Romania Wind Energy Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

Romania Wind Energy Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The Romanian wind energy market is expected to register a CAGR of greater than 2.5% during the forecast period. The country's renewable energy sector was severely affected by the COVID-9 pandemic in terms of supply chain disruptions and project delays. The country already reached its 2020 target of renewables. Thus, new investments are likely to decrease till 2021. Although Romanian’s wind potential is the highest in Southeast Europe, with the Dobrogea region being the second-highest wind potential area on the continent, the market is expected to witness significant demographic and economic growth, leading to an increase in energy demand. The increasing demand for renewable energy, rising investments in wind farms, efforts to reduce the reliance on fossil fuel-based power generation, government policies, and declining cost of wind energy are expected to drive the wind energy market in the country. However, the increasing adoption of alternate clean power sources, such as solar, and the availability of fossil fuels are likely to restrain the growth of the wind energy market in the coming years.

Key Highlights

• As of 2020, the country's wind energy sector was dominated by onshore wind farms, while the offshore projects are still under planning stages. This indicates that the onshore segment is expected to continue its dominance during the forecast period.
• According to a study, as of 2019, Romania's exclusive economic zone had a total potential of 76 GW offshore wind power, including 22 GW in the shallow water area that offers higher profitability for such investments. The deep-water area where floating wind farms can be installed accounts for about 54MW potential wind power capacity. Such a huge potential for offshore wind energy is expected to create significant opportunities for the players involved in the market in the near future.
• The increasing acceptance of other alternative clean energy sources, like solar and bioenergy, are likely to restrain the growth of wind energy during the forecast period.

Key Market TrendsOnshore Wind Energy to Dominate the Market

• As of 2020, the total wind energy installed capacity in Romania came from onshore wind farms. Wind energy production has been growing in Romania over the past decade. Romania's wind energy sector is the second-largest source of renewable energy after hydropower.
• Wind energy provided about 12% of Romania’s electricity in 2020. As of 2020, the installed capacity of onshore wind energy in Romania was 3029 MW. The share of wind and other renewables in Romania’s electricity generation mix is expected to rise by 35% by 2030.
• In 2020, Romanian power company Hidroelectrica announced its plans to build 600 MW of wind power capacity by 2026, including a 300 MW offshore wind farm that would be the first-ever to be built in the Black Sea.
• The largest onshore wind farm in Europe is in Dobrogea, in Fântânele and Cogealac, with an installed power of 600 MW.
• Although the wind energy installed capacity has remained constant for the past few years, upcoming wind energy projects and plans to increase the renewable energy share in the country's power generation mix are expected to drive the market during the forecast period.

Increasing Competition from Alternative Energy Sources

• For a long time, wind and hydropower power has been the main renewable energy resources, not only globally but also in Romania. But this scenario has begun changing fast with the growth of solar energy and bioenergy.
• Both solar energy and bioenergy have grown significantly in Romania in recent years. The country’s solar potential is widespread throughout the country and benefits from about 210 sunny days per year.
• The southeastern region of Romania, the west, the center, and the east of the country are the best places to install a solar park. Solar energy capacity in the country has increased from 1 MW in 2009 to 1386 MW in 2019, while bioenergy capacity had grown from 16 MW in 2009 to 142 MW in 2019.
• Solar energy has witnessed substantial growth in Romania in recent years, mainly driven by decreasing prices of solar panels, favorable government policies, and their capability to be installed in small-scale for households and commercial centers.
• The solar power sector in the country has been growing faster than the wind power sector during the last decade and is expected to maintain its dominance in terms of growth during the forecast period, supported by favorable government policies and rising small-scale as well as large-scale usage.

Competitive Landscape

The Romanian wind energy market is moderately consolidated. Some of the key players in the market include CEZ Romania SA, Enel Green Power SpA, EDP Renovaveis SA, VERBUND AG, and Siemens Gamesa Renewable Energy SA.

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