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New Government and 11 priority areas for energy in the 2017-2020 government program

4 January 2017
Economics&Markets
energynomics

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The PSD ALDE Cabinet led by Prime Minister Sorin Grindeanu, which includes 26 ministers, was sworn by the Parliament with 295 votes “in favor” (232 were needed) and 133 “against”. The new government submitted the investiture pledge at the Cotroceni Palace. President Klaus Johannis wished the new ministers to have a “successful mandate.” “I expect that you keep clear, visible and declared an Euro-Atlantic orientation of Romania,” said the president, who insisted on several priorities: “Many expect that you do all you can to support an independent justice in Romania. That means strengthening the rule of law. […] You sworn that you will do everything you can for a mature democracy in Romania. A democracy without independent justice, without the rule of law, it something one cannot imagine in Europe.”

The designated Prime Minister Sorin Grindeanu presented today in Parliament the 2017-2020 Government Program. In the energy sector, Romania’s vision should focus on the energy security of supply for its citizens, based on trust and real solidarity, essential criteria of the new European energy union that must become a single voice in the energy field, says the government program, in terms of energy policy.

The Grindeanu Cabinet presented in an extraordinary session of the Senate and Chamber of Deputies, 11 priority measures meant to ensure energy security and energy efficiency. The pillars of the new strategic approach, defining the way forward for Romania, are secure, sustainable, competitive energy, at affordable prices, within a framework of security, solidarity and trust.

“We have an outdated, polluting and inefficient energy system. From 100 energy units of primary rerosurces, only 15% reach the final consumer. This disadvantage must be transformed into an opportunity and a strategic goal: the efficiency of the energy system has qualitative, direct and immediate consequences upon the decrease of the energy prices and the increase of the quality of life of citizens by improving environmental quality,” it is stated in the document prepared by the PSD.

In order to ensure the energy security and energy efficiency, the energy system must advance simultaneously on the following directions:

  • To maintain an energy mix through the diversification of the sources and technologies for energy generation, to promote renewable energy and conversion technologies with low-carbon emissions for electricity, heating and cooling;
  • The decarbonisation of the transport system by switching to alternative fuels;
  • Energy market liberalization and the interconnection of the energy systems with the “smart” networks and communication network for complementary and interactive services;
  • Elimination (minimizing) the dependence between the economic development and the environmental degradation by providing clean energy, secure and at affordable prices;
  • Policies to increase energy efficiency and promoting low-carbon technologies, combined with a stable market for carbon emissions can impact the direction and the behavioral changes. Since 2016, after the new Post-Kyoto Treaty had been signed, the energy sector entered into the most important period of transition in its history. This transition requires the redrawing of Romania’s energy policies, a new strategic approach and redefining the priorities focusing on the Research – Innovation activity and supporting, promoting new technologies on energy storage, smart grids and energy efficiency measures throughout the system.

The measures outlined in the government program

  1. Ensuring the national energy security by monitoring the contracts negotiation procedure and ensuring the transparency of these procedures. Therefore, Romania will consider all the options, including the renewable energy, coal or nuclear power.
  2. Implementing the National Investment Plan and making it one of the objectives of the Energy Strategy of Romania for the period 2017-2020, by redefining the energy policies, so that Romania to become a regional power pole.
  3. Revitalization of the coal production which remains an important component of Romania’s mix of primary energy resources.
  4. Strengthening the nuclear energy production, as a pillar of security in the electricity generation and for reduced CO2 emissions. The standard economic life span of the CANDU 6 units can be doubled up to 60 years by completing a revision and retubation of each reactor after 30 years of use.
  5. Increasing the hydropower potential by implementation of the development program for reaching the hydropower potential which will ensure the increase of the amount of electricity from renewable sources (including hydropower capacities of over 10 MW) up to 43% in 2020; this level will stabilize at about 42% of the hydropower potential. For the period 2017-2035, the hydropower sector can participate in the national electroenergetical system with an installed capacity of about 6.500 MW.
  6. Strategic support for an increased share of electricity within the energy consumption in Romania. The future key element in energy is the expansion of usage of the electricity especially in public transportation, food preparation, heating / cooling, etc.
  7. Increased capacity in the power plants from Dobrogea and Moldova, notably through the installation of new power plants based on renewable energy. Renewable energy sources will ensure, in the medium term, 60% of Romania’s electricity production.
  8. Promoting the electricity production from renewable energy sources (E-SRE) is an imperative for Romania and the European Union, justified by environmental protection, the increase of energy independence from imports by diversifying the energy supply sources and for economic and social cohesion reasons.
  9. Energy efficiency should be treated as a “national program” that will be implemented for decreasing both the annual consumption peak and the domestic energy consumption.
  10. Proposals in order to amend the legislative framework by reconsidering the Law 123 / 2012 for electricity and natural gas, in the new context of redefined EU energy policies. [Promoting] The Law of thermal energy for an unified approach of hot water, heat and cooling supply for all the households in Romania.
  11. National programs proposed, focusing on Romania’s country advantage. A National Program for Educating and Informing the Consumer upon energy efficiency, as well as creating electronic platforms with concrete offers regarding high-efficiency household equipment as well as the list of ESCO companies and suppliers and their offers in order to transform the CONSUMER into a PROSUMER. Funding from PNAER, European funds, tariffs etc.

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