Romania Renewable Energy Market | Size, Share, Trends and Forecast to 2028

Romania Renewable Energy Market | Size, Share, Trends and Forecast to 2028

The global energy landscape is going through a major shift towards renewable-based energy generation. This energy transition was possible after a decade of rapid technological advancement and a favorable regulatory environment. Additionally, factors such as decreasing costs of renewable energy sources and increasing competitiveness of battery energy storage technologies are expected to contribute to accelerated renewable deployment in the coming years. Furthermore, as the concern for climate change and support for environmental, sustainability and governance (ESG) considerations grow, the demand for clean and green power is expected to increase from almost all end-users.

The renewable energy market consists of establishments primarily operating renewable electric power generation facilities. Power generation can be from a variety of sources, including solar energy, wind energy, small hydro, bioenergy, geothermal and marine. The electrical energy generated in these establishments is provided to electric power transmission systems or to electric power distribution systems.

In the current energy mix of Romania, hydropower accounts for more than a third of Romania's electricity production, followed by coal and wind power (approximately 16% each), fossil fuels (14.3%), and nuclear and solar energy (just over 7% each).

Romania Renewable Energy Market Scenario

Investments in renewable energy are picking up pace in Romania. Between 2008 and 2013, the majority of investments were made in wind farms, which had an installed capacity of 3023 MW in 2020, and photovoltaic panels, which had an installed capacity of 1398 MW. However, the development of renewable energy generation took a hit in 2013 due to a change in the subsidy scheme that reduced the number of green certificates awarded. This reform elicited a rapid response from market participants, slowing the trend of new installations.

Following the positive growth of the wind sector, investors began to show interest in solar energy production. According to the National Energy Strategy, Romania's solar potential is capable of producing 1.2 TWh of electricity per year, or 2.5 percent of current national consumption.

As of the end of 2021, the installed renewable energy capacity in Romania was 11,138 MW. Among the renewable sources installed capacity, solar accounted for 12.6%, and wind accounted for 27.1%. The total share of renewable resources in electricity production in 2021 was 45.47 percent.

Romanian government intends to increase energy generation from onshore wind and photovoltaics ahead of 2030 in order to hasten Romania's green transition and rid the country of Russian fossil fuels as soon as possible.

Romania Solar Energy

Romania is located in an area with high solar potential, with 210 sunny days per year and an annual solar energy flux ranging from 1,000 to 1,300 kWh/m2/year. From this total, 600 to 800 kWh/m2/year is technically feasible. The Black Sea coast, Northern Dobruja, and Oltenia are Romania's most important solar regions, with an average of 1,600 kWh/m2/year.

By the end of 2021, the installed capacity of Solar Photovoltaic in Romania was 1,398 MW.

Romania intends to add 6.9GW of new renewable power capacity by 2030, with solar accounting for more than 3.7GW of that total. Overall, renewables would account for more than 30.7% of the country's energy consumption by the end of the decade.

Romania Wind Energy

Wind energy generation has grown rapidly in Romania, owing to the high wind potential and supportive policies for renewable energy production. Romania's wind energy potential is thought to be the highest in Southeast Europe, with an estimated 14,000 MW capable of generating around 23 TWh per year.

In the last decade (2010-2020), globally, the electricity generation from all sources has increased by 2.2% from 21,570 terawatt hours to 26,823 terawatt hours. During the same period, the power generation from renewables increased by 15.25%. Regulatory support by various countries has played an essential role in the growth of the global renewable energy market. Renewable energy tax credits and subsidies, competitive auctions, and feed-in-tariffs helped reduce costs and spur deployment.

Since 2010, the cost of solar photovoltaic (PV) electricity has fallen by 85%, and the costs of both offshore and onshore wind electricity have fallen by about 50%. Both these clean energy sources have reached a stage where they are now cost-competitive with fossil fuel electricity.

In fact, Renewables were the only energy source for which demand surged in 2020 despite the pandemic, while consumption of all other fuels declined. The share of renewables in the total energy mix grew from 3.53% in 2010 to 11.73% in 2020 and is expected to grow to about 30% by 2030.

Romania Renewable Energy Policy

Romania is moving toward a more affordable, secure, and environmentally friendly energy system, in line with European policy. The European Green Deal is largely responsible for the decarbonization of the energy sector in Romania.

Romania met its target of obtaining 24% of total energy consumption from renewable sources in 2020. The new Romanian government target for 2030 is 30.7 percent, which can be achieved by adding 7GW of renewable capacity. However, recent statements by Romanian authorities have revealed that the country intends to raise this target to 34%, as recommended by the European Commission.

Romania's attractiveness for renewable energy investments has declined in recent years, owing in part to a lack of adequate government support and regulations. According to the latest EY Renewable Energy Country Attractiveness Index, despite ranking among the top 40 most attractive countries in terms of renewable energy in 2015 (34th place), Romania fell below this in 2021, being surpassed by European countries such as Greece, Poland, and Austria.

Important steps were taken in 2020 to revitalize Romania's renewable energy sector. After being banned for nearly eight years, the Ministry of Economy, Energy, and Business Environment revoked the long-term bilateral power purchase agreements (PPAs) in May 2020. These amendments are part of Romania's commitment to the European Commission to deregulate its energy market on January 1, 2021, in order to stimulate investment in new electricity generation.

Changes to Law 220/2008 Establishing a System for Promoting Electricity Generation from Renewable Sources (the Renewable Law) are currently being debated in Parliament, with the goal of improving some of the existing energy infrastructure aspects, such as capacity transfers and leases and green certificate rights.

Recent Developments

In Oct 2022, the Romanian Energy Ministry issued a tender call for renewable energy projects totaling 950 MW capacity, which will be open to wind and solar with the option of storage links. Around EUR 372.7 million will be allocated to projects larger than 1MW, and EUR 75 million will be allocated to wind and solar plants with capacities ranging from 200kW to 1MW.

What Do We Cover in the Report?

Blackridge Research's Romania Renewable Energy Market report contains the installed capacity of renewable power generation sources (year-on-year) until 2028, the list of ongoing and upcoming renewable power generation projects such as solar photovoltaic farms, concentrated solar power projects, onshore wind, and offshore wind energy projects and the regulatory scenario within the renewable energy market of Romania.

Furthermore, the report will contain the drivers and restraints within the Romania Renewable Energy Market along with a meticulous evaluation of their impact in the near-, medium-, or longer term. Factors affecting renewable energy deployment include market conditions (e.g., cost, diversity, proximity to demand or transmission, and resource availability), policy decisions (e.g., tax credits, feed-in tariffs, and renewable portfolio standards), as well as country-specific regulations.

Finally, the presentation would enable identifying market opportunities and planning for long-term growth. The impact of the COVID-19 pandemic is an integral part of the report.

This product will be delivered within 3-5 business days.