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Energy policy – Energy Country Profile

Energy Policy

Integrated National Energy and Climate Plan (INECP)

In order to minimize the reporting burden for European Union Member States, the European Commission has come up with a new governance regulation, which states that MS have to lay out their climate and energy targets, policies and measures in their Integrated National Energy and Climate Plans (INECPs). Romania's National Energy and Climate Plan includes several key elements, including reducing energy poverty, accelerating the electrification of transport, improving energy security and taking a holistic approach to energy, economy, environment and climate change. In this context, Romania plans to phase-out old existing power plants by replacing them with newer, more efficient and low-emission options. At the same time, implementing further energy efficiency measures in all sectors will further improve Romanian energy security. In Romania's INECP, the country estimates that 30.7% of its energy consumption will come from renewable energy sources. The plan projects that the RES share in three major sectors will progress as following between 2020 and 2030:

  • 2020: Electricity 41%, Heating & Cooling 25.2% and Transport 10%
  • 2025: Electricity 45.8%, Heating & Cooling 29.3% and Transport 10.1%
  • 2030: Electricity 49.4%, Heating & Cooling 33% and Transport 14.2%

Energy Strategy

The Romanian Energy Strategy 2016-2030 (Outlook to 2050), published by the Ministry of Energy on 15 November 2016, has five key strategic goals, namely:

  • energy security,
  • competitive energy markets,
  • clean energy,
  • good governance,
  • reduction of energy poverty and better, and
  • protection of vulnerable consumers.

The key strategic goals are implemented by means of 25 objectives, for which priority actions are defined for the short, medium and long term. This document will form the basis for future scenarios for the development of the Romanian energy system, as well as energy policy proposals that will be adopted in the next 20 years. The strategy reaffirms the important role of conventional fuels (nuclear energy, oil, natural gas and coal) for the decades to come. However, the strategy also mentioned that the contribution of renewable energies will be expanded. By 2030, the Strategy envisages a slight increase in hydropower capacity after the completion of the projects that are already under construction. Furthermore, Romania aims to capitalise on its natural resource potential by investing in RES investments. A strong focus will be placed on addressing the important role of biomass in household heating in rural areas.

Some key areas of strategic intervention:

  • renewal (through refurbishments and replacements) of the ageing electricity generation capacity fleet,
  • development of natural gas infrastructure and domestic gas production,
  • maintaining a prevalent role of biomass in household heating,
  • development of high-efficiency cogeneration and modernization of district heating systems, and
  • increasing the energy efficiency of dwellings as a solution for the reduction of energy poverty.

The Romanian Energy Strategy also identifies new avenues for development that will help Romania take advantage of the opportunities to benefit from the global energy transition. These include turning Romania into a manufacturing centre for the energy transition, developing smart grids and facilitating the transition from consumers to prosumers, promoting electric and hybrid vehicles, and investing in smart buildings.  (Source: Romanian Ministry of Energy).

Last update: 07 2023