Romania’s solar cell capacity to witness growth due to the phasing out of coal power
GlobalData’s latest report, “Romania Power Market Outlook to 2030, Update 2021 – Market Trends, Regulations, and Competitive Landscape” discusses Romania’s power market structure and provides historical and forecast figures for capacity, production and consumption up to 2030. Detailed analysis of the country’s regulatory structure for electricity market, competitive landscape and a list of major power plants are provided.
The report also provides a snapshot of the power sector in the country on broad parameters of macroeconomics, security of supply, production infrastructure, transmission and distribution infrastructure, electricity import and export scenario, degree of competition, regulatory scenario and future potential. An analysis of the business in the country’s power sector is also included in the report.
Romania has set a target of phasing out coal-fired power by 2032. This is expected to contribute to the development of the renewable energy sector, in particular solar energy. The solar cell capacity in the country is expected to triple during the period 2021 to 2030 and grow from 1.39 GW 2020 to 4.25 GW 2030. The Romanian government is expected to set up a coal commission and phase out coal power by 2032. Several oil-fired plants are also expected to be phased out by the government during the period 2021 to 2030. With the decommissioning of coal power and the decommissioning of oil-fired plants, the country will need to be significantly dependent on gas-fired plants for thermal power production.
The Romanian government has been proactively working for the development of the renewable sector in the country. Two important reasons for this proactive approach are the phasing out of coal-fired power plants in the country and meeting the energy and emissions targets according to the National Energy and Climate Plan (NECP). The government plans to introduce Contract for Difference (CfD) systems inspired by the UK’s CfD system for the renewable sector. The system is expected to be launched before the end of 2022 and the Romanian government expects that it will increase the development of renewable energy in the country. Offshore wind turbines, which are expected to start operations from 2029, will further help replace the decommissioned thermal power capacity.
Romania has set a target of 30.7% renewable share of its total power capacity mix by 2030. This is set to drive the market for renewable energy in the country, especially for wind power and solar technology. This will also provide opportunities for transmission and distribution infrastructure developers as the country would be keen to integrate renewable energy sources into the national grid. Rapid solar cell capacity additions will help the country increase its electricity production and thereby reduce power imports from neighboring countries, which have been high in 2019 and 2020.
Romania has large fossil fuel reserves and well-developed electricity infrastructure. The country has a balanced mix of thermal power, hydropower and nuclear power. Oil and gas production in the country has declined due to exhaustive reserves and unfavorable government policies. This makes the country dependent on Russia for gas imports. The government is also investigating the possibility of producing shale gas. However, shale gas recycling has become a debatable issue in the country due to environmental considerations, such as possible groundwater pollution and earthquakes.
The country was a net exporter of electricity for the majority of the last two decades. In 2019 and 2020, however, electricity imports increased sharply due to reduced annual power production caused by the closure of several thermal power plants in the country. Romania is striving to get more of its power needs from renewable sources. The country is seen as a rapidly growing market for wind power in the south-eastern European region and the start of offshore wind farms from 2029 will further strengthen the wind power market.