Post by superman on Oct 16, 2007 11:07:50 GMT -5
Romania - a New Energy Tiger
of Central and Eastern Europe?
rbd.doingbusiness.ro/2005_02/raef_art_sec.pdf
Romania has been recently named, due to the spectacular growth of its economy, “the new tiger of South East Europe”.
Romania is the second largest country of Central and Eastern Europe, some experts consider its
geo-political positioning as having a strategic importance leading to a major role. The country still
holds underground reserves of oil, gas, coal and is successfully developing a nuclear power
technology based on the abundant natural uranium reserves and heavy water produced locally,
while its hydro power generation covers above 25% of the demand. Such considerations may lead
to the conclusion that Romania might enjoy a better energy dependency situation than an average
EU member. Romania has successfully closed Chapter 14 – Energy in EU accession negotiations.
Romania has successfully privatized Petrom, Electrica Banat, Electrica Dobrogea, Electrica
Moldova, Electrica Oltenia, Distrigaz Nord, Distrigaz Sud, etc and prepares other milestone
privatizations.
Having in view the above, based on a constant economic growth and an improvement of the
perception of the business environment, Romania is again on the European/global map of strategic
investors. Billions of EUR/USD wait at the borders for attractive projects.
On the background of the above considerations, the present paper attempts an answer to natural
question like “Is Romania really an “energy sector tiger” of Central and Eastern Europe?”
Below will be analyzed different aspects of the Romanian energy sector and of the regional status,
which can lead towards an answer to the above question. The statements and arguments will be
grouped on two different families:
• “Yes!”, meaning “yes, Romania is clearly an energy tiger of South-Eastern Europe…”
• “Not exactly” – arguments which introduce doubts or even negation of the above statement(s).
When discussing general issues related to the energy sector, the following arguments may lead to
the “Yes!” answer:
• Romania is the largest oil producer in the area;
• Romania is the largest gas producer in the area;
• Romania has the second largest number of inhabitants/consumers;
• Romania has the second largest installed electricity generation park;
• It is also a senior contributor to stability of Balkan electricity network (SEEREM – South East
Europe Electricity Market, UCTE);
• The country is also a promoter of important Trans-European Networks projects;
• It has developed the most liberalized electricity and gas markets in the area;
• Chapter 14 – Energy – on European Union accession negotiations has been provisionally
closed after most technical negotiations, which constituted an excellent occasion for deep
understanding of the EU and European Commission requirements;
• Romania is the most advanced country in the field of nuclear safety in the area;
• Romania can still yield sustainable primary energy resources: coal, hydro, nuclear;
• Significant investment is underway in promoting competitiveness in the Romanian energy
sector (regulation, market infrastructure)
However, the following arguments may lead towards the “Not Exactly…”answer
• In Romania, hydrocarbons resources deplete quickly;
• The largest flows of primary energy tend to by-pass Romania (Russia - EU, Iran/Iraq - EU);
• Romania is placed at South of EU-NIS electricity interface (“the electricity iron curtain”) – as a
consequence the foreign electricity trade is not spectacular;
• Romania still demonstrates a slow pace in promoting Renewable Energy Sources;
• The Romanian economy still yields disappointing energy efficiency benchmarks;
• The fast liberalization/privatization processes have widely opened doors for energy imports;
• One could notice a lack of serious protective measures for indigenous energy companies, and
these protective measures become harder and harder to implement as adoption and
implementation of EU competition rules advances;
....and much more..
of Central and Eastern Europe?
rbd.doingbusiness.ro/2005_02/raef_art_sec.pdf
Romania has been recently named, due to the spectacular growth of its economy, “the new tiger of South East Europe”.
Romania is the second largest country of Central and Eastern Europe, some experts consider its
geo-political positioning as having a strategic importance leading to a major role. The country still
holds underground reserves of oil, gas, coal and is successfully developing a nuclear power
technology based on the abundant natural uranium reserves and heavy water produced locally,
while its hydro power generation covers above 25% of the demand. Such considerations may lead
to the conclusion that Romania might enjoy a better energy dependency situation than an average
EU member. Romania has successfully closed Chapter 14 – Energy in EU accession negotiations.
Romania has successfully privatized Petrom, Electrica Banat, Electrica Dobrogea, Electrica
Moldova, Electrica Oltenia, Distrigaz Nord, Distrigaz Sud, etc and prepares other milestone
privatizations.
Having in view the above, based on a constant economic growth and an improvement of the
perception of the business environment, Romania is again on the European/global map of strategic
investors. Billions of EUR/USD wait at the borders for attractive projects.
On the background of the above considerations, the present paper attempts an answer to natural
question like “Is Romania really an “energy sector tiger” of Central and Eastern Europe?”
Below will be analyzed different aspects of the Romanian energy sector and of the regional status,
which can lead towards an answer to the above question. The statements and arguments will be
grouped on two different families:
• “Yes!”, meaning “yes, Romania is clearly an energy tiger of South-Eastern Europe…”
• “Not exactly” – arguments which introduce doubts or even negation of the above statement(s).
When discussing general issues related to the energy sector, the following arguments may lead to
the “Yes!” answer:
• Romania is the largest oil producer in the area;
• Romania is the largest gas producer in the area;
• Romania has the second largest number of inhabitants/consumers;
• Romania has the second largest installed electricity generation park;
• It is also a senior contributor to stability of Balkan electricity network (SEEREM – South East
Europe Electricity Market, UCTE);
• The country is also a promoter of important Trans-European Networks projects;
• It has developed the most liberalized electricity and gas markets in the area;
• Chapter 14 – Energy – on European Union accession negotiations has been provisionally
closed after most technical negotiations, which constituted an excellent occasion for deep
understanding of the EU and European Commission requirements;
• Romania is the most advanced country in the field of nuclear safety in the area;
• Romania can still yield sustainable primary energy resources: coal, hydro, nuclear;
• Significant investment is underway in promoting competitiveness in the Romanian energy
sector (regulation, market infrastructure)
However, the following arguments may lead towards the “Not Exactly…”answer
• In Romania, hydrocarbons resources deplete quickly;
• The largest flows of primary energy tend to by-pass Romania (Russia - EU, Iran/Iraq - EU);
• Romania is placed at South of EU-NIS electricity interface (“the electricity iron curtain”) – as a
consequence the foreign electricity trade is not spectacular;
• Romania still demonstrates a slow pace in promoting Renewable Energy Sources;
• The Romanian economy still yields disappointing energy efficiency benchmarks;
• The fast liberalization/privatization processes have widely opened doors for energy imports;
• One could notice a lack of serious protective measures for indigenous energy companies, and
these protective measures become harder and harder to implement as adoption and
implementation of EU competition rules advances;
....and much more..