Wind energy has become a natural presence among the main sources of energy production in Romania. We discussed with Adrian Borotea, vice-president of the Romanian Wind Energy Association, a few days before the conference that RWEA and RPIA organise in Bucharest — RESInvest 2022, 17-18 May (Face Convention Center).
What are the estimates of the wind capacity situation at the end of the year?
The Ministry of Energy announced an increase in the share of renewable energy from 30.7% to 34% in 2030. According to the European Commission’s Fit for 55 package, Romania’s 2030 renewable target should increase to 38 %.
RWEA believes that Romania has wind potential, financially viable, to achieve even more than 38%.
Rising targets, rising prices in electricity markets, the conflict in Ukraine, calls launched through NRRPs, soon for the Modernisation Fund and Just Transition Fund, as well as the interest of banks to finance new renewable energy generation capacities, have a favourable impact on investors, who have started projects, already obtaining Technical Connection Notices (ATRs) for a total wind capacity of 1.600 MW and connection contracts for 5.180 MW.
There are many projects at the ready-to-build stage, and the construction works will start in the second half of the year.
Beyond the targets for newly installed capacities in each of the coming years, what do forecasts that take into account projects started or planned to be put into operation in the coming years show by 2025?
The connection deadlines, at least in the Dobrogea area, are for 2025 or later. The conflict in Ukraine, overlapped with the pandemic, extended the delivery deadlines of the equipment and raised its cost.
For the above reasons, we estimate that by 2025 1,500-2.000 MW of wind power will be put into operation.
Demand already exceeds the supply of equipment, materials and labour in the wind sector. How does this affect the development of the sector in Romania?
The impact of the international economic and political context also affects the development of new renewable energy production capacities. The construction of a wind farm is made in close connection with Transelectrica’s development plan, respectively with the capacity of the transmission network to accept the energy produced in a specific location. The availability of funds (through NRRPs, for example) for new investments does not cover the problems of turbine producers, which are also affected by the conflict in Ukraine and the economic crisis — the lack of specific materials, the increase in their costs and transport, the new taxonomy rules — especially for Chinese products. This leads to delays in the implementation of projects.
As far as the workforce is concerned, we are in a happy situation in Romania. Our project, Renew Academy, has the first graduates, wind energy specialists, converted from workers in Jiu Valley.
In which areas of the value chain can Romania develop industrial production units to capitalise on the energy transition?
The energy transition involves modernising energy infrastructure, energy storage capacity, and clean energy generation capacity. Romania can secure all the necessary components of the wind industry. It is only necessary to empower authorities and companies and identify common solutions. The development of the value chain is an intense concern of RWEA, which is the main topic to be debated also at our annual RESInvest conference on 17-18 May 2022.
What are the types of action and which are the main actors RWEA considers to be determinants in the development of the wind energy value chain in Romania?
The main actor in this plan is the Romanian state which must assume a coherent and ambitious plan for achieving the 2030 target. If this is drawn up and supported by the whole political class, then things will evolve quickly.
Of course, European funds and stimulating legislation will be decisive in the company’s decision to get involved in the development of the Romanian wind energy value chain.
RWEA is not only a binder but also a driver for empowering all relevant factors.
Extraordinary funding sources (NRRP, Modernisation Fund) are a catalyst for new projects in the wind segment. Have they also had a stalling effect, at least in the short term, in the sense that companies are waiting for cheap money and delaying the start of work?
The European openness to renewable energy has gained new momentum with the expressed desire to abandon imports from Russia.
Clearly, European funds are not a braking factor for new wind projects. On the contrary, investors are developing new projects more rapidly, some of which also take into account funding from European funds. At the moment there are accessible sources of funding for the implementation of new investments, including European funds (a call open until 31 May for NRPR, followed by the Modernisation Fund, JTF).
We believe that funds are not the source of potential delays in investments; these may arise from the extended duration of issuing opinions, the long connection times, especially in the electricity transmission network, and the difficulties in carrying out the project itself — the purchase of wind turbines and other equipment — and its commissioning, the lack of qualified workforce.
Are there any legislative elements that make it difficult for investors to engage in wind projects in Romania?
In this regard, the Competition Council has started a broad analysis on the identification of possible barriers to market entry of renewable electricity producers.
In order to put into operation renewable electricity generation capacities, companies must meet several conditions and hold all permits/notices required by the incident legislation, and documents issued by several public authorities, which can turn the authorisation into a complex and burdensome process.
At the end of its analysis, the Competition Council will issue recommendations on streamlining the process of approval and connection to the energy system of new renewable electricity generation capacities or may use the other instruments conferred on the authority by the competition law.
We have already had a first meeting with the Competition Council for this purpose and we have identified the possible barriers to the development of new projects.
As is the case all over the world, administrative difficulties seem to remain the most relevant obstacles to new wind projects. What concrete solutions have you identified at RWEA level?
The European Commission also wants to accelerate the bloc’s green transition and reduce its dependence on Russian fossil fuels by authorising renewable energy projects in a single year. Next week, Brussels will unveil a package of measures to end the EU’s dependence on Russia by expanding renewable energies, saving energy and increasing gas imports from elsewhere. Under this package, the European Commission will also propose rules requiring Member States to designate “priority areas” of land or sea that are suitable for renewable energy production, where such projects would have a reduced environmental impact. The permit granting process for new projects located in priority areas for renewables will not exceed one year; this deadline could be extended by three months under “exceptional circumstances”. Compared to the current deadline in the EU for authorising these projects is two years, which can be extended by up to an additional year. Projects located outside the “priority areas” will still have to meet the current deadline.
We believe that the state has the primary role in defining renewable energy targets (for 2030 and beyond), the path and means (primary and secondary legislation, including the definition of support schemes — PPA, CfD), and some funding sources (European and Romanian funds) and of course, in implementation, by issuing opinions and authorisations within the legal deadlines, as short as possible.
Among the measures proposed by RWEA, I mention the centralisation of obtaining opinions in a one-stop shop, speeding up the digital submission of the necessary documentation, shortening approval times, and access by transmission and distribution operators of European funds, to connect new wind producers more quickly.