Romania possesses strong potential across the Renewable
Energy sector.
In 2010, these resources
were largely untapped.
Romania provides an attractive
location for green energy investors, developers and operators
looking for alternative markets outside the conventional
Western European countries. Although over 30% of Romania's
electricity production comes from renewable sources. When
excluding large hydro, not included in the EU renewable
targets, this percentage falls to less than 3%. .
Recent developments, however,
have determined Romania is emerging as one of the most interesting
Renewable Energy markets in the region.
In 2010, wind projects represent
the main focus. According to the Romanian Association for
Wind Power, Romania's wind power capacity is expected to
reach 545 MW in 2010, as compared to 14.1 MW installed capacity,
as of 2009. 2011 and 2012 are projected to become even more
promising, with an estimated installed capacity of up to
2,000 MW, by the end of 2012.
Despite soaring hopes for
the future, the development of this sector poses nonetheless
a great deal of challenges, including:-
- in some instances land
registration issues and
- bureaucracy in general,
- limitations of the national
power grid system, as well as
- potential complexities
in absorbing prospective imbalances in power production.
Romania’s RES potential.
Thanks to its marine climate,
southern location and varied geography, Romania shows a
remarkably extensive RES potential. Between the entire theoretical
potential and the technically and economically feasible
one, there is nonetheless a significant gap, creating discrepancies
between the theoretical hierarchy of the different renewable
sources potential and the practical orientation of actual
projects.
In terms of theoretical potential,
biomass and biogas account for an overwhelming 65% of the
total "new" RES potential (excluding large Hydro) of around
135 TWh/year (cumulating both electric and thermal energy),
with wind and solar accounting for 17% and around 12%, respectively.
In practice, the supply chain for Biomass is the current
weak link, that will only be resolved as institutional investors
invest in the sources of raw fuel materials (forestry &
agriculture). In 2011, the critical mass has not been reached
to secure a stable long term forecastable supply chain for
Biomass fuels.
Small hydro (under 10 MW)
and geothermal energy register a relatively low share in
the total, with 4% and 1%, respectively. However there is
a high demand for Small Hydro projects from inward investors
and also existing investors in Wind projects that are seeking
to balance their volatile energy production.
In terms of geographical
spread, renewable energy resources are theoretically available
on the entire Romanian territory, but there are major differences
in their distribution by type and exploitation capacity.
Biomass
Biomass carries the highest
theoretical potential for green energy production in the
country, amounting around 88.33 TWh per year. So far, biomass
usage has mainly focused on household firewood: direct burning,
space heating, cooking and water heating account for around
95% of the current biomass exploitation, while industrial
biomass use equals only 5%.
Carpathians and Sub-Carpathians
provide around 66% of the firewood and wood waste, whilst
the South Plain, West Plain and Moldova regions provide
approximately 58% of the agricultural waste. About 27% of
Romania’s land is covered by forests, whose exploitable
potential is estimated at 20,000 cm.
The key issue associated
with investment in industrial Biomass Power plants is the
Supply chain and transport issues associated with transferring
large volumes of fuel to the Urban locations where there
is a sufficient demand for both electrical & heat energy.
This issue is put into perspective when considering that
a 10MW Biomass Power Plant consumes 100 000 tons of wood
pellets per year.
Wind
Wind potential in Romania
is mainly concentrated in the Dobrogea, Moldova and Banat
regions. It is theoretically estimated that this region
will support around 14,000 MW installed capacity, generating
around 23 TWh per year. In reality, there are limitations
of Grid capacity in 2010 that limits the installed potential
to no more than 3 000 MW or 21% of capacity.
Wind resources in Romania
have been thoroughly analyzed over the last couple of years,
revealing high potential in the practical set-up of both
small independent units for rural areas and large off-shore
projects. According to an Erste Bank report, Dobrogea –
and most notably Constanta and Tulcea – establish Romania
as the second best location for developing wind farms in
Europe.
Overlaid on the key element
of Wind potential are the favorable demographic and topographical
aspects of ghe Dobrogea region. This area for onshore Wind
projects is the Coastal belt to the north of Constanta that
has low population and a topography that can be described
as a green desert – meaning that there are few buildings
or trees that reduce the wind energy levels within the wind
farms. (Image
of Dobrogea Green desert)
Hydro Electric Projects in Romania
The gross theoretical and
technically feasible hydropower potential is 70 000 GWh/year,
evaluated in 1986. The technically feasible hydro potential
is 36 000 GWh/year, corresponding to 11 500 MW of capacity.
The economic transition to a market economy means that it
is difficult to assess the economically feasible potential,
but it is approximately 28 000 to 32 000 GWh/year( 9100
to 10 300 MW). So far, about 42 per cent of the technically
feasible hydro potential has been developed.
The installed capacity of
all powerplants in operation is 18 653 MW, which is less
than in previous years as a result of some old thermal units
being disconnected. The installed capacity of hydro plants
is 5912 MW, which generate 16 700 GWh/year on average (25
per cent of production). In 1996, hydro plants generated
15 684 GWh.
A further 992 MW of hydro
capacity is under construction, and 921 MW is planned. The
projects under construction include some which were temporarily
abandoned after 1990 in review of the difficult economic
situation. It is hoped that the involvement of foreign investors
or multipurpose water users may provide an opportunity to
complete some of these schemes. The mean cost per kWh for
the hydro plants under construction is USˇé6 to 14/kWh (overall
lifetime costs). More accurate evaluations are still being
carried out by domestic of foreign consulting companies.
The planned projects were
designed before 1990, but insufficient funds are available
to begin construction. they include development o the Tisa
river through a joint Romanian Ukainian projects( 30 MW,
200 GWh/year).
There is significant uprating
potential at existing hydro plants: 370 MW through rehabilitation
of about 30 hydro units which have low reliability or generating
limitations as a result of deficiencies. At present this
capacity is considered permanently unavailable, although
it is included in the 5912 MW hydro capacity given above.
There is an additional potential of 206 MW through the uprating
o 14 hydro units, including the Iron Gates plant.
A 1000 MW pumped-storage
plant is planned, Tarnita Lapustesti, which will have four
250 MW units. Romaniia's first nuclear power unit (700 MW)
requires a large base load, and a pumped-storage plant was
planned to operation in conjunction with it before 1990.
However, the start of construction was delayed, again because
of lack of funds. Construction of the plant is now planned
with the help of an international loan, and Government guarantees.
Micro Hydro Electric Projects in Romania
There are 256 small, mini
or micro hydro plants in operation( up to 10 MW), with a
total capacity of 332 MW. A further 28 are under construction(70
MW), and 46 are planned (223 MW). Since July 2010, there
has been a significant increase in interest in small hydro
projects.
SHP plants construction growth
has followed a constant upward trend over the past 10 years.
The bulk of all SHP plants in Romania have been constructed
within the last 20 years.
The SHP investment opportunities
remain largely untapped, although it can be clearly stated
that the locations with the highest energy potential are
the first choice for investors.
Small hydro plants contribute
0.79% to the electricity mix in Romania. They are the second
largest contributor to RES-E production (some 3%) behind
large hydro. A considerable untapped potential exists for
SHP in Romania. 12% of the economically feasible potential
has been developed so far. The remaining economically feasible
potential is over 3 TWh/year.
The environmental requirements
are mot overly stringent with regard to SHP development
except for some issues arising from river life protection.
Permitted projects with a
sound tecnical analysis have been the subject of strong
investor interest since 2010.
Investment costs for new
plants are in the range of 1 500 to 3 000€/kW,.
In East-Central Europe, hydroelectricity
already represents a substantial source of power in some
countries such as Albania (96% of total electricity generation),
Croatia (59%) or Romania (37%). Most of the potential for
future hydropower expansion lies in Romania, Bulgaria and
Albania, as well as in the former Yugoslav republics. But
despite a very large potential for future expansion, as
yet, these countries have found it difficult to secure financing
for such projects.
