Future Energy Leaders Romania (FEL Romania) launches the analysis entitled “The effects of the war in Ukraine on the energy sector. Proposals for measures and recommendations for Romania”, which represents a point of view of the organization regarding the impact of the current energy crisis on the European area and Romania. According to the study, at the local level, Romania found itself in the vanguard of the states that adopted measures to ameliorate the effects of the energy crisis, which aimed to ensure an adequate level of affordability of prices, targeting: electricity, natural gas and fuels, with impact on all companies in the energy value chain, from production, transport and to the final consumer.

“Nevertheless, an exit plan from the crisis is necessary in order not to unjustifiably maintain an inertia of the market operation based on redundant administrative interventions, which could prevent the formation of prices below the level of ceilings imposed by law,” say the authors.

In the opinion of the authors of the analysis, there are four major categories that Romania must work on in the coming years, and the set of measures that could be undertaken, at the level of country policies and strategies, concern the use of all valid sources of non-reimbursable financing and increasing the degree of investments to support the energy transition process. Thus, FEL Romania recommends:

1. For electricity production:

• The assumption of a target, regarding the share of energy from renewable sources in gross energy consumption, aligned with the RePowerEU target, given the potential presented by Romania;
• The planning of energy capacity projects from intermittent renewable sources should be correlated with ensuring the necessary investments for the implementation of energy storage systems (eg: pumped storage hydroelectric plants – CHEAP);
• Accelerating the implementation of measures to simplify the legislative framework for approval and operationalization of new energy production capacities from renewable sources, as Romania is in regional and global competition to attract these investments.

2. For gas production:

• Accelerating the implementation of natural gas exploitation projects both onshore (Caragele Deep) and offshore (Neptune Deep);
• Development of the regulatory framework for green gases (eg: biomethane, hydrogen, synthetic methane, etc.);
• Implementation of support schemes for the development of biomethane and hydrogen in Romania. We already find these support schemes in the case of other technologies such as photovoltaic panels, wind farms, electric vehicles, etc., which needed financial support to develop and adopt on a large scale.

3. For infrastructure:

• The need for additional investments in the electricity transmission network and in increasing the degree of interconnection, including projects in direct current for the evacuation of electricity expected to be produced in the Dobrogea and Black Sea area;
• Supporting investments in electricity distribution networks, thus increasing their resilience, flexibility and adaptability, necessary to integrate the different types of technologies such as: prosumers, electric vehicles, battery storage, heat pumps, etc.;
• The development of the Southern Natural Gas Transport Corridor together with the completion of the BRUA-Serbia gas pipeline, respectively the diversification of natural gas import routes through the construction of LNG terminals in Romania and Georgia;
• Supporting the introduction at national level of the “hydrogen-ready” standard, in the case of gas infrastructure, to which a digitization component should also be attached to reflect the European desire to have a network ready to accommodate green gases;
• It is necessary to expedite/unblock the following projects: (1) making investments in the storage capacities of DepoGaz and DepoMureș; (2) exploiting the possibility of storing green gases in suitable geological structures (salt caverns, aquifer structures, etc.), including by co-opting SALROM.

4. For consumption:

• Accelerating the implementation of decentralized renewable energy sources (photovoltaic panels, solar panels, etc.);
• Use of heat pumps, where this is technically and economically feasible (especially in new buildings);
• Efficiency of consumption by carrying out energy audits and renovations (eg: thermal insulation, replacement of windows, doors and modernization of heating and cooling systems) respectively awareness and responsible consumption of energy (both electricity and natural gas);
• Use of green gases (blending natural gas with biomethane and/or hydrogen) in the heating sector.

FEL Romania believes in a neutral approach regarding decarbonization options, considering the criteria regarding economic and technical feasibility, respectively affordability and social acceptance must prevail in the choice of decarbonization options. He also believes that the dominance of a single technology in the decarbonization of the energy system is not feasible, but in a balanced mix of solutions, in order not to change the dependence on a single source or technology for another.

In this sense, it becomes essential to update the investment plans related to the domestic energy infrastructure and correlate them with the programmatic documents at the national level – the Integrated National Plan in the field of Energy and Climate Change 2021-2030.

It is also important that legislative measures addressed to the energy sector are preceded by an effective public consultation process, i.e. take into account the investment needs of the entire energy value chain, from production to the final consumer.