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Renewable energy – Energy Country Profile

Renewable Energy

According to the 2016 Energy Strategy for Romania, conventional fuels, including nuclear energy, will continue to play an important role in the energy sector for the next decade. However, the contribution of renewable energies will also be expanded to strengthen energy security.

Renewable energy capacities have been increasing dramatically since 2010. Solar installations have reached an installed capacity of approximately 1.4 GW after a surge in 2013 (increase of 973 MW) and in 2014 (increase of 271 MW); however, growth slowed down in 2015 and 2016 due to unfavourable support mechanisms. Growth in the wind energy sector also followed a similar pattern: capacity doubled in 2011 and 2012 to reach a total installed capacity of 1.8 GWh after the compeletion of the Fantanele-Cogealac wind park. This growth was followed by an additional boom of 53% to reach 2.8 GW in 2013. Currently, the production of new wind installations has drastically slowed down. The current installed wind capacity is 3 GW. Renewable power generation has also experienced rapid growth from 1 TWh (year 2011) to 11 TWh (year 2016).

According to the national energy and climate plan of Romania for the time horizon 2021 to 2030, investments should be primarily made in wind energy and photovoltaics. The expansion of electricity generation in the period from 2020 to 2030 in the wind area of approx. 565 ktoe (6.57 TWh) to approx. 1005 ktoe (11.69 TWh) will be expanded and in the PV area from around 170 ktoe (1.98 TWh) to approx. 633 ktoe (7.36 TWh).

Installed renewable capacity is expected to grow due to plans of Hidroelectrica to invest over a billion USD in hydropower capacity between 2015 and 2020. The company is also expected to invest about 305 million USD in the refurbishment of existing hydropower plants to increase efficiency.

The government is currently considering scrapping the 1,000 MW Tarnita-Lapustesti pumped-storage power project due to high investment costs and replacing it with small hydropower plants instead.

Since 2018, homeowners that install PV systems are eligible to receive up to 90% of the cost (up to a maximum of RON 20 000, or about €4 300). The government introduced a net metering system for PV installations and gave refunds to household PV projects over 3 kW when it launched the Casa Verde Fotovoltaice plan in 2020. (fiscal incentives granted for projects up to 27 kW and the possibility to sell power surplus to distributors for projects up to 100 kW). In 2021, this plan underwent a modest modification. (Source: ENERDATA)

Romania has significant potential for renewable energy, particularly in the areas of wind, solar, hydro, and biomass. According to the latest data from the International Renewable Energy Agency (IRENA), Romania's share of renewable energy in total final energy consumption was around 24.5% in 2019.

To support the development of renewable energy, Romania has implemented various measures, including feed-in tariffs, green certificates, and tax incentives for investors. The country has set a target of increasing the share of renewable energy in its gross final energy consumption to 27% by 2030.

Wind power is the largest source of renewable energy in Romania, with a total installed capacity of over 3 GW. Solar power is also growing rapidly in the country, with a total installed capacity of around 1 GW. Hydro power is another important source of renewable energy in Romania, with a total installed capacity of over 6 GW. Finally, biomass and biogas are also being increasingly used for electricity generation and heating.

Overall, Romania has significant potential for further development of renewable energy sources and is committed to increasing their share in its energy mix.

Last update: 07 2023