Romania Power EPC Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Romania Power EPC Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The power EPC market in Romania is expected to grow at a CAGR of more than 2.05% during the forecast period of 2020-2025. Factors, such as the rising development of power generation infrastructure, spurred by increasing demand for electricity in the country are expected to drive the market. However, the lack of investment in the power industry due to unpredictable government policies, which is making hard for energy developers to draft long-term strategies and deterring investment is expected to restrain the market studied.

Key Highlights

• Hydropower is expected to dominate the market owing to the upcoming projects in the country.
• The Romanian government remains determined to slowly phase out coal-based thermal power plants to combat climate change and to ensure the sustainability of the electricity sector by ramping up investments in the nuclear and across the wind, solar, gas, and biomass as a critical part of its sustainable development strategy. This is expected to provide a great opportunity for the market in the near future.
• Renewal of the aging power generation fleet in the country is expected to drive the EPC market in the country.

Key Market TrendsHydropower Generation to Dominate the Market

• Romania, with many rivers, posses a huge potential for hydropower generation. As of 2019, the country has 603 hydropower plants with an installed capacity of 6,340 MW. However, the hydroelectric power output fell by 13.4% to 15.82 TWh in 2019 due to the growing generation from other sources.
• However, with an expected increase in the demand of electricity owing to population increase and industrialization, numerous new projects are expected to come up driving the market during the forecast period.
• In November 2019, Sate-owned company Hidroelectrica commissioned a 12MW power plant at Breteaon Strei river, in Hunedoara county. The plant is a first automated plant in Romania and can be remotely operated. The construction for the plant started in 2008 and investment of EUR 500 million was made. Furthermore, the Hidroelectrica company plans to install the automation technology to each of its 200 hydropower plants in operation.
• Thus, with the upcoming new projects, hydropower generation is expected to dominate the market.

Renewal of the Aging Power Generation Fleet

• The electricity sector plays an essential role in the Romania’s development, with a strong influence on economic competitiveness, life quality, and the environment. To meet consumers’ expectations in the long run, the Romanian energy sector must become cleaner, more economically robust, and technologically advanced.
• As part of its Energy Strategy Outlook to 2030, the government plans to extensively promote the replacement of aging power generation fleet across the country. A considerable share of the baseload power generation power plants in the country are nearing their end of life, and some are already economically inefficient and too polluting.
• The replacement of power generation capacities is expected to require investments of EUR 7-14 billion by 2030, depending on the development scenario, and the government has been actively promoting new power generation sources in the country, including nuclear, wind, solar, and hydropower.
• In addition, the government also plans to fast-track the construction of long-delayed power plant projects in the country. The nuclear project is expected to be the largest potential sector for investment in the Romanian energy sector over the next decades. The country has two power units in operation with around 1300 MWe power capacity, supplying approximately 17% of Romania’s total electricity production, and is planning to expand its nuclear power programme.
• Thus, the new investment to renewal or refurbish the aging power infrastructure is expected to drive the studied market during the forecast period.

Competitive Landscape

The Romania power EPC market is moderately fragmented. Some of the major players in the market are JinkoSolar Holding Co. Ltd, Enel SpA, Siemens AG, Romelectro S.A., and Mytilineos SA.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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