While the energy transition sounds revolutionary, it is actually a balanced mix of new and old, between innovative (or smaller-scale) technologies and traditional technologies that involve extracting and processing hydrocarbons or coal.
At present, we believe that it is necessary to follow two trends in the energy sector: the increase in the amount of energy produced in Romania and the diversification of technologies. National Statistics Institute, quoted by cursdeguvernare.ro shows that 2024 was a challenging year: weather conditions led to a decrease in the amount of hydropower produced, there were unplanned outages at the Cernavodă nuclear power plant; in addition, high temperatures over a relatively long period of time led to increased energy demand. These situations led to the need to import energy at high prices. In these situations, we believe that it is necessary for all those involved in the energy sector - political decision-makers, companies and energy specialists - to work together to develop new sources of production.
It is very important for our country to have:
- Locally produced energy. In the still turbulent geopolitical context, local production is the safest. Energy independence is a goal in which the energy sector fully believes. In fact, every Romanian, by supporting new technologies, can help to achieve it.
- Cheap energy and physically accessible, allowing fair access for the entire population. Renewables can be a solution for achieving lower prices. It is also important to maintain and create the infrastructure for traditional technologies such as natural gas.
- Competitive energy sector. It is not only industry that needs to stay competitive, but also the energy sector. Among the factors influencing competitiveness recognized by European CommissionThese include the high price of certain types of energy, shortages of certain raw materials, disruptions in the supply chain and a lack of professional skills among employees.
Romania. Rich country, solid energy mix
Romania is one of the countries that enjoys a diversified energy mix, which already includes a large amount of renewable energy (especially hydropower), but also solar, wind. We are also developing nuclear energy, which is already present in the country. The country's rich resources mean that part of energy production is based on conventional fuels - natural gas, but also oil and coal.
Romanians must be aware that the existence of this diversity is an asset in itself, which we must maintain. Also, the operation of units producing energy with conventional fuel, as long as climate objectives allow, means:
- Secure energy supply until renewable technologies mature;
- Job continuity and a respite to prepare staff for future work in the area of new technologies;
- Often, affordable energy, until markets for new fuels are created to enable them to achieve competitive prices.
Another important concept for the transition and for Romania is "technology neutrality", i.e. the use of a variety of energy production and decarbonization support technologies to test their efficiency and attractiveness in the market, not on theoretical models, but on the basis of their efficiency and attractiveness.
Oil and gas companies are preparing tomorrow's green technologies today
In recent years, oil and gas companies in all three segments - downstream, upstream and midstream - are showing an increasing openness to new carbon-friendly energy production technologies. This transformation is driven by the need to lower the overall carbon footprint of their business, but also by the desire to adapt to new market conditions that demand clean energy.
Lately, we can observe more and more "green" projects carried out by the member companies of the Federation of Oil and Gas Employers. We list and briefly describe just a few of them:
BIOMETAN
BSOG Energy (Black Sea Oil & Gas) and DN AGRAR Group signed in October 2024 an agreement for the largest biomethane production project in Romania, with a capacity of up to 15 MW and an estimated investment of more than 30 million euro. The project, which will take two years to implement, involves the use of manure from DN AGRAR, the largest integrated farm in Romania, as feedstock for biomethane production. This will be secured through a long-term contract between the two companies, ensuring the continuity of the project. The project could later be expanded to a capacity of more than 20 MW with additional feedstock.
HIDRO
OMV Petrom invests in many types of renewable energy, including hydropower: in a transaction with the Renovatio Group, OMV Petrom acquired renewable power generation assets; 2 MW hydro and 16 MW wind. OMV Petrom also acquired a 50% stake in Electrocentrale Borzești from RNV Infrastructure in early 2024. It owns renewable energy projects with a capacity of around 1,000 MW, of which 950 MW wind and 50 MW PV.
NATURAL GAS - TRANSITION FUEL
ROMGAZ acquired the Iernut Thermoelectric Power Plant in 2013. This power plant has an installed capacity of 800 MW, comprising "6 energy groups: 4 groups of 100 MW each of Czechoslovak manufacture and 2 groups of 200 MW each of Soviet manufacture, which were commissioned between 1963 and 1967.". Due to the non-fulfilment of environmental conditions, the operation of the units was stopped and a process of retrofitting is underway.
But the outlook is good after many delays, says Sebastian Burduja, Minister for Energy:
"Also today they had a discussion with ROMGAZ. They are in constant dialog with Duro Felguera, the general contractor from Spain. It's a contract that has been resumed, blocked for years, resumed after great efforts, financial and diplomatic, from all points of view. At the moment, by the end of this year, i.e. by December, we want to finalize the acceptance of the civil works, to be able to start the first tests on at least one gas turbine. The maximum deadline that Romania can accept is somewhere in the middle of next year. But it is a good thing that the project will be practically handed over this year and the tests will start".
