Energy Policy in Romania ____

							Energy Policy in Romania

        BOGOS Zsolt, Secretary of State
  Ministry of Economy and Commerce, Romania


         - Black Sea Energy Conference -
       3 – 5 April 2006, Bucharest, Romania
Challenges in the energy field

   the ongoing situation on the oil and gas markets
   the increasing import dependency and limited diversification
   high and volatile energy prices
   growing global energy demand
   security risks affecting producing and transit countries as well as
    transport routes
   the growing threats of climate change
   slow progress in energy efficiency and the use of renewable
   the need for increased transparency on energy markets and further
    integration and interconnection of national energy markets
   the energy market liberalization nearing completion (July 2007)
   the limited coordination between energy players while large
    investments are required in energy infrastructure.
EU common policy



   The Green Paper on a European
    Strategy for Sustainable, Competitive
    and Secure Energy - new common
    policy with a common voice on energy
    questions

   Key element: enforced co-operation
    Competition

    Transparency and clear regulatory framework are key words for the
     development of a real competitive sector

    Competitiveness requires a well-designed, stable and predictable
     regulatory framework, respectful of market mechanisms.

    Promotion of cost-effective options and economic analysis of
     different policy options, including their impact on energy prices

    Opening of the market

    Implementation of the most effective energy technologies

    Effective coordination between the national energy regulators and
     national competition authorities.
Energy efficiency

   The overriding aim is to reduce Romania’s high energy
    consumption in a co-ordinated way that will improve energy
    efficiency

   Specific targets to reduce heat emissions and intensity are
    included in the strategy for energy efficiency

   Special attention to the negative impact on the environment

   The main targets included in National Strategy for Energy
    Efficiency:
     – Reduction of energy intensity by 40% until the year 2015,
       compared to 2001;
     – The average electricity consumption will increase with 2,7 % by
       the year 2015 compared to 2001
     – The domestic energy resources will be limited to 24-25 million
       toe/year;
     – Increase of use of renewable energy resources.
Renewable

   Target: the consumption of electricity produced by
    renewable sources to reach 33 % of the total
    energy consumption, representing 11 % of the
    gross domestic energy consumption

   Benefits of renewable energy use:
    – the unique characteristics in combating climate change
      and contributing to reliability of energy supply through
      increased diversity;
    – create opportunities for business and jobs ;
    – it represents a local source that can help reduce reliance
      on import and improves the security of energy supply,
      meeting the environment protection criteria.
    Renewable

   Special incentive program should be enforced including a
    financial component

   Promotion of energy produced from renewable sources is
    being achieved by suppliers acquisition (proven by green
    certificates) of a mandatory quota of electricity produced
    from renewable sources, followed by their purchase by
    national customers. Renewable energy can be purchased
    from the green certificate market, operated by OPCOM

   After 2007, projects for the utilization of renewable
    resources will benefit from the support of the EU
    Structural Funds
Transport corridors
- Nabucco Project – and PEOP
   Top priorities: Securing the supply and
    diversifying the import sources
   Major projects that Romania intends to promote:

The Nabucco Project - access corridor for the
  Caspian reserves to the European markets;
  included in EU Green Paper
Pan European Oil Pipeline (Constanta – Trieste )–
  the most direct route for oil transit from the
  Black Sea Region to Europe
Transport corridors
- Nabucco Project -
MINISTRY OF ECONOMY AND COMMERCE

             BOGOS Zsolt

          Calea Victoriei 152
          Bucharest, district 1
              Romania

            tel.: +40 21 20.25.120
            fax: +40 21 20.25.119
         e-mail: bogos@minind.ro
     official website: www.minind.ro
Thank you for your attention!