Romania rebooting its renewable ambitions means investment opportunities will follow

In the second of a series of three articles from an ongoing research project, entitled “Energy Transition Business and Investment Opportunities for Eastern Europe and the Balkans”, being conducted by Energy Investment Management, the focus shifts to Romania.

The report investigates and explores Romania’s existing renewable energy ecosystem and the government’s development plans and policy-making to create a blueprint for the investment opportunities for businesses which may be pursuing low-carbon diversification of their portfolios or looking to engage in new activities or enter new markets.

The report was prepared by Denisa Kasa, who is an Investment Advisor at Energy Investment Management. She not only conducted a number of interviews but also travelled to Romania for in-person meetings with professionals working for various companies and NGOs, including CMS Romania, Enel Romania, the Romanian Wind Energy Association (RWEA), the Polytechnic University of Bucharest and Banca Comercială Română.to attain the necessary information.

In addition, to support the shared insights and information, Denisa conducted further research by reviewing recent articles and reports from a variety of organisations, including IRENA, the European Biogas Association and WindEurope.

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Key findings on Romania's investments opportunities:

• The introduction of a Green Certificate scheme in the mid-2000s, brought in a significant investment wave, particularly in solar PV and wind.
• In 2013, however, amendments to that support scheme saw the new project pipeline halted abruptly
• Government rhetoric around introducing new support schemes and mechanisms for greater renewable energy development is welcome, but genuine action is now required to satisfy its EU Climate commitments.
• The ambition of the government to reach an installed capacity of 3.7GW of solar PV by 2030, sends out a very positive signal to investors.
• There is a real expectation that Romania will see a new investment wave in wind, with offshore wind, in particular, presenting exciting opportunities for investors and businesses.
• For hydroelectric power, the focus over the coming years is expected to be on the refurbishment and modernisation of the country's existing fleet.
• Bioenergy, in particular biogas projects, are expected to enjoy a boost through various financing programmes being introduced by the government.
• With its proximity to Ukraine, the impact of the ongoing war on future energy infrastructure is unknown, but it appears foreign investors in Romania are holding their nerve and maintaining their pre-agreed positions regarding the future projects they've invested in.

You can also download Denisa's 'Poland’s low-carbon ambitions offer clear investment and business opportunities' report here.