Since August 1, Ondřej Šafář is the new Country Manager of CEZ in Romania, replacing Martin Zmelik, who has led for nearly 5 years the CEZ Group’s operational activities here. 2017 was marked by the results of the operational success, as CEZ România was in the black with a 420 million lei net profit, an increase of 651 million lei compared to 2016. energynomics.ro welcomed Mr. Ondřej Šafář, and questioned him about the Group priorities in the near future.
Dear Mr. Ondřej Šafář, you only came to România for a few months. However, you have a significant knowledge on România from the years, before working in Bulgaria and Turkey. How do you see the local energy landscape at present and how do you find the CEZ organization in Romania as compared to the situation you were familiar with in the past?
I am very happy to be here again in Romania after more than six years. I cannot forget that my career within CEZ Group started here in 2005. I am impressed with the achievements of the local team in the past six years, since I left România for other responsibilities. When you are involved in the day by day activities, you do not see the development very clearly, but when you are away, the changes are more visible.
When I told my colleagues in Turkey that I’m leaving for Romania, some of them told me that Romanians are very proud to work for CEZ. This energy that comes from the people will help us continue the running projects (such as Smart Transformation) and develop new ones.
As for Romania, I have the same good opinion about this country as I had when I left in 2012. It is obvious that products, services and the infrastructure are more developed than 6 years ago.
From Prague to Bucharest is longer a distance than from Bucharest to Ankara. I supposed you flied these routes frequently in recent years, not only in geography, but also in culture, regulations, and history. How is the Romanian energy market compared to those in Bulgaria and Turkey?
If I were to compare these three markets, the major criterion that I would consider is the competitiveness and I can state that in this moment, Romania is the most developed from this perspective and therefore the most attractive. Not only from the perspective of an investor, but also from the perspective of the customers, a fully liberalized and competitive market makes it highly appealing. A vivid proof of the matter is the fact that even some players from Telco industry are active on the market.
The Bulgarian electricity market is currently shaped as a hybrid model. The supply of electricity at wholesale and retail level operates with both ‘regulated’ transactions (tariffs are determined by the electricity regulator) and liberalized segment for ‘free’ transactions, where electricity is supplied at freely negotiated prices.
In what it regards Turkey, it is definitely a huge market as there are 21 distribution regions with different levels of development, varying from Istanbul, which is a large city, to the Eastern part of Turkey, with limited electrification. Also, Turkey’s main strategy is to be fully energy independent and it focuses its diversification of energy sources on local resources and domestic production including coal and renewables. Capacities from these are set to grow further in the share of the country’s total energy mix. Turkey also opened solar and wind tenders to maximize the use of local resources.
What is more important in your opinion for the CEZ businesses in Romania, at the moment: the outside (clients, contractors, regulations etc.), or the inside (team optimization, financial flows, procedures etc.)?
We will continue to bring digitalization into our activity aiming to improve ourselves daily so we can offer our clients high quality services. For us, energy comes from the people and all our dedication will continue to be directed towards our clients in order to set the proper environment so they can enjoy the comfort of their homes, to be able to have the time and energy for their loved ones.
You were part of the team involved in starting the wind project in Romania. For some time, there was a discussion about selling the park at Cogealac-Fântânele. At present, this asset seems to be very important for CEZ in Romania. Is it a lucrative part of your business here in financial terms? Are there any perspectives for improved efficiency of the wind business of CEZ in Romania?
We are satisfied with the results of CEZ Windfarms in Romania, although there are still things to be resolved within the legislation. It is a valuable investment and still the biggest on-shore wind park in Europe, 8 years from commissioning.
CEZ Windfarms in Romania is a great asset both for CEZ as an investor and also Romania in terms of green energy produced, contributing to the general targets of renewable energy. Only in 2017, CEZ Windfarms generated more than 1.3 TWh, that is over 17% of the wind energy produced in Romania and approximately 6% of the total renewable energy production in Româania. Also, energy efficiency is in constant focus. From turbine increased efficiency to storage concerns, from wind forecast to improved results on energy, we are working on projects to overcome the predictability and stability of the wind generated energy and also to improve efficiency of the activity. We can say that CEZ Windfarm was a pioneer on the windfarms market in Romania considering the settlement of the activity and construction and we aim to sustain this title through related activities and initiatives.
In distribution business, the public attention is focused on investments for upgrading the existing networks. Still, smart metering and all the associated smart solutions are the future, anticipating more decentralized generation, more renewables, and prosuming. How do you balance these two directions of investments in Romania?
The answer is within one of the streams of our Smart Transformation project developed in the distribution company. We aim at collecting data from our energy grid, centralize it and extract the relevant information in order to make the best decisions when it comes to fast reactions needed to ensure the continuity and high quality of the energy distribution service. This type of information is a major asset for selecting key areas where investments are needed in relation to the development of more decentralized generation, more renewables, and prosuming and in order to support them when and how it will be the case.
Energy poverty is one particular issue to become more prominent in Romania in the next years. What are your views on the role a powerful group like CEZ might play in this regard?
We hope that this will not be the case. Romania’s macro-economic indicators improved very much during the last years. However, there will be always a segment requiring kind attention and support.
We are in close relation with the relevant authorities and we are always ready to support them in finding the best solution for the communities. Whether we are talking about optimized technical approach for legally connecting the people that need energy in their homes, or supporting the documentation procedure for subsidies, the companies within the Group are always paying attention to the matter.
Also, CEZ Group in Romania has an intensive CSR activity in the region. The investments made were not directed only towards communities (schools, hospitals, roads, sport facilities, festivals, social causes supported through Oltenia Marathon), but they also aimed to improve the life of people, even from nursing homes and foster care places for children. We truly believe that energy comes from the people and several of our CSR projects are driven by CEZ employees committed to the local communities.
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This interview firstly appeared in the printed edition of energynomics.ro Magazine, issued in September 2018.
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