The high volatility of the energy market and the lack of stability of the sector are the biggest challenge for the companies that are active in the energy field. That is why a stable regulatory framework is absolutely critical, according to Tomasz Sek, Co-Founder of R.Power. The company will start its first investments in Romania and plans to have „triple digit megawatts” under construction in 2024.

”I think the key issue that we are facing when doing renewable business in all those markets and (…) it’s the stability of the system. There is so much volatility right now in  the energy markets”, he said. This could be reduced by the contract for difference scheme and the company is waiting for the Romanian authorities to finalize the legislation. Sek thinks that if the contract for difference mechanism is “designed correctly,” it could reduce risks, make green energy cheaper for consumers, and speed up the use of more renewable energy in the country.

„A well-designed contact for difference scheme is a very good one for the private investors because it is guaranteed by the government. I think this solution is good to form the financing perspective, it is good for the institutional investor but it is also good for the small and larger investors”, he added.

„Diversification is the name of the game” and companies need to diversify and not rely only on one supplier or one technical solution when deploying large number of assets. This diversification can be achieved using wind, solar and storage assets.

Also, increasing investments in the green energy projects have to make sure that energy provided is affordable and delivered in a cost-effective way. But in order to offer cheap energy to users, companies must take on less risk. The government and other decision-makers are responsible for lowering these risks.

Tomasz Sek was one of the guests in a top-level conversation on the financing opportunities and projects that the Romanian energy sector presents within the remit of the 3SI initiative, in a side-event organized by Energynomics and the Romanian Energy Center Association in the margin of the 8th Three Seas Initiative Summit in Bucharest.