Policy Brief. SMALL MODULAR REACTORS: A TECHNICAL AND ECONOMIC ASSESSMENT. General considerations and the case of Romania

Energy Policy Group

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November 28, 2023

Policy Brief. SMALL MODULAR REACTORS: A TECHNICAL AND ECONOMIC ASSESSMENT. General considerations and the case of Romania

The report of Energy Policy Group and Clean Air Task Force offers a cautious technico-economic endorsement for the development of the most viable SMR designs. They will bring an important contribution to the intensifying efforts of reaching net-zero emissions by 2050, as well as to ensuring energy security and affordability.

SMRs represent the promise of a new nuclear technology to supply zero-emissions, safe, and dispatchable power, amid intensified efforts to reduce carbon emissions and ensure energy security. With small size (up to 300 MW per unit) and simplified design, modular and factorymade, SMRs are expected to supply new kinds of industrial consumers of electricity and/or heat – e.g., steel mills, aluminum smelters, chemical plants, off-grid mining, refining facilities, electrolyzers, and replacement of closing coal power plants. SMRs will offer zero-emissions baseload (yet partly flexible) power to an energy system with an increasing share of renewables. They will be geographically distributed, with smaller footprints, and much less dependent for cooling on water bodies.

Full Policy Brief

The Battle for the Black Sea! The Importance of Freedom of Navigation and Energy Stakes

Energy Policy Group

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November 23, 2023

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The Battle for the Black Sea! The Importance of Freedom of Navigation and Energy Stakes

The Russian Ukrainian War is causing tremors far beyond the military front lines. Major food and supply chain disruptions, hybrid aggression against democratic countries, continuous violation of internationally recognized freedoms of navigation, trade and development of resources in exclusive economic zones, hegemonic militarization by Russia of an entire Black Sea and tangible risks of contagion among neighboring countries, are some of the topics that are addressed in this paper.

Apart from its relevance as a gateway to Asia and the Middle East, the authors emphasize the significant potential that the Black Sea region has in terms of supply routes, energy and natural resources potential that can contribute to progress and economic security for the entire European continent.

The region has become the factual expression of the clash between autocracies and democracies, of aggressive powers aspiring to take leadership in a multipolar world and a geopolitical laboratory of how the “new multipolar world” imagined by rising autocracies would look like. Being an existential threat to European security, aggressive conduct in the Black Sea must therefore be suppressed at all cost. Strengthening the economic and military security posture of NATO, EU in the region and that of Black Sea riparian states like Romania, must be a necessary step towards the goal of ending the war and assisting in the rebuilding of Ukraine and its admission to the Euro Atlantic community. The US needs a strategy dedicated to the Black Sea, which for the first time determines a long-term and predictable vision of the United States towards this region, so vulnerable, but at the same time, so important for global connectivity, energy, food security and trade.

Small Modular Reactors: A Technical and Economic Assessment. General Considerations and the Case of Romania

Energy Policy Group

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November 23, 2023

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This report has been prepared by Energy Policy Group (EPG) Romania with collaboration and sponsorship from Clean Air Task Force (CATF). This report received no financial support from the government, industry and private sector and it was prepared based on publicly available data, information, articles and scientific publications.

Radu Dudău, EPG President

Radu Dudău is President and co-founder of EPG. He was, from 2007 to 2023, an Associate Professor at the Bucharest University. From 2006 to 2010 he was Deputy Director at the Romanian Diplomatic Institute (Ministry of Foreign Affairs).

He graduated in Physics and Philosophy from the University of Iași. He holds a Dr. Phil. degree in Philosophy (magna cum laude) from Konstanz University (Germany) and a PhD in Political Science (International Relations) (summa cum laude) from the National School of Political and Administrative Studies (SNSPA, Bucharest).

He was a Fulbright Fellow with the National Security Program at Harvard Kennedy School of Government (2011), a New Europe College Fellow at the Danish Institute of International Relations (Copenhagen, 2006) and an OSI/FCO-Chevening scholar at Oxford University (1999-2000).

His work focuses on energy policy, energy technology, and energy markets.

Contact: radu.dudau@epg-thinktank.org

Transformarea industriei românești

Energy Policy Group

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November 20, 2023

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Industria energointensivă din România este un contribuitor important la economia națională. Deși capacitățile de producție industrială s-au micșorat semnificativ în ultimele 3 decenii, acestea păstrează o contribuție de 16.5% la valoarea adăugată brută națională, și asigură aproximativ o cincime din forța de muncă activă din România. Având în vedere această importanță economică strategică, producătorii de oțel, ciment, chimicale și produse petroliere trebuie să se adapteze rapid la noua realitate a industriei europene, marcată de constrângeri în privința emisiilor de gaze cu efect de seră.

Aceste sectoare sunt dificil de decarbonizat, deoarece procesele convenționale pe care se bazează consumă un volum semnificativ de combustibili fosili și generează emisii de proces. Cu toate acestea, decarbonizarea lor aduce oportunități semnificative atât pentru menținerea competitivității, cât și pentru protecția forței de muncă și creșterea gradului de dezvoltare și inovare.

Patru categorii de măsuri sunt necesare pentru decarbonizarea industriei grele din România: (1) electrificarea, susținută de energie regenerabilă, (2) utilizarea hidrogenului regenerabil și combustibililor cu emisii reduse, (3) captarea și utilizarea sau stocarea dioxidului de carbon și (4) creșterea eficienței consumului industrial de energie și resurse.

Luciana Miu, EPG Head of Clean Economy

Luciana Miu is the Head of Clean Economy at Energy Policy Group. She holds a Master’s degree in Sustainable Energy Systems from the University of Edinburgh and a PhD in Energy Efficiency of Residential Buildings from the Imperial College London. Before joining EPG, Luciana worked for the UK Parliament and for the British Government’s Department of Business, Energy and Industrial Strategy (BEIS), as well as a consultant for Climate-KIC and London City Hall.

Contact: luciana.miu@epg-thinktank.org

The way forward for a low-carbon industry in Romania

Energy Policy Group

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November 9, 2023

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Romania’s industry will need to transform fundamentally to align with climate commitments and remain competitive in a low-carbon world. With increasing pressure from EU policy and a race to decarbonise industrial production in EU Member States, there are progressively fewer windows of opportunity for implementing the new processes and technologies required for greening heavy industry. A fragmented national policy framework and a narrow fiscal space mean that Romania will face significant difficulties in keeping its industry competitive. However, it also has key advantages it can capitalise on to become a low-carbon industry leader.

To achieve economy-wide net zero emissions by 2050, the main pathways for industrial decarbonisation are electrification, continuous improvements in energy and resource efficiency, the uptake of renewable hydrogen and other low-carbon fuels, and carbon capture, utilisation, and storage. Romania’s primary steel, cement, and chemicals production (particularly fertilisers) require the deepest transformation to enable industrial emissions reductions. The technologies needed to achieve these changes are costly, have long lead times, and in some cases imply new materials and supply chains. Furthermore, industrial transformation is not just technological – concerted action will be needed to safeguard the rights of workers in industrialised regions and prepare them for meaningful employment in Romania’s decarbonised industries and in those new industries which may emerge.

To decarbonise Romania’s industry sustainably and justly, three main areas of action must be addressed: industrial policy, funding and market creation, and infrastructure development. Firstly, Romania needs a cornerstone industrial strategy anchored in long-term climate commitments and driven by selective support rather than across-the-board crisis management. This industrial strategy must clearly assign responsibilities to competent authorities, commit to funding and financing instruments, and address socio-economic impact, supply chain management, and research, development, and innovation. Romania’s wider domestic policy framework, as well as its positioning in EU negotiations, must also be consistent with the commitments and goals of its industrial policy.

Secondly, industrial transformation in Romania will require a massive mobilisation of funding and the stimulation of new markets for green industrial products. As a country with a comparatively low fiscal space, Romania cannot rely excessively on state aid granted to industrial producers, as done in countries such as Germany and France. Instead, eventual state aid schemes targeted at competitive industries should be complemented by the use of EU funding opportunities, including the Modernisation Fund and the Innovation Fund, the unlocking private financing, and the implementation of green public procurement to stimulate a reliable lead market for products such as low-carbon steel and concrete. There are significant opportunities in this space, given Romania’s massive planned spending on large-scale infrastructure projects.

Finally, decarbonising Romania’s industry will require huge infrastructure for enabling renewable electricity, hydrogen transport, and carbon dioxide (CO₂) transport and storage. The scale of the challenge is significant: electricity consumption will increase and its geographical distribution will change, straining an unprepared transmission grid; new pipelines will be needed for hydrogen and CO₂ transport; and CO₂ storage capacities must be developed very rapidly. Romania must thus invest significantly in the expansion and strengthening of the electricity transmission grid, and in essence start from scratch in developing a network of hydrogen and CO₂ pipelines, as well as CO₂ storage.

These key actions for decarbonising Romania’s industry will not be easy. They will require massive investment, coordination within the state apparatus and with industry, and significantly more political engagement on the subject. However, the benefits are undeniable: increased industrial competitiveness, a well-prepared workforce, reliable infrastructure, and a significant contribution to Romania’s climate ambitions. Reaping these benefits will depend first and foremost on understanding the magnitude of the challenge, and subsequently on internalizing it in concrete policy, funding, and infrastructure measures to enable decarbonisation at the required scale and pace.

Luciana Miu, EPG Head of Clean Economy

Luciana Miu is the Head of Clean Economy at Energy Policy Group. She holds a Master’s degree in Sustainable Energy Systems from the University of Edinburgh and a PhD in Energy Efficiency of Residential Buildings from the Imperial College London. Before joining EPG, Luciana worked for the UK Parliament and for the British Government’s Department of Business, Energy and Industrial Strategy (BEIS), as well as a consultant for Climate-KIC and London City Hall.

Contact: luciana.miu@epg-thinktank.org

The Case for a Climate Law in Romania (EN-RO)

Energy Policy Group

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October 31, 2023

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The Governance Regulation (2018) and the European Climate Law (2021) of the EU align the block with the climate commitments under the 2015 Paris Agreement, by setting a target of reaching climate neutrality by 2050, as well as establishing implementation and reporting mechanisms. At national level, 11 EU Member States have also adopted climate framework laws, which legislate national emissions reduction targets and outline the mechanisms to achieve them in the long term, while 5 others also legislated climate action, but less comprehensively. Climate framework laws vary greatly between countries but share some common core elements, such as long-term emissions reduction targets, internal coordination mechanisms, monitoring and reviewing systems, independent scientific advisory bodies and provisions for public participation. Despite being relatively recent instruments, there is evidence of positive impact.

Currently, Romania does not have a comprehensive climate policy framework and relies mostly on transposed EU legislation to formulate targets and plans. Institutional responsibilities on climate change tend to be scattered, with insufficient coordination, weak accountability mechanisms, and a lack of long-term planning based on scientific evidence.

Despite these challenges, recent policy activity shows that Romania can be proactive in elaborating climate policy; for example, the national coal phaseout law, passed in 2022, and the inclusion of an objective of climate neutrality by 2050 in the national long-term strategy (LTS). This momentum should culminate by setting Romania’s climate objectives into law through adopting a national climate framework law.

A climate framework law in Romania should include:

Legally binding, clear, short- and long-term emissions reduction targets (economy-wide and sectoral), aligned with the ambition of climate neutrality by 2050 and the trajectories of the EU ETS, the Effort Sharing Regulation, and the LULUCF Regulation. These should be periodically revised, while the law should include a provision against backsliding.
A set of economy-wide and sectoral planning instruments (including, but not limited to the NECP and LTS), complete with a commitment to periodic revision and updating. The climate law should refer to the implementation of the Governance Regulation and strengthen the effectiveness of the NECP and LTS, as a complementary instrument for achieving the Union’s targets. Additionally, the law could require the development of sectoral plans or strategies for sectors that have received less attention such as industry and agriculture.
A carbon budget (economy-wide or sectoral) to ensure that interim targets are met. These budgets should cover a limited time frame (e.g. 10 years with 5 years revision) and be progressively reduced to reach the emission reduction targets.
Clear institutional responsibilities to ensure policy coherence. For this purpose, the responsibilities of the Inter-ministerial Committee on Climate Change could be expanded to provide coordination for the ministerial obligations for implementation of the climate framework law and the sectoral strategies. The Ministries of Economy, Environment, Energy, and Development could all delegate a team or department responsible for reporting on achievement of sectoral targets and implementation of the sectoral provisions of the climate law.
A commitment to establish an independent, well-resourced scientific advisory body to guide policymaking and keep governments accountable. This group would be appointed by the government, on a fixed term, and would be made up of independent experts from academia, research institutes, think tanks, the public or private sector that have extensive expertise in different topics related to climate change mitigation and adaptation. It should have a dedicated secretariat with own staff and resources to conduct preliminary research and analysis. The independent scientific advisory body could be shaped after the model of the Economic and Social Council, which must be consulted by both the Parliament and the Government when adopting legislation. Its role could include issuing biennial progress reports to Parliament and providing opinions and recommendations on proposed climate policies, which the government would be obligated to consult.
A clear MRV system, including periodic impact assessment, reporting minimum once every two years and using evidence-based impact assessment methodologies, including for socio-economic impact. The Ministry of Environment, Waters and Forests could be the designated institution to apply the MRV system, while the independent scientific advisory body would evaluate the results and recommends further action. The law should include provisions for mandating the government to undertake additional action if intermediate targets are found to not be met.
Obligations for inclusive and transparent stakeholder engagement, including in periodic impact assessments. The law should make provisions to improve and strengthen public participation on climate plans and law revisions, including making documents readily available for comment, actively engaging civil society, and setting up a permanent stakeholder engagement platform. To make sure that the stakeholder input is taken into consideration, their recommendations could be integrated in the report of the independent scientific advisory body, to which the government must issue a response.
Obligations for future policies in all areas to address climate change concerns, and for energy and climate policies to incorporate the assessment of socio-economic impact and just transition measures, in line with the provisions of the climate law. This type of climate mainstreaming could be applied by requiring ministries to develop sectoral roadmaps for reducing emissions of their sectors, with the overarching goal of climate neutrality.
A clear indication of resource needs (including funding and administrative capacity) for enforcing and implementing the climate framework law, drawing from the examples from countries such as France or Spain.

Consultați raportul tradus în limba română AICI.

Luciana Miu, EPG Head of Clean Economy

Luciana Miu is the Head of Clean Economy at Energy Policy Group. She holds a Master’s degree in Sustainable Energy Systems from the University of Edinburgh and a PhD in Energy Efficiency of Residential Buildings from the Imperial College London. Before joining EPG, Luciana worked for the UK Parliament and for the British Government’s Department of Business, Energy and Industrial Strategy (BEIS), as well as a consultant for Climate-KIC and London City Hall.

Contact: luciana.miu@epg-thinktank.org

[CLOSED] EPG is looking for a Research Assistant/ Researcher within in the Buildings team

Careers

Energy Policy Group

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October 30, 2023

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CLOSED CALL

About EPG:

The Energy Policy Group (EPG) is a Bucharest-based non-profit, independent think-tank specialising in energy and climate policy, market analytics and decarbonisation strategy, grounded in 2014. EPG is committed to promoting long-term decarbonisation policies and actions across all economic sectors. Through publications and public events, EPG disseminates knowledge about the green transition and provides well-documented input to stakeholders and decision-makers. Its publications are freely available as research reports, opinion papers, and policy briefs. EPG’s conferences, roundtables and workshops provide a platform for informed discussion and expert analysis. EPG’s funding comes mainly from research grants, but also from sponsorships and membership fees.

About this position:

The new research position will support the research activities of the Buildings Department within the Clean Economy programme, one of our two main research programmes. The selected candidate will join our team of researchers and is expected to contribute to our research outputs as well as to the broader strategic thinking of EPG and especially to projects on energy efficiency in buildings and embedded carbon in buildings.

The position is offered for a one-year fixed-term contract, with possibility of extension to an indefinite-term contract. The level of the position will be decided based on the qualifications of the successful candidate. EPG welcomes applications from a diversity of backgrounds irrespective of age, gender, ethnicity, religious beliefs, sexual orientation, or disability.

Key responsibilities:

Conducting research activities and leading research efforts in the field of buildings decarbonisation policies;
Producing analysis in support of our research outputs and strategic thinking;
Participating in international research teams as part of our research grants;
Monitoring key trends and policy developments at national and EU levels concerning buildings decarbonisation;
Actively participate in the design and organisation of events, deliver presentations and engage with key stakeholders;
Building a broad and relevant network of key stakeholders;
Writing op-eds and commentaries;
Assisting the application process for new research proposals;
Supporting our overall activity at the office, including supporting applications for funding for their area of research and, where necessary, review EPG publications related to their work area.

Background and experience:

Undergraduate degree in relevant discipline, such as political or environmental sciences, architecture, engineering, economics, or equivalent with a focus on energy performance of buildings;
Minimum 2 years of work experience in the energy sector and/or climate policy for the position of Researcher. Working experience is not mandatory for applicants for the position of Research Assistant, but it constitutes an advantage;
Demonstrable knowledge of the issue of energy efficiency in buildings, embodied emissions, the EED and EPBD, as well as energy and climate policies at large both at EU and national level (Researcher only); a good understanding of the Romanian buildings sector represents an advantage;
Ability for critical thinking, summarising complex research, drafting reports, and communicating effectively in writing;
Demonstrable presentation skills;
Ability to work in a diverse team of experts;
Track record of stakeholder engagement and access to a network of relevant experts (Researcher only);
Previous involvement in the organisation of workshops and events, including experience with moderating roundtables and workshops;
Experience in international research grants is an advantage;
Excellent command of English and Romanian, both orally and in writing.

Personal profile:

You are dedicated and committed to conducting research and formulating policy solutions for the decarbonisation of the Romanian and EU economy;
You understand the need for reaching net-zero greenhouse gas emissions by 2050 and are passionate about contributing to climate change mitigation efforts;
You are intellectually curious and able to engage in multidisciplinary research;
You have great analytical abilities, you can deal with complex information, and can communicate in a concise, yet nuanced manner;
You are willing to participate in the dissemination of EPG’s work;
You are a team-player, but also capable of organising your own work.

What EPG offers:

Full-time employment for a fixed one-year contract, with possibility of further extension to an indefinite-term contract;
A flexible work environment which can accommodate remote working;
Opportunity to progress in your career path and gain valuable knowledge and insights on energy and climate policy;
EPG also encourages the participation of its employees in training and education programmes in relevant areas;
Salary range (net salary): €1050-1450 (Researcher), €750-1050 (Research Assistant), based on relevant experience.

How to apply:

The deadline for applications is November 13, 2023. Interviews will be conducted before the end of November. The successful candidate is expected to start as soon as possible. Complete applications in English should be emailed to office@epg-thinktank.org, mentioning the position you are applying for (Research Assistant or Researcher) and your name. The email should contain a single pdf file with:

A CV maximum of 2 pages;
A cover letter of maximum one page outlining your interest and motivation for applying;
A list of maximum one page with your personal publications.

Incomplete application will not be considered. You must have the right to work in the EU.

Candidates selected for an interview will be asked to provide a written sample in English of no more than 20 pages.

Unfortunately, we will not be able to reply to every candidate. If you have not received a reply within two weeks of the application deadline, you should consider you application unsuccessful.

If you are in need of further details regarding this position, please contact Luciana Miu, Head of Clean Economy at: luciana.miu@epg-thinktank.org

Prosumatorii și limitele actuale ale sistemelor de distribuție

Energy Policy Group

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October 20, 2023

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Cea mai spectaculoasă evoluție din sectorul energetic național al ultimilor ani este, fără doar și poate, creșterea exponențială a numărului de prosumatori, casnici și non-casnici, până la o capacitate instalată totală de peste 1,1 GW. În condițiile în care statul român, actor dominant pe piața de energie electrică, nu a mai finalizat o investiție de proporții de la punerea în funcțiune a Unității 2 a centralei nucleare de la Cernavodă, în 2007, o astfel de creștere de capacitate este cu atât mai remarcabilă cu cât s-a realizat, în mare parte, din fondurile proprii ale cetățenilor români.

Potrivit celor mai recente date ale ANRE, la 31 august a.c. erau racordați la rețelele de distribuție 91.556 de prosumatori, a căror putere instalată însumată era de 1.164 MW. Creșterea a demarat semnificativ după aprobarea OUG 143/2021, prin care au fost introduse în Legea Energiei prevederi favorabile prosumatorilor, și a devenit fulminantă începând cu luna iulie 2022, după declanșarea crizei energetice din 2022, cauzate de invazia Ucrainei de către Rusia. Aproape jumătate din numărul total de prosumatori s-au bazat pe investițiile proprii. După finalizarea evaluării și aprobării dosarelor pentru 2023 ale programului Casa Verde Fotovoltaice, derulat de către Agenția Fondului de Mediu (AFM), se preconizează că deja în primăvara anului 2024 va fi atinsă capacitatea instalată de 2 GW.

Prosumatorul, element important al tranziției energetice, este încurajat și susținut de legislația europeană și națională, precum și de normele de reglementare. Într-adevăr, prosumatorul întrunește o serie de caracteristici deosebit de dezirabile în tranziția energetică: producție descentralizată de energie regenerabilă, distribuită geografic, prin care sunt acoperite nevoile de auto-consum, în condițiile volatilității prețurilor energiei pe piețele angro și ale creșterii preconizate a cererii de energie electrică – pompe de căldură, vehicule electrice, tehnologii industriale bazate pe electricitate, etc. Odată cu reglementarea dreptului de a livra energie electrică în rețeaua de distribuție, prosumatorul beneficiază (teoretic) de compensare cantitativă de către furnizorul de electricitate a energiei electrice injectate în rețea, astfel că avantajele producției proprii de energie sunt extinse la perioade ale zilei și ale anului în care producția proprie încetează. Mai mult, prin intermediul agregatorilor de energie, prosumatorii pot contribui la oferte de energie electrică pe piețele angro. Astfel, prosumatorii pot adopta un comportament strategic, de optimizare a beneficiilor financiare.

Radu Dudău, EPG President

Radu Dudău is co-founder and director of EPG. He is Associate Professor of International Relations at Bucharest University. From 2006 to 2010 he was Deputy Director at the Romanian Diplomatic Institute (Ministry of Foreign Affairs).

He graduated in Physics and Philosophy from the University of Iași. He holds a Dr. Phil. degree in Philosophy (magna cum laude) from Konstanz University (Germany) and a PhD in Political Science (International Relations) (summa cum laude) from the National School of Political and Administrative Studies (SNSPA, Bucharest).

He was a Fulbright Fellow with the National Security Program at Harvard Kennedy School of Government (2011), a New Europe College Fellow at the Danish Institute of International Relations (Copenhagen, 2006) and an OSI/FCO-Chevening scholar at Oxford University (1999-2000).

His main expertise focus is energy security and natural resource geopolitics.

Contact: radu.dudau@epg-thinktank.org

Navigating the Transition to Renewables in Eastern Europe

Energy Policy Group

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September 15, 2023

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An Exploration of Electricity Market Reform and Price Signals

On 14 March 2023, the European Commission (EC) published a proposal to reform and improve the European Union (EU) electricity market design. The proposal encompasses mainly three areas of action:

Protecting and empowering consumers from energy price volatility through fixed and dynamic price contracts, multiple contracts option, improved transparency and information, the opportunity to share renewable energy without the need of energy communities’ establishment, stabilization of energy supply by encouraging suppliers to hedge their exposure against high prices by using forward contracts with generators that can lock future prices;

2. Strengthening the stability and predictability of the energy industry through the optimization of short-term electricity markets, market access to more stable long-term contracts such as PPAs and CfDs, but also through liquidity enhancement in forward markets by introducing regional virtual hubs;

3. Stimulating investments in renewable energy sources and flexibility solutions by providing stable prices to consumers and reliable revenues to RES producers through PPAs and CfDs, designing capacity markets to provide low-carbon flexibility, implementing new support schemes and products for non-fossil flexibility such as demand response and storage, making connection capacity availability more transparent, and bringing trading deadlines closer to real time.

The primary goals of the EC legislative proposals are to optimize the electricity market design for a decarbonized energy system and to enhance affordability for consumers. This will require coordinated actions amongst Member States both at national and regional levels.

This paper assesses the current situation of the renewable energy market in Central and Eastern Europe (CEE) along with the inherent technical and economic challenges posed by the rapid deployment of renewable capacities. The marginal pricing (merit-order) mechanism remains a well-established and transparent way of determining prices in the short-term electricity markets in CEE, encouraging competition and innovation in the energy sector. The decline in wholesale electricity prices coupled with periodic price volatility signify that generation lacks flexibility, the demand side is inexistent or is not adequately responsive to pricing, or there is insufficient energy storage for arbitrage. Recent negative price signals highlight the need to invest in solutions and technologies to enhance system flexibility in the region.

Obviously, an increasing renewable-based power system requires customers to play a more active role in electricity markets through various mechanisms like dynamic tariffs, aggregators and demand shifting. In order to accelerate the integration of renewable energy sources, customers can engage in demand response actions and benefit from grid stability and electricity cost reduction at the same time. The CEE region definitely lacks a comprehensive regulatory framework that incorporates demand-side management, through which electricity markets can better protect customers from price volatility, ensure fair pricing, and foster an environment where consumers can make informed decisions about their energy consumption.

Nonetheless, energy market revenues alone are insufficient to attract the level of renewable energy investment required in CEE, due to the electricity price and investment recovery uncertainty, jeopardizing all the energy sources, not just the renewable ones. Therefore, long-term arrangements backed both by governments and private stakeholders are still necessary to de-risk the investment in low-carbon power generation in the region, providing long-term visibility for investors and keep financing costs low. However, it is important that support mechanisms do not significantly disrupt the operation of wholesale markets, but rather enable renewable energy sources to respond to price signals and encourage their involvement in the wholesale markets, particularly in the balancing markets.

Ajutor de stat pentru Complexul Energetic Oltenia: cu ce scop și până când?

Energy Policy Group

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September 7, 2023

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Complexul Energetic Oltenia (CEO) este unul dintre cei mai mari producători de energie din România, cu o putere instalată de peste 3 GW și aproximativ 11.000 de angajaţi – un adevărat colos, care a contribuit timp de decenii la siguranţa energetică naţională.

Totuși, în contextul obiectivelor europene și naţionale privind decarbonizarea, CEO trebuie să treacă prin schimbări profunde pentru a se adapta evoluţiilor din sectorul energetic. Producţia de energie electrică a companiei se bazează pe lignit, care produce emisii majore de CO2. Pe măsură ce producătorii de energie electrică pe bază de combustibili fosili au trebuit să plătească costul emisiilor de CO2 pentru emisiile cauzate prin schema de comercializare a certificatelor de emisii (EU ETS), energia produsă a devenit din ce în ce mai scumpă pentru cumpărători. CEO are cele mai mari emisii de CO2 din ţară, iar Gorjul este judeţul cu cea mai mare intensitate a emisiilor de gaze cu efect de seră din România.

Eliminarea producţiei de energie pe bază de lignit a devenit, astfel, imperativă, fiind legiferată de altfel în anul 2022 prin Legea decarbonizării, care prevede închiderea tuturor capacităţilor până în 2032. Având în vedere revizuirea recentă a directivei EU ETS, care va duce la o creștere constantă a preţului certificatelor de CO2, este dificil de crezut că CEO va mai avea termocentrale pe bază de lignit funcţionale până la finalul deceniului.

Mihai Constantin, EPG Researcher

Mihai Constantin works as a Researcher at EPG. In this position, he is contributing to the activities of the Energy Systems Programme. Mihai has a Master Degree in European Economics at Bucharest University of Economic Studies. He has expertise on public policies in the fields of energy, climate change and economics. Before joining EPG, he worked for WWF Romania as Climate & Energy Manager and as Advisor on Public Policies in the Romanian Parliament.

Contact: mihai.constantin@epg-thinktank.org