Romania’s electricity sector has more financing opportunities than ever, so many projects are being prepared to develop new production capacities. In this context, a project aimed at exporting large amounts of energy is also taking shape: a 5,000 MW high-voltage direct current (HVDC) interconnector that will cross Romania from east to west by 2030. All this development is taking place in the absence of a national energy strategy, which can create conditions for the chaotic evolution of the energy sector.

• On the one hand, it increases the power generation capacity while reducing consumption. This means a growing need for exports. At the moment, the export capacity is about 3,000 MW. This is how the 5,000 MW high-voltage direct current (HVDC) interconnector project appeared, for which meetings are often held between representatives of the management of Transelectrica, Taqa, Meridiam, Fluor and E-Infra.
• On the other hand, as HotNews.ro has already shown, the need for natural gas consumption may double, which means an increase in the need for imports. This is in the conditions when, at the EU level, gas is considered a transition fuel to green energy.
• Simply put, we will have too much electricity to export and too little gas to import.

No energy strategy project ever ends

Romania does not have a modern energy strategy, the last one was implemented in 2007, which is far beyond the vision and the latest European regulations. There were several attempts at the level of the Ministry of Energy to create a national strategy, but they did not go beyond the design stage, the latter was blocked by the Ministry of Natural Resources. There is not a single official of the Ministry of Energy who, when he has the opportunity, does not talk about the need for a strategy, but there is an uncertainly long way to its implementation.

“I said that Romania is on the threshold of an energy revolution – and I believe it. This requires, on the one hand, a vision – and we have it. This is defined in the National Integrated Plan for Energy and Climate Change (PNIESC) and in parallel we are working on an energy strategy for Romania, as they are not mutually exclusive. On the contrary, the European rules tell us that to update the PNIESC or create a PNIESC, we have to start with a strategy. This is the natural order of things,” Sebastian Burdukha recently said at the “Energy in the Socket” conference, reports Agerpres.

Despite the lack of a national strategy, government officials talk about Romania becoming an energy hub for Europe. “The 5,000 MW High Voltage Direct Current (HVDC) Interconnector will enable the evacuation of a very large amount of green energy, giving Romania and the region the opportunity to use its important energy resources in the Black Sea region, and Europe – one of the largest sources of green energy. energy sources through the corridor Romania – Hungary – Austria – Germany. Thanks to the energy resources of the Black Sea Basin and the interconnections with the countries bordering the Black Sea, Romania will become an energy center for the whole of Europe,” Minister Burduja said in June.

From photovoltaic panels on houses to wind turbines in the Black Sea and large gas-fired power plants

But what, according to the minister, does the energy revolution mean? At a conference in Berlin last Friday, he spoke about contracts for difference that will be auctioned by the end of the year, targeting projects related to onshore wind and solar power generation.

The Contracts for Difference (CfD) scheme will involve two rounds of tenders, the first at the end of the year, each with separate bids for the respective power generation technologies – onshore wind and solar PV – with a total capacity of 5,000MW.

Burduja also talked about offshore wind energy, legislation that will be adopted by the government in the next period and then sent to the parliament. “By the end of this year, we should have a law on offshore wind energy and its potential in the Black Sea,” Burduya said.

By 2035, Romania could have 3 GW (3,000 MW) of wind energy projects in the Black Sea, according to the reasoning accompanying the draft law on the use of offshore wind energy.

The minister also said that “we will have additional nuclear reactors.” We remind you that Romania, through the RoPower project company founded by Nuclearelectrica and Nova Power & Gas (part of the E-Infra group), is the first country in Europe and the second in the world after the USA to implement SMR Technology from NuScale with an installation of 6 modules and with an installed capacity of 462 MW.

But apart from these projects, there are many others that will receive money from the PNRR and the Modernization Fund. More than €16 billion could be made available from the Modernization Fund until 2030 and €1.62 billion, excluding VAT, from the PNRR, an amount to be used by 30 June 2026. The money is used, in particular, to ensure a green transition, promoting the production of electricity from renewable sources, energy efficiency and new technologies.

Over the last year and a half, the energy sector has started to be flooded with investments in renewable energy sources, especially in the field of photovoltaic energy, even through the installation of solar panels. In fact, energy distributors even complain that the avalanche of connections could create an imbalance in a power grid that is not developed enough to suddenly receive too much power. The phenomenon of installation of solar panels by consumers has reached such a scale that next year we could have an installed capacity of 2000 MW, almost as much as three nuclear reactors from Chernavoda. The authorities are already thinking about setting a limit value for the power of photovoltaic panels installed by consumers.

In the full avalanche of green energy projects, there are also those that will use a transition fuel: natural gas. More precisely, large capacity gas power plants are being built in Romania. The new thermal power plant in Mintia, which will be built by investor Mass Global Energy Rom, will have 1,500 MW. The 430MW Iernut plant is due to be completed by December 2024 by Spain’s Duro Felguera. The Turceni and Işalnița stations will have 475 MW and 850 MW respectively, projects included in the restructuring plan of the Oltenia power complex, which is to phase out coal-based energy production.

How gas demand is growing, although European policy is aimed at a long-term decline

The construction of large gas-fired power plants, the resumption of chemical fertilizer production and the expansion of distribution networks indicate that gas consumption may double in the next few years.

Given that gas has been declared a transition fuel, we expect investment in long-term gas-intensive capacity to be lower. On the other hand, powerful gas power plants are being built and gas networks are being expanded in Romania.

Ion Sterian, CEO of Transgaz, has repeatedly said that from 2027-2028 consumption needs will double to around 20 billion cubic meters, and that there will not be enough gas from the Black Sea to cover it. Thus, Romania will be forced to import gas, most likely through LNG terminals in Turkey and Greece.

In 4-5 years, even gas from the Black Sea will not satisfy Romania’s needs, Ion Sterian said recently at the “Romanian Energy Symposium – SIREN 2023”. Consumption is approximately 11-12 billion cubic meters per year, but to these volumes will be added those required by gas power plants. Ion Sterian says that 2.5 billion cubic meters will be needed for Mintia, about 1 billion cubic meters for Iernut, and about 1.5 billion cubic meters for Ishalnica and Turcheny.

In addition, the Azomureș chemical plant recently resumed fertilizer production at 50% of its total capacity. In a year, under normal operating conditions, the plant can consume about 1.2 billion cubic meters.

Another 3-4 billion cubic meters will be needed for new gas connections to some localities after the network expansion, especially through the government’s Anghel Saligny program.