The emerging markets in CE, SE and Eastern Europe include Romania, Poland, Hungary, Turkey, Serbia.

The emerging markets in CE, SE and Eastern Europe include Romania, Poland, Hungary, Turkey, Serbia.
The emerging markets in CE, SE and Eastern Europe include Romania, Poland, Hungary, Turkey, Serbia, Lithuania.

Wednesday, 5 April 2017

Renewable Energies in Romania - Opportunities for Foreign Companies

Romanian renewable energy production based on solid waste is expected to continue to increase at medium term mainly based on the introduction of modern and efficient technologies, with a focus on the rural areas which have direct access to the biomass sources. 

FRD Center considers that there are numerous opportunities for foreign companies involved in Renewable Energies, Cleantech, Waste-to-Energy Technologies, Utilities Management and Automation, Smart Grid Technologies, Waste Management, Biomass and Biogas utilisation, Cogeneration etc. to do business in Romania.

At the same time, the use of waste from natural sources - such as wood, manure - for energy production is expected to be balanced by shifting focus on selective municipal waste collection, recycling and recirculation of raw materials rather than incineration, which is the most utilised action at present.

According to players in the Romanian renewable energy sector, the local awareness of the technology related to biomass sector and their economic benefits has advanced enough to encourage projects in order to reduce the cost of electricity and thermal energy, ensure access to energy sources close to the place of consumption in areas that not connected to gas or electricity networks, new job opportunities etc.

One of the main topics of interest in Romania is the intelligent exploitation of biomass, particularly the biodegradable municipal waste.

In October 2016, the Romanian Ministry of Development and European Funds published a draft of a Government Decision which provides a scheme totaling more than 100 million euros to support investments in energy production from less exploited renewable resources, namely biomass, biogas, geothermal.

The maximum level of support that may be granted to a beneficiary must not exceed 15 million euros for an investment project.

The measures promoted by this law are expected to be realized within The Priority Axis 6 – Promoting clean energy and energy efficiency to support a low-carbon economy, specific objective. 6.1. the increase of the energy production from less exploited renewable resources (biomass biogas, geothermal), from the Big Infrastructure Operational Program 2014-2020.

Currently in Romania the total annual production of energy from renewable sources is about 6550 ktoe. The unused technical potential is approximately 8000 ktoe with the following shares:
  • biomass and biogas – 47%
  • solar energy – 19%
  • wind energy – 19%
  • hydro – 14%
  • geothermal – 2%
Waste-to-Energy is a hot topic in Romania for a multitude of reasons, including for the benefits generated by the Green Certificate scheme. According to the latest legal ammendments, these will be valid for the entire period of the support scheme operation, until 2032.

Another reason is the availability of waste and sub-products from the agricultural and forestry sectors. The potential of biomass and cogeneration usage in Romania, as an alternative to fossil fuels, is a reality which attracts serious attention of both local and international players from countries such as The Netherlands, Finland, Germany etc. 

The number of Green Certificates traded in January 2017 on the Green Certificates Centralized Market (PCCV) amounted to 6,371 units, a figure seven times bigger than that of the similar period last year, when 906 units were traded, according to data released by OPCOM, Romania's electricity and natural gas market operator.
In January, 56 sales offers and seven buying offers were launched, at a price of 132.404 lei per certificate.

Also, biogass from manure is a viable option for thermal power and cogeneration for Romania's many animal farms and food processing industry. 

FRD Center is monitoring the renewable energies sector and currently up-dating the sector data, as well as its database of players in the Waste-to-Energy - biomass technologies importer-distributors, biogass potential users, importer-distributors of equipment and technologies, EPCs (Engineering Procurement Construction) etc.

The potential of biomass from manure in Romania is based mainly on swine and poultry husbandry activities as they are the most organized industrial animal husbandry sectors and generate more than 75% of total estimated manure quantities / year.

According to the Romanian Ministry of Agriculture, in 2016 there were:
•2,081,233 heads of cattle
•4,478,596 heads of pigs
•85,096,537 heads of poultry

The production of biofuels and biogas is considered to have a high potential in Romania. In 2015, the production was 1,500 GWh for biofuels and 450 GWh for biogas.

Currently a number of legislative documents are under preparation, such as the New Heating Law, which debates to set a 50% share of the energy produced (heat) for the domestic / district heating to be obtained from bioenergy sources, and the Biomass Law, whose main purpose is the creation of a transparent and stable framework for investors.

In Romania, the heat market is regulated by the Romanian Energy Regulatory Authority. Urban heating is provided by district thermal plants and old-style cogeneration plants running on natural gas and coal or oil. Many of the district heating plants were built in the 1960s and 70s and currently need rehabilitation and modernization. Due to the high losses in the district system and low efficiency of the plants, a large number of disconnections have occurred, leading to individual thermal plants implementation. The cogeneration in district heating sector in Romania is being re-discovered as the most promising option to reduce the costs and the greenhouse gas (GHG) emissions of district heating operators.

According to the latest data published by the National Institute of Statistics, the total area of the forest land in Romania was 6 544.6 thousands hectares in 2014, accounting for 27.3% of the total country area. According to the same source, the production of fire wood in Romania in 2014 was of 4.86 million m3, while in 2015, it was of 5.08 million m3, 4.5% more than in 2014.

According to ASFOR, in Romania are harvested annually approx. 19 million cubic meters of timber, of which 12 million cubic meters for the industrial processes, and the difference of seven million cubic meters for heating and other uses.

Funding is available both from Governmental and EU sources, as well as from private sources. As an example, the Priority Axis 6 under EU POIM program is dedicated to promoting clean energy and energy efficiency for a low carbon economy (total allocation 197.3 million Euro). Similarly, the National Rural Development Program (PNDR) 2014-2020 with a total allocation of 9,36 billion Euro has a line of financing for investments in agricultural holdings to integrate energy efficiency measures and Renewable Energy Sources. The measures encourage investments in installations for electrical or thermal energy production by using the biomass residues resulted from own farming activity as well as other sources.

Should the developments and opportunities in the Renewable Energies and the Waste-to-Energy Management sector in Romania and in other Emerging Markets in Europe be of interest to you perhaps we can collaborate. 

The RoEnergy South East Europe event takes place in Bucharest at the end of June - this could be a good opportunity for you to come and meet relevant local counterparts and potential clients. The FRD Center team can arrange for you a Business Itinerary with 1-2-1 meetings and visits to relevant players. 

For more details feel free to contact the FRD Center team at: email: europa@frdcenter.ro or tel: +4021 411 1459/60/61

FRD Center provides market research in Eastern Europe and the region, B2B matchmaking in the CE Europe and SEE, M&A assistance in Romania, in CEE and SEE, in the Emerging Markets in Europe.

For the FRD Center B2B matchmaking services in Romania and other Emerging Markets in Europe consult: http://market-entry-romania.blogspot.ro/2016/09/b2b-matchmaking-services-in-romania-and.html

For the FRD Center Market Research and Competitor Analysis in Romania and other Emerging Markets in Europe consult: http://market-entry-romania.blogspot.ro/2017/01/market-research-and-competitor-analysis.html

For the FRD Center Market Research, In-Depth Analysis, Competitor Profiling in the Emerging Markets in Europe consult http://market-entry-romania.blogspot.ro/2017/04/market-research-in-depth-analysis.html



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