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Romania is highly attractive for "green" investments

Romania is highly attractive for "green" investments

The legal and economic framework conditions for investments in renewable energies in Romania were the main topic at an event which was held at the L-Bank Stuttgart at the end of March and to which the honorary consul for Romania in Baden-Württemberg and the Romanian liaison office were invited. TMG expert Alexandru Popovici was also one of the speakers.

As the TMG Consultants Regional Manager for Eastern Europe explained, Romania has an unusually high energy potential, above all, from wind and solar energy, as well as from agricultural biomass. Although the proportion of renewable forms of energy within overall energy production already equals more than a third, green energy projects are still being supported by the Romanian state, and the connection to the mains network is being simplified. Popovici is convinced that, "for any interested businesses from the energy sector, Romania offers very attractive market opportunities, not only because of its size and more than 22 million customers, but also because of the many possible ways of generating energy, and the subsequent state funding."

In his speech, the TMG expert particularly focused on the special technical aspects that have to be taken into consideration when carrying out energy projects in Romania. "In general, carrying out the projects is similar to the process we all know from classic greenfield projects. However, without considerable knowledge of local particularities, these projects also carry the relatively high risk of learning the hard way."

Knowledge of local particularities is the key to success

According to Popovici, together with common location-related risks such as obscure ownership structures and a lack of support from local approval authorities, unpleasant and costly surprises also sometimes threaten negotiations with local energy operators: "Some operators exploit their monopoly without compromise. Negotiation processes are extremely lengthy. Decisions can be protracted for an unbelievably long time."

But as Popovici stresses emphatically, ambitious energy projects can also go off in Romania without a hitch and without significant time delays. For a project to be successful, it must be well planned and well carried out. There must also be a solid financial foundation from the beginning – consisting of a company's own means, bank loans and means from EU funds. The experienced project manager also considers having an established network of expert specialists "on site" to be equally important: "With well-founded knowledge and experience of Romania, risks and obstacles associated with "green" energy projects in Romania can be kept under control, and the projects can be carried out successfully, on time and in budget."

The Vice President of the Romanian National Regulatory Authority for the ANRE energy sector, Emil Calota, and the Secretary of State from the Energy Ministry, Mr. Maricel Popa, who traveled from Bucharest specially for this event, provided interesting details about important regulatory and financial framework conditions for renewable energy projects.

The economic forum, which was attended by approximately 100 selected representatives from companies from the energy sector and engineering, from banks and insurance companies, as well as from public institutions, closed by focusing on concrete examples of biogas and photovoltaic plants that have been opened in Romania.