Romania - EnergyRomania - Energy
The energy sector is a priority for Romania’s economy and security policy. The country is slowly shifting from coal-to-gas and onshore fields to hydro and other renewable energies. Romania’s oil and gas deposits could dramatically increase as a result of recently discovered oil and gas deposits in the Black Sea basin.
Energy mix February 2019
In November 2018, the Romanian Government approved the National Energy Strategy (NES) 2016-2030 with prospects for 2050 with the following strategic investments:
The main electricity generation companies are state-owned: Cernavoda nuclear power plant (Nuclearelectrica), 208 hydropower plants – 6.4 GW installed capacity and 5 pumping stations with 91.5 MW (Hidroelectrica https://www.hidroelectrica.ro/aga18/2808/Rap%20Adm%20IFRS%20Standalone%202017%20v2.pdf), and 10 coal-fired power plants with installed functional capacity of almost 5 GW (Ministry of Energy, Apr. 2018).
Transmission
The electricity transmission system in Romania and the interconnection system with its neighboring countries is managed and operated by the majority state-owned Transelectrica. They also manage the market operation, the grid and market infrastructure development, and the security of the national system. The energy infrastructure capacity is 2.3 GW commercial import and 1.55 GW commercial export (http://www.transelectrica.ro/en/web/tel/home).
Supply & Distribution
In Romania, there are five big electricity suppliers (E.On, CEZ, ENEL Energie, Electrica, and ENEL Energie Muntenia) covering different regions (https://www.anre.ro/ro/energie-electrica/consumatori/lista-furnizori).
Nationally, there are 159 licensed electricity suppliers and 122 licensed gas suppliers (http://licitatii.furnizorenergie.ro/furnizori/).
In 2017, 9.3 million users were connected to the power grids through the eight distribution system operators (DSO), up 0.8% compared to 2016 (5.1 million in urban areas, and 4.2 million in rural areas) (DSO: e-Distributie Muntenia, e-Distributie Banat, e-Distributie Dobrogea, Distribuție Energie Oltenia, Delgaz Grid, SDEE Muntenia Nord, SDEE Transilvania Nord, SDEE Transilvania Sud).
Romania is the largest producer of oil and gas (O&G) in Central and Eastern Europe and has the potential to dominate the European O&G market as a result of new discoveries in the Black Sea.
The first Black Sea Oil & Gas (BSOG, owned by Carlyle Equity Fund) offshore gas development in the Black Sea (Ana and Doina fields) was discovered in 2007 and 1995, 120 km offshore, in the XV Midia Shallow area in 70 m of water (320 bcf of P50 contingent gas resources). BSOG received regulatory approval in early 2019 for its offshore Black Sea gas project, one of several steps still required to start production in Q1 2021. ExxonMobil-OMV Petrom stated that required conditions are not yet in place for a final investment decision on its offshore Black Sea gas project. In 2017, the top three importers of petroleum products were Rompetrol Rafinare, Petrotel Lukoil, and OMV Petrom, covering a total market share of 83.88%. Natural gas production in Romania was provided by six producers: Romgaz SA, OMV Petrom SA, Amromco Energy SRL, Raffles Energy SRL, Foraj Sonde SA, and Stratum Energy LLC.
LNG (Liquified Natural Gas)
Romania’s priority is to complete the BRUA pipeline and initiate its own gas production in the Black Sea, as well as develop AGRI (Azerbaijan-Georgia-Romania Interconnector) to offer the EU an alternate route for sourcing Azeri gas.
Romania’s natural gas producer RomGaz has planned to build the first LNG terminal in the Black Sea at Constanta port since 2010. Romania’s project was approved by the EC and is on track to be implemented by 2024-2026 as part of AGRI. The project will allow for LNG imports from Azerbaijan through Georgia and onwards over the Black Sea to Romania; Hungary has also joined the project. Along with the LNG terminal in Constanta, another terminal is set to be built in Georgia. The total project cost is forecasted at €1.2 to €4.5 billion for a capacity of two to eight billion cubic meters of gas per year. This project presents a huge opportunity for Romania to become an important transit hub for Europe, in line with the Government of Romania’s Energy Strategy priorities. Liquefied natural gas, being cheaper and releasing fewer emissions than black oil, has been identified by the EC as the most favorable alternative fuel to aid in reducing emissions related to river traffic in Europe.
Romania’s proposed LNG project has been incorporated into the larger AGRI LNG project since 2010. Along with RomGaz, SOCAR (Azerbaijan), Georgia’s Oil and Gas Corporation, and MVM (Hungary) are collaborating in the AGRI project. AGRI currently lacks sales contracts by firms who are willing to invest into building the expensive infrastructure, thus creating significant export and investment opportunities for American companies.
In the government’s Energy Strategy for 2016-2030 published by the Ministry of Energy, the second central area identified for strategic intervention was the development of infrastructure and the securing of natural gas supply (including liquified natural gas). Romania’s energy strategy confirms that natural gas will continue to play a strong role in the energy mix for decades to come. Developing projects to diversify access to resources, as well as improving connectivity and competitiveness, is crucial for Romania’s energy security (Romania’s Strategic Guide for National Defense 2015-2019).
Romania has extremely large potential for LNG developments in the Black Sea. With infrastructural investments and the development of competitive market mechanisms, Romania can truly succeed in becoming a major European LNG supplier and transport hub.
Nuclear Sector
According to NES, nuclear energy will continue to play an important role in the energy mix for decades to come. Romania currently has one nuclear power plant, Cernavodă, with two operational units and two more under construction (pressurized heavy water reactors of CANDU 6 design - CANadian Deuterium Uranium), each with a design gross output of 706.5 MWe. The two reactors in operation supply approximately 17% of total energy production.
Coal Sector
In November 2018, the estimated lignite resources amounted to 690 mln. T (124 mln. Tep), as stated in the NES .
The NES confirms the role of traditional fuel such as oil, natural gas, coal, and uranium in the energy mix. Romania currently produces pit coal and lignite and maintains several coal-fired powerplants – all needing upgrades in the immediate future.
Renewable Energy Sector
Romania is seeking to derive more of its energy needs from renewable sources. Romania was seen as a fast-growing market for wind energy in the Southeast European region, with installed wind generation capacity skyrocketing from as little as 7 MW in 2007 to 1,941 MW in 2018.
In April 2019, approximately 60% of generated power had renewable resources. Wind energy ranked 1st with >27%, followed by hydro power – 26%, coal generated power – 20%, nuclear – 17%, fossil fuel – 7.1%, photo-voltaic – 3.3%, and biomass – 0.6% (www.transelectrica.ro).
Power production & distribution - American companies can find opportunities (equipment, know-how, technologies, design and construction, installation, upgrading, maintenance, and repairs) in: electrical power systems, products and services related to energy efficiency, smart grid, power distribution, power and gas storage, and refurbishment/construction of power generation capacities.
O&G - BRUA – The major project to be finalized in 2019 is a strategic gas pipeline project through Bulgaria-Romania-Hungary and Austria, valued at €800 million/$880 million. BRUA Phase 1 is currently (May 2019) on schedule according to the Minister of Economy. BRUA phase 2 will begin after the opening of the Open Season Procedure, currently underway. The deadline for the submission of tenders is May 30th (Phase 2 Operation start: 2020).
- Onshore and Black Sea offshore fields development, operation, and maintenance: the discovery of new oil and gas reserves in the Black Sea basin offer opportunities for companies with expertise in oil drilling, transmission, refining, and retrofitting existing facilities.
- Black Sea Pipeline Tuzla – Podisor (308.3 km, 1,200 and 1,000 mm nominal diameter, 20 sectioning valves stations, and 10 cathodic protection stations; total estimated value $402.8 mln).
Nuclear – Cernavoda construction of two new CANDU-compatible reactors (2 × 655 MW; total estimated value $5.588 bln.); opportunity under high pressure from Chinese competition.
Trade events:
Romania Petroleum Club events: http://www.petroleumclub.ro/index_en.html
Romania Energynomics Energy events 2019:
https://www.google.com/search?rlz=1C1GCEV_en&ei=crTeXP6yLsSC5wKr4K6ABQ&q=Romania+energynomics+calendar+of+events+2019&oq=Romania+energynomics+calendar+of+events+2019&gs_l=psy-ab.3...11519.12800..13099...0.0..0.189.1427.0j8......0....1..gws-wiz.......0i71.61UdXF3nj-Q&ibp=htl;events&rciv=evn
BLACK SEA OIL AND GAS - Globuc - 23 - 24 Oct 2019
https://www.tradefairdates.com/RoEnergy-M9544/Bucharest.html - April 2020, Bucharest
Ministry of Energy: http://energie.gov.ro/
National Regulatory Agency for Energy: http://www.anre.ro/en
National Agency for Mineral Resources: http://www.namr.ro/home-page/
http://www.anre.ro/ro/energie-electrica/legislatie/metodologii-tarife/distributie-energie-electrica
Transelectrica : http://transelectrica.ro/en/web/tel/home
Romanian Black Sea Titleholders Association: http://rbsta.ro/en/
Romgaz : https://www.romgaz.ro/
Nuclear Agency and for Radioactive Waste : http://agentianucleara.ro/en/
Nuclearelectrica: http://www.nuclearelectrica.ro/
Petroleum Club of Romania: http://www.petroleumclub.ro/
Romania Energy Center (ROEC): www.roec.biz
Romanian Association of Drilling Contractors: http://www.acfr.ro/
Romanian Association of Petroleum: http://www.arpetrol.ro/
Employers Federation of Companies Associations in Energy Utilities: https://www.acue.ro/
http://licitatii.furnizorenergie.ro/furnizori/
Romanian Photovoltaic Industry Association: http://rpia.ro/
Romanian Wind Energy Association: http://rwea.ro/
Romanian association for biomass and biogas: http://www.arbio.ro/en/#all
EnergyNomics http://www.energynomics.ro
Contact Information
Name: Mihaela Dodoiu
Email: mihaela.dodoiu@trade.gov Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
Energy mix February 2019
| % | MWh/h | |
| Hydro | 19 | 1,486 |
| Coal | 23 | 1,821 |
| Nuclear | 17 | 1,323 |
| Wind | 9 | 741 |
| Hydrocarbons | 23 | 1,841 |
| Solar | 8 | 608 |
| Biomass | 1 | 61 |
| Total | 100.00 | 7,879 |
- Reactor-groups 3+4, Cernavoda Nuclear Power Plant;
- New 600 MW Power Plant at Rovinari;
- Hydro Power Plant with pumping accumulation at Tarnita-Lapustesti;
- Hydro-Complex at Turnu Magurele-Nicopole.
The main electricity generation companies are state-owned: Cernavoda nuclear power plant (Nuclearelectrica), 208 hydropower plants – 6.4 GW installed capacity and 5 pumping stations with 91.5 MW (Hidroelectrica https://www.hidroelectrica.ro/aga18/2808/Rap%20Adm%20IFRS%20Standalone%202017%20v2.pdf), and 10 coal-fired power plants with installed functional capacity of almost 5 GW (Ministry of Energy, Apr. 2018).
Transmission
The electricity transmission system in Romania and the interconnection system with its neighboring countries is managed and operated by the majority state-owned Transelectrica. They also manage the market operation, the grid and market infrastructure development, and the security of the national system. The energy infrastructure capacity is 2.3 GW commercial import and 1.55 GW commercial export (http://www.transelectrica.ro/en/web/tel/home).
Supply & Distribution
In Romania, there are five big electricity suppliers (E.On, CEZ, ENEL Energie, Electrica, and ENEL Energie Muntenia) covering different regions (https://www.anre.ro/ro/energie-electrica/consumatori/lista-furnizori).
Nationally, there are 159 licensed electricity suppliers and 122 licensed gas suppliers (http://licitatii.furnizorenergie.ro/furnizori/).
In 2017, 9.3 million users were connected to the power grids through the eight distribution system operators (DSO), up 0.8% compared to 2016 (5.1 million in urban areas, and 4.2 million in rural areas) (DSO: e-Distributie Muntenia, e-Distributie Banat, e-Distributie Dobrogea, Distribuție Energie Oltenia, Delgaz Grid, SDEE Muntenia Nord, SDEE Transilvania Nord, SDEE Transilvania Sud).
Leading Sub-Sectors
Oil & GasRomania is the largest producer of oil and gas (O&G) in Central and Eastern Europe and has the potential to dominate the European O&G market as a result of new discoveries in the Black Sea.
The first Black Sea Oil & Gas (BSOG, owned by Carlyle Equity Fund) offshore gas development in the Black Sea (Ana and Doina fields) was discovered in 2007 and 1995, 120 km offshore, in the XV Midia Shallow area in 70 m of water (320 bcf of P50 contingent gas resources). BSOG received regulatory approval in early 2019 for its offshore Black Sea gas project, one of several steps still required to start production in Q1 2021. ExxonMobil-OMV Petrom stated that required conditions are not yet in place for a final investment decision on its offshore Black Sea gas project. In 2017, the top three importers of petroleum products were Rompetrol Rafinare, Petrotel Lukoil, and OMV Petrom, covering a total market share of 83.88%. Natural gas production in Romania was provided by six producers: Romgaz SA, OMV Petrom SA, Amromco Energy SRL, Raffles Energy SRL, Foraj Sonde SA, and Stratum Energy LLC.
LNG (Liquified Natural Gas)
Romania’s priority is to complete the BRUA pipeline and initiate its own gas production in the Black Sea, as well as develop AGRI (Azerbaijan-Georgia-Romania Interconnector) to offer the EU an alternate route for sourcing Azeri gas.
Romania’s natural gas producer RomGaz has planned to build the first LNG terminal in the Black Sea at Constanta port since 2010. Romania’s project was approved by the EC and is on track to be implemented by 2024-2026 as part of AGRI. The project will allow for LNG imports from Azerbaijan through Georgia and onwards over the Black Sea to Romania; Hungary has also joined the project. Along with the LNG terminal in Constanta, another terminal is set to be built in Georgia. The total project cost is forecasted at €1.2 to €4.5 billion for a capacity of two to eight billion cubic meters of gas per year. This project presents a huge opportunity for Romania to become an important transit hub for Europe, in line with the Government of Romania’s Energy Strategy priorities. Liquefied natural gas, being cheaper and releasing fewer emissions than black oil, has been identified by the EC as the most favorable alternative fuel to aid in reducing emissions related to river traffic in Europe.
Romania’s proposed LNG project has been incorporated into the larger AGRI LNG project since 2010. Along with RomGaz, SOCAR (Azerbaijan), Georgia’s Oil and Gas Corporation, and MVM (Hungary) are collaborating in the AGRI project. AGRI currently lacks sales contracts by firms who are willing to invest into building the expensive infrastructure, thus creating significant export and investment opportunities for American companies.
In the government’s Energy Strategy for 2016-2030 published by the Ministry of Energy, the second central area identified for strategic intervention was the development of infrastructure and the securing of natural gas supply (including liquified natural gas). Romania’s energy strategy confirms that natural gas will continue to play a strong role in the energy mix for decades to come. Developing projects to diversify access to resources, as well as improving connectivity and competitiveness, is crucial for Romania’s energy security (Romania’s Strategic Guide for National Defense 2015-2019).
Romania has extremely large potential for LNG developments in the Black Sea. With infrastructural investments and the development of competitive market mechanisms, Romania can truly succeed in becoming a major European LNG supplier and transport hub.
Nuclear Sector
According to NES, nuclear energy will continue to play an important role in the energy mix for decades to come. Romania currently has one nuclear power plant, Cernavodă, with two operational units and two more under construction (pressurized heavy water reactors of CANDU 6 design - CANadian Deuterium Uranium), each with a design gross output of 706.5 MWe. The two reactors in operation supply approximately 17% of total energy production.
Coal Sector
In November 2018, the estimated lignite resources amounted to 690 mln. T (124 mln. Tep), as stated in the NES .
The NES confirms the role of traditional fuel such as oil, natural gas, coal, and uranium in the energy mix. Romania currently produces pit coal and lignite and maintains several coal-fired powerplants – all needing upgrades in the immediate future.
Renewable Energy Sector
Romania is seeking to derive more of its energy needs from renewable sources. Romania was seen as a fast-growing market for wind energy in the Southeast European region, with installed wind generation capacity skyrocketing from as little as 7 MW in 2007 to 1,941 MW in 2018.
In April 2019, approximately 60% of generated power had renewable resources. Wind energy ranked 1st with >27%, followed by hydro power – 26%, coal generated power – 20%, nuclear – 17%, fossil fuel – 7.1%, photo-voltaic – 3.3%, and biomass – 0.6% (www.transelectrica.ro).
Opportunities
Prospects for American companies in the Romanian energy sectorPower production & distribution - American companies can find opportunities (equipment, know-how, technologies, design and construction, installation, upgrading, maintenance, and repairs) in: electrical power systems, products and services related to energy efficiency, smart grid, power distribution, power and gas storage, and refurbishment/construction of power generation capacities.
O&G - BRUA – The major project to be finalized in 2019 is a strategic gas pipeline project through Bulgaria-Romania-Hungary and Austria, valued at €800 million/$880 million. BRUA Phase 1 is currently (May 2019) on schedule according to the Minister of Economy. BRUA phase 2 will begin after the opening of the Open Season Procedure, currently underway. The deadline for the submission of tenders is May 30th (Phase 2 Operation start: 2020).
- Onshore and Black Sea offshore fields development, operation, and maintenance: the discovery of new oil and gas reserves in the Black Sea basin offer opportunities for companies with expertise in oil drilling, transmission, refining, and retrofitting existing facilities.
- Black Sea Pipeline Tuzla – Podisor (308.3 km, 1,200 and 1,000 mm nominal diameter, 20 sectioning valves stations, and 10 cathodic protection stations; total estimated value $402.8 mln).
Nuclear – Cernavoda construction of two new CANDU-compatible reactors (2 × 655 MW; total estimated value $5.588 bln.); opportunity under high pressure from Chinese competition.
Trade events:
Romania Petroleum Club events: http://www.petroleumclub.ro/index_en.html
Romania Energynomics Energy events 2019:
https://www.google.com/search?rlz=1C1GCEV_en&ei=crTeXP6yLsSC5wKr4K6ABQ&q=Romania+energynomics+calendar+of+events+2019&oq=Romania+energynomics+calendar+of+events+2019&gs_l=psy-ab.3...11519.12800..13099...0.0..0.189.1427.0j8......0....1..gws-wiz.......0i71.61UdXF3nj-Q&ibp=htl;events&rciv=evn
BLACK SEA OIL AND GAS - Globuc - 23 - 24 Oct 2019
https://www.tradefairdates.com/RoEnergy-M9544/Bucharest.html - April 2020, Bucharest
IEAS International Electric & Automation Show Bucharest 2019 - Sep 2019
https://www.ccifer.ro/ro/evenimente/agenda/e/event/renpower-romania-2019-the-renewable-energy-power-infrastructure-energy-efficiency-investors-con.html - 6-7 June 2019Web Resources
Ministry of Economy: http://economie.gov.ro/Ministry of Energy: http://energie.gov.ro/
National Regulatory Agency for Energy: http://www.anre.ro/en
National Agency for Mineral Resources: http://www.namr.ro/home-page/
http://www.anre.ro/ro/energie-electrica/legislatie/metodologii-tarife/distributie-energie-electrica
Transelectrica : http://transelectrica.ro/en/web/tel/home
Romania Crude oil reserves, 2010-2019 - knoema.com
Romania Crude Oil Production | 2019 | Data | Chart | Calendar | Forecast
Romania: Oil imports, up by 3.8% in 2017 - Energy World Magazine
Romanian Petroleum Exploration and Production Companies Association: http://www.ropepca.ro/en/articole/ropepca-association-presentation/53/Romanian Black Sea Titleholders Association: http://rbsta.ro/en/
Romania Primary coal production, 1973-2018 - knoema.com
Transgaz: http://new.transgaz.ro/enRomgaz : https://www.romgaz.ro/
Nuclear Agency and for Radioactive Waste : http://agentianucleara.ro/en/
Nuclearelectrica: http://www.nuclearelectrica.ro/
Petroleum Club of Romania: http://www.petroleumclub.ro/
Romania Energy Center (ROEC): www.roec.biz
Romanian Association of Drilling Contractors: http://www.acfr.ro/
Romanian Association of Petroleum: http://www.arpetrol.ro/
Employers Federation of Companies Associations in Energy Utilities: https://www.acue.ro/
http://licitatii.furnizorenergie.ro/furnizori/
Romanian Photovoltaic Industry Association: http://rpia.ro/
Romanian Wind Energy Association: http://rwea.ro/
Romanian association for biomass and biogas: http://www.arbio.ro/en/#all
EnergyNomics http://www.energynomics.ro
Contact Information
Name: Mihaela Dodoiu
Email: mihaela.dodoiu@trade.gov Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.