Romania and Bulgaria are the only EU countries that are not members of the OECD. This creates a major barrier to foreign investment, as many large infrastructure funds require OECD membership to invest. As a result, Romania is unintentionally excluded from significant funding opportunities, said Edward Randolph, Investment Director, Amber Infrastructure, at the conference “International Approach: Catalyzing Romania’s energy future”, organised by Energynomics in London.
“Romania is the second-largest market in the region that Amber is covering, and it is clearly a highly attractive market. One aspect that receives less attention is the significant quantity of gas in Romania, which will be crucial over the next 5 to 10 years. As mentioned earlier, Romania is the largest gas producer in Europe. Romania has a highly educated workforce and is a good place to do business. The rule of law is strong, which is not always the case across the EU. Overall, we are very positive about Romania and see significant opportunities in the market.
Once Romania gains OECD membership, which could happen in 2025, a major capital inflow is expected. Romania already has strong market fundamentals and a stable rule of law, so this membership is seen as a technical issue that, once resolved, will attract substantial investments”, he stated.
Another issue is that Romanian pension funds, despite having increasing capital, are restricted from investing in infrastructure. This is highly unusual compared to global standards and prevents them from co-investing with foreign investors. Because of these restrictions, it is actually easier for foreign pension funds to invest in Romania than for domestic ones. A small regulatory change could fix this, unlocking more investment from local financial institutions and creating better opportunities for both Romanian and foreign investors.
Amber has three investments in Romania. One is in Enery, a company with 170 MW of operational renewable energy capacity in the country. Another investment is in a renewable energy company that has recently secured several contracts for difference. Additionally, Amber has a rolling stock business operating in Romania. Amber is also the exclusive investment advisor to the Three Seas Initiative Investment Fund, a 1.2 billion euros fund dedicated to investments in Central and Eastern Europe.
The conference “International Approach: Catalyzing Romania’s energy future” was organised by Energynomics in London with the support of our partners AJ Brand, Elektra Renewable Support, Adrem Asset Management, Enexus, Nofar Energy, Parapet, Wiren.