and the influx of western technology, Romanian reserves and production are expected to rise slightly in the coming years.

The share of oil in primary energy consumption is 23 %.

[Enerdata, US DoE]

Gas

Romania's gas reserves are estimated at 394 Gm3. The share of imports from Russia, via a pipeline through Ukraine, is increasing and now accounts for 30 % of the country's consumption.

The share of gas in the country's primary energy consumption has dropped from 45% in 1990 to 35% in 2005.

[Enerdata, US DoE]

Coal

Romania's reserves of coal and lignite are 800 Mt and 2.8 Gt, respectively. Most of these reserves are lignite and sub-bituminous coal, with the largest reserves located in the Jiu Valley. Less than 10% of the coal produced in Romania is bituminous.

The share of coal and lignite in the country's primary energy consumption is 24 %.

[US DoE, Enerdata]

Renewable energy

The institutional framework for the promotion of measures to encourage the efficient use of energy was created in 1990 with the founding of the Romanian Agency for Energy Conservation (ARCE). The powers of this agency were strengthened in 2000 with the adoption of Law 199/2000 regarding the efficient use of energy, this law being amended and supplemented by Law 56/2006.

Provisions for public support are in place, but renewable energy projects have so far not been financed.

Hydropower

Current Status

Nearly all RES-E in is generated from hydro power. Production from large-scale hydro power totalled 15,855 GWh in 2004. The share taken up by small-scale hydro power is moderate, with 658 GWh in 2004. The average growth rate of hydro power is small (on average 5% per year between 1997 and 2004), despite a large potential (6 TWh smaller than 10 MW). Around 5000 locations in Romania are favorable for small HPPs.

In 2006, the majority of all RES-E was generated through large-scale hydro power. To a large extent, the high potential of small-scale hydro power has remained untouched.

[Enerdata, Reeep, EBRD]

Bioenergy

Current Status of Biomass Energy

Romania is covered by 40% of agricultural land and 27% of forest. The share of biomass in the total energy of the country was 10.94% in 1998. Currently, biomass is used only for heating purposes, direct burning for cooking and hot water preparating consuming the largest share. District heating systems are the most immediate and low-cost application. About 95% of the biomass currently used is firewood and agricultural waste, the rest is wood waste from industrial processes: The average installed capacity in sawmills is 3.3 MWth. Biogas has been used in the past to a larger amount. Today, the number of large pig and cattle units is decreasing.

Legislation on Biofuels was transposed into national legislation in December 2005. In 2007 the first Romanian biofuel production facility was installed. The factory in Vaslui will have a production capacity of 25,000 tonnes a year. The country is now taking first actions in oder to fulfil the regulations given by the European Union, to replace 5,75 % of petrol and diesel with biodiesel.

Biomass Energy Resource

Potential Biomass is regionally distributed over Romania. Fuelwood and wood waste is mostly found in the Carpathians and Subcarpathians, while agricultural waste is available in the South Plain and Moldavia, biogas in the South and Western plains. In their Renewable Energy Resource Assessment for Romania, the EBRD estimates the South Plain region most promising for the utilization of agricultural waste, and the Carpathian and Subcarpathian mountains as most promising for the development of district.-heating plants from firewood and wood waste in a range of 1-6 MWth.

Wind energy

Current Status of Wind Energy

Romania has currently an installed capacity of wind energy of 3 MW. The Romanian government has a target to enlargen the capacity up to 200 MW by 2010. A country wide wind atlas was issued by the "Energy Research and Modernizing Institute" (ICEMENERG), in 1993. It indicates wind speeds of 4.5 - 11.5 m/s at 50m height in various areas, notably off-shore.

Wind Energy Resource Potential

The country is considered to have the highest wind energy potential in the region. Large areas with wind speeds over 11m/s are identified. Incentives would be the provisions of the Directive 77 and the National Energy Sector Strategy.

[EBRD]

Solar energy

Current Status of Solar Energy

Starting 1979, a large scale program for various solar applications has been implemented: solar domestic hot water systems for hotels at the Black Sea, for apartment blocks, solar drying for agricultural products, solar cooling for fish preservation. However, due to poor quality, lack of maintenance and a stop of activities with the market reforming in 1990, only 10% of the installed 1 Mio m2 of collector area is still in operation. Currently, some demonstrative capacities, under 1 kW are installed.

Solar Energy Resource Potential

The average solar radiation in Romania ranges from 1,100 to 1,300 kWh/m2 per year. A solar radiation map has been issued by the National Institute of Meteorology and Hydrology. There are good opportunities for solar energy development, and experiences from the past can be used. In the Renewable Energy Resource Assessment, the EBRD estimates domestic solar water heating for public buildings and hotels, passive solar systems, and stand alone systems for sites far from the grid, to be the most promising applications.

[EBRD]

Geothermal Energy

Current Status of Geothermal Energy

Geothermal resources have been used in Romania since the 1960s. At present, 137MWt are used from 61 active wells producing hot water in the temperature range of 55-115°C. The geothermal water resources are public property according to the Romanian Constitution.

Table: Present use of geothermal resources in Romania

[Source: EBRD, REEEP]

There is a Romanian Geothermal Resources Map in the European Commission's Blue Book on Geothermal Resources.

Geothermal Energy Resource Potential

The proven reserves, including wells already drilled, are about 200 PJ for 20 years. Opportunities for geothermal development in Romania are good, but only for thermal applications. The EBRD in the Renewable Energy Resource Assessment consider application in existing district heating systems in cities nearby the geothermal resources, and new district heating schemes, and industrial and agricultural uses, as relevant.

Support Mechanisms and feed-in conditions for electricity from renewable energy sources

For the promotion of the production of electricity from Renewable Energy Sources, a system of Green Certificates is in place, including a purchase obligation for distribution companies and the obligation to fulfil an annual quota of purchased green electricity. At the end of each year, distribution companies have to deliver a certain amount of "Green Certificates" corresponding with the annual quota. Since October 2005, the certificates are being traded at the newly created electricity market administrator OPCOM. According to the Energy Law, all producers of electricity have equal access to the network. The tariffs are regularly adapted to the actual production costs by the Romanian Regulator, ANRE .

For the period 2005-2012, the annual maximum and minimum value for Green Certificates trading is 24 Euro/certificate, respective 42 Euro/certificate, calculated at the exchange course established by the Romanian National Bank, for the last working day of the December of the previous year.

[Annual Quota for Green Electricity Certificate System. Source: OPCOM]

The Romanian government has encouraged foreign investment in hydropower through Hydroelectrica, the state-owned hydropower producer.

A minor amount of renewable energy besides hydropower has made its way into Romania's electricity generation mix. Biomass and waste incineration have been in use in Romania for many years, though not in any significant-sized generating facility. The Romanian government is planning to implement a new program for increasing the use of renewable energy that includes photovoltaics, wind energy, biomass, and geothermal energy.

The promotion of electricity produced from renewable energy sources in the internal electricity market is underlined in the provisions of the GO 63/1998 regarding the electricity and heat and also in the provisions of the Electricity Law no. 318/2003. Therefore in chapter V of Law 318/2003 named “Renewable energy sources” definitions, technical utilization and marketing conditions and facilities are announced:

• Art. 51.: Based on this Law, the competent authority (ANRE) will regulate the technical conditions for access to the electrical network and the technical conditions for marketing the electricity and heat produced in cogeneration from renewable sources.
• Art. 52.: Based on technical and economical studies, the development and utilization of renewable energy sources are stimulated, the facilities being granted by Government decision as a result of a proposal made by the competent authority (ANRE). The promotion of renewable energy resources it is also provided by the Energy Efficiency Law no. 199/2000.

In Romania, an indirect stimulating mechanism for utilization of renewable energy sources is regulated but the schemes for direct subvention of prices for which the producers of electricity from renewable sources are selling their product are lacking.

Therefore the Order no. 92/2002 regarding the application of Competition Council regulations, issued on the base of Law no. 143/1999 regarding the state support” adopted the “Regulation regarding the state support for environmental protection”.

In chapter 3 of this act the general conditions for authorization of state support for investments in environmental protection are provided:

• "Investments for promoting the renewable energy sources are assimilated to the environmental protection investments achieved as a result of lacking compulsory national standards. The measures aimed to support the renewable energy sources represent one of the long-term targets that have to be especially encouraged. The base rate of support for investments made for this energy form represents 40% from the eligible costs. In the case of production capacities of energy from renewable sources that cover entirely the energy consumption of a community, the investments made can get a bonus of 10% over the base rate of 40% from the eligible costs. When the needful character of the investments is proved the supplying authority can support the investments for producing energy from renewable sources to up to 100% from the eligible costs. The respective installations will no longer benefit from other type of support."
• "In the case of renewable energy sources the eligible costs of investment are usually the additional costs taken by the economic body in comparison with a conventional energy installation with the same energy production capacity."