Robotul Minerva ca: 
Stagnation in Renewable Installations Despite PNRR Funding
Source: National
Throughout 2023, despite the billions of euros allocated through the National Recovery and Resilience Plan (PNRR), Romania witnessed a concerning trend in renewable energy. The nation managed to install just under 300 MW in photovoltaic panels, capable of generating a maximum of 30 MW. Despite a marginal increase, the decline in energy production from this renewable source persisted, recording a 6.4% drop according to the National Institute of Statistics (INS).
Urgency in PNRR Investments as Production Remains Stagnant
Romania is left with only two years to complete PNRR investments, including projects for renewable energy production capacities. However, progress appears stalled as only 296 MW from photovoltaics and 28.13 MW from wind energy entered the system from January 2023 to mid-February 2024. This translates to an average annual production of approximately 30 MWh.
Distribution Network Investments Key to Sustainable Growth
The major hurdle lies in the absence of investments in distribution networks. Post-privatisation, companies utilised the infrastructure without modernising or expanding it. With the EU’s significant overhaul of the energy system, connecting to the grid becomes a near-impossible mission without the reconfiguration of distribution networks. Despite substantial distribution tariff hikes, some exceeding energy costs, foreign companies now receive funds from the Romanian government, through the Modernisation Fund, to rehabilitate and expand these networks.
Minister of Energy’s Commitment to Network Modernisation
The Ministry of Energy announced the signing of 47 contracts with distribution operators, totaling €680 million in state aid. Sebastian Burduja, the Minister of Energy, stated that these investments would contribute to the modernisation of electricity distribution networks, enhance capacities for new prosumers, boost renewable energy production, and digitise networks through the introduction of smart meters, with a focus on major urban communities.
Rise in Hydropower Amid Overall Energy Decline
In the period from January to December 2023, primary energy resources decreased by 2.9%, while electricity resources increased by 2.4% compared to the same period in 2022, as reported by the National Institute of Statistics. The main primary energy resources totalled 32,897.7 thousand tons of oil equivalent (tep), a decrease of 979.0 thousand tep from the period of January to December 2022.
Energy Production Breakdown: Challenges and Opportunities
Holding at 17,924.5 thousand tep, the internal production saw a decrease of 148.8 thousand tep (0.8%) compared to January-December 2022. However, the production from hydroelectric plants witnessed an encouraging surge of 31.4%, reaching 18,621.4 million kWh. Wind energy production increased by 8.8%, while solar energy from photovoltaic installations experienced a decline of 6.4%.
Changing Consumption Patterns in Romania
In the same period, the final consumption of electricity decreased by 5.2%, totalling 49,042.2 million kWh. The final consumption within the economy dropped by 4.1%, while public lighting experienced a significant 17.5% decrease. Meanwhile, population consumption declined by 7.9%, as reported by INS.
Renewable Sources Dominating January 2024 Production
Breaking down the energy produced in January 2024, hydropower contributed 28.1%, followed by hydrocarbons (24.0%), nuclear (18.9%), wind (14.8%), coal (12.2%), photovoltaic (1.3%), and biocomponent (0.8%). The data reveals a delicate balance between the growing influence of renewable sources and the challenges faced in the energy landscape.
Editor: Andreea Gudin
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