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

The market is segmented by Source (Coal, Nuclear, Renewables, Other Sources (Natural Gas and Oil)).

Market Snapshot

Romania Power Market -  Market Summary
Study Period: 2019-2027
Base Year: 2021
CAGR: >4.3 %

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Market Overview

The Romanian power market is expected to register a CAGR of more than 4.3% during the forecast period, 2022-2027. The COVID-19 outbreak in 2020 had not witnessed any recordable impact. However, due to lockdown measures, low revenue collection from the industrial and commercial sectors had impacted the power industry negatively. Factors such as the growing demand for renewable energy, upcoming investments in the energy sector, and supportive renewable energy policies drive the market's growth. However, the high initial investment cost, long investment return period on projects, and limited natural resources are expected to restrain the Romanian power market during the forecast period.

  • Hydropower to witness significant growth during the forecast period, owing to the increasing share of electricity generation from hydropower.
  • The government of Romania has announced plans to invest over EURO 22.6 billion (USD 26.7 billion) in the power sector between 2020-2030. This is likely to create immense opportunities for Romania's power market in the future.
  • Supportive renewable energy policies in the country are likely to drive the Romanian power market in the forecast period.

Scope of the Report

The Romanian power market includes:

Coal
Nuclear
Renewables
Other Sources (Natural Gas and Oil)

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Key Market Trends

Hydropower to Witness Significant Growth

  • Romania's energy mix is dominated by hydrocarbon energy sources such as coal, oil, and natural gas. This scenario is changing fast with the growth of hydropower and solar energy.
  • Hydropower is the largest source of renewable energy in Romania. Romania has great potential of more than 9GW, but, as of 2020, only 6% of the total hydropower capacity was utilized. Hence, the country has the option to explore more areas to capture hydroelectric power.
  • Currently, Romania is seeking to derive more of its energy needs from renewable sources. Romania is seen as a fast-growing market for hydropower in the Southeast European region.
  • According to IRENA's Renewable Energy Statistics 2021, the total capacity of renewable energy sources, as of 2020, was 11,141 megawatts (MW). Hydropower accounted for an installed capacity of 6,684 MW.
  • As per National Regulatory Authority for Energy Romania statistics 2021, Romania's hydropower accounts for a 33.9% share of the total energy mix in 2020. This is expected to witness significant growth with upcoming projects like 1000 MW of Tarnita – Lapustesti during the forecast period.
Romania Power Market - Energy Mix

Supportive Renewable Energy Policies to Drive the Market

  • Romania has announced numerous policies to support the renewable energy sector. These policies help meet the obligations set by the European Union (EU) in terms of greenhouse gas emissions through its legislative package.
  • To replicate the growth during 2012-2016, the government is considering multiple programs to drive solar power installations. In June 2020, the government approved a memorandum to implement support mechanisms such as the Contract for Difference scheme (CfD) for low-carbon electricity.
  • Under CfD, the producers enter into a private contract with the nominated counterparty, under which the parties agree on a strike price. The producer sells the electricity at market prices. If the market prices are below the strike price, then the counterparty pays the difference to the producer, and if the market price is above the strike price, the producer pays the difference to the counterparty.
  • The CfD ensures a consistent electricity price to power plant owners, protecting them from market risks associated with electricity price volatility. Given the success of the CfD in the UK and existing obstacles presented by uncertain electricity prices for the power market, CfD is expected to be a major market driver.
  • Under the Energy Efficient House program announced in May 2020, the government would provide up to EUR 15,000 for households installing new equipment to increase their energy efficiency.
  • In 2020, Romania's Ministry of Environment allocated over USD 63.7 million for the Casa Verde Fotovoltaice (green PV home) scheme to support residential solar installations under its net metering regime.
  • According to the International Trade Administration 2021 report, in the country's total electricity production, renewable energy production held a significant share, which comprised hydropower by 34%, wind by 15%, and photo-voltaic above 7%.
  • Therefore, the above supportive renewable policies are expected to drive the Romanian power market in the forecast period.
Romania Power Market - Renewable Energy Mix

Competitive Landscape

The Romanian power market is moderately fragmented. The key players in the market include Romelectro SA, SGS SA, Enel SpA, Siemens Gamesa Renewable Energy SA, and Vestas Wind Systems AS.

Recent Developments

  • In December 2021, Hidroelectrica announced consultation plans to draft a feasibility study for the construction of a 50MW green hydrogen production plant near the Portile de Fier gorge on the Danube.
  • In November 2021, Core Value Capital announced plans to invest over EUR 800 million into new photovoltaic parks in Romania over the next seven years. The new parks are expected to have a total capacity of 1 GW.
  • In March 2021, ReneSola Power announced the completion of the sale of two ground-mounted solar parks in Romania, with a total capacity of 15.4 MW, to European independent power producer (IPP) Alternus Energy Group for USD 28.35 million.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Romania Power Generation and Forecast, in GW, till 2027

    3. 4.3 Romania Energy Mix, 2021

    4. 4.4 Recent Trends and Developments

    5. 4.5 Government Policies and Regulations

    6. 4.6 Market Dynamics

      1. 4.6.1 Drivers

      2. 4.6.2 Restraints

    7. 4.7 Supply Chain Analysis

    8. 4.8 PESTLE Analysis

  5. 5. MARKET SEGMENTATION - BY SOURCE

    1. 5.1 Coal

      1. 5.1.1 Nuclear

      2. 5.1.2 Renewables

      3. 5.1.3 Other Sources (Natural Gas and Oil)

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Romelectro SA

      2. 6.3.2 SGS SA

      3. 6.3.3 Enel SpA

      4. 6.3.4 Siemens Gamesa Renewable Energy SA

      5. 6.3.5 Vestas Wind Systems AS

      6. 6.3.6 Electroalfa

      7. 6.3.7 Sunshine Solar Energy Srl

      8. 6.3.8 Danagroup.hu

      9. 6.3.9 NIVUS GmbH

      10. 6.3.10 CEZ Romania

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Romania Power Market market is studied from 2019 - 2027.

The Romania Power Market is growing at a CAGR of >4.3% over the next 5 years.

Romelectro SA, SGS SA, Enel S.p.A, Siemens Gamesa Renewable Energy, S.A., Vestas Wind Systems A/S are the major companies operating in Romania Power Market.

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