Renewable energy in Romania

Romania’s electricity demand declined considerably in the 1990’s, and as a result, several older thermal power stations were decomissioned. However, as their economy has been expanding at a healthy, steady rate over the past decade, this trend has made a very clear u-turn, and has been heading upwards ever since.

With the recent buzz on energy development, renewable energy investors who are increasingly concerned about lower returns from more estbalished markets in Europe are increasingly on the lookout for more attractive locations to invest in. Romania is emerging as one of these prime spots, and although the development of RE plants has been little to date, this trend is due to make a u-turn, along with the increase in electricity demand.

The most promising renewable energy sources appear to be wind, biomass, and hydro. And despite fairly low energy prices, Romania is proving to be a strong candidate for wind power development. With the highest wind energy potential in the Southeastern European region, and Dobruja listed as the second best place in Europe to construct wind farms, it’s no surprise that Romania has attracted the attention of investors.

Another factor that’s made Romania such an attractive candidate for RES development, is their increasingly solid support mechanism. Their are still several commonplace issues for RES investors to overcome in Romania – mostly in the form of grid connection problems. Nonetheless, an attractive combination of abundant resources, one of the most attractive support mechanisms Europe has to offer, good long-term returns, and an energy infrastructure that is improving continuously, suggest that the Romanian renewable energy industry can look forward to considerable growth in the future. A large number of projects have already been announced, and although it’s still to early to tell whether these projects will actually be implemented, one thing is for certain – there is a definate u-turn in terms of RES development. And those who follow the turn can look forward to green lights all the way.