Romania national report _GB_

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							                                                   EAST-GSR
            Solar Thermal applications in EASTern Europe with
                        Guaranteed Solar Results




                                             Work package 2

        "Analysis of the local situations in the Eastern
               European partner countries"
                       Tasks 2.1 and 2.2

                                                           Romania




The sole responsibility for the content of this publication lies with the authors. It does not necessarily reflect the opinion of the
European Communities. The European Commission is not responsible for any use that may be made of the information
contained therein.
EAST – GSR Project                           WP2 – Romanian market situation & GSR Potential



Table of Contents

1. Romania – Introduction                                                                       4
   1.1 Geography                                                                                5
   1.2 Climate                                                                                  7
   1.3 Economy                                                                                  8
   1.4 Legislative aspects                                                                     10
2. State of present solar hot water market and future potential in Romania (subtask 2.1)       12
   2.1 Energy context                                                                          12
      2.1.1 Structure of power sector                                                          12
        a) Nuclear Power Plants                                                                12
        b) Electricity grid                                                                    13
        c) Oil and Natural Gas                                                                 14
        d) Energy supply                                                                       15
        e) Hydropower                                                                          16
        f) Biomass Energy                                                                      17
        g) Wind Energy                                                                         19
      2.1.2 Energy statistics and trends                                                       21
        a) Energy production                                                                   21
        b) Energy demand/ consumption                                                          23
        Table 8 Electricity production balance in 2003                                         25
      2.1.3 National strategy                                                                  29
        a) National strategies and programmes                                                  29
        b) The National institutional framework                                                38
        c) Energy related funds and programmes                                                 40
   2.2. Solar hot water market                                                                 40
      2.2.1 Background                                                                         40
      2.2.2 Solar market key figures                                                           41
      2.2.3 Solar radiation figures and productivity of solar collector                        42
      2.2.4. Local bodies, prescribers, certification                                          44
      2.2.5. Products                                                                          46
      2.2.6. Barriers to overcome for implementation of solar thermal installations            47
   2.3. Sectorial Approach                                                                     48
      2.3.1. Hotel sector                                                                      48
        a) Relevant regulations for solar market in the hotel sector :                         52
      2.3.2. Housing sector                                                                    54
        a) National housing stock data                                                         54
        b) Technical information                                                               55
        c) Relevant regulations for the solar market in building sector                        58
        d) The district heating system                                                         58
      2.3.3 Other sectors to be considered                                                     61
      2.3.4 Domestic hot water needs evolution by sector                                       61
3. Identification of economic and financial requirements for a wide dissemination of the GSR
        concept                                                                                62
   3.1. The institutions                                                                       62
      3.1.1 Energy tariffs                                                                     62
      3.1.2 Main agencies                                                                      63
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           SC OVM-ICCPET SA
EAST – GSR Project                          WP2 – Romanian market situation & GSR Potential



  3.2 Standards and regulations                                                               64
  3.3 Economic analysis in housing and hotel sectors                                          65
  3.4 Taxes and customs duty                                                                  65
  3.5 Energy prices                                                                           66
  3.6 Incentives and funding                                                                  67
  3.7 Improvement margins                                                                     67
4. Conclusion – Requirement for a successful implementation of the GSR contract               68

Annex 1.1                                                                                  69
Annex 1.2                                                                                  70
Annex 1.3                                                                                  71
Annex 1.4                                                                                  71
Annex 1.5                                                                                  72
Annex 1.6                                                                                  73
Annex 1.7                                                                                  74
Annex 2.1                                                                                  75
Annex 2.2                                                                                  75
Annex 2.3                                                                                  76
Annex 2.4                                                                                  76
Annex 2.5                                                                                  77
Annex 2.6                                                                                  77
Annex 2.7                                                                                  78
Annex 2.8                                                                                  78
Annex 2.9                                                                                  79
Annex 2.10                                                                                 80
Annex 2.11                                                                                 81
Annex 2.12                                                                                 82
Annex 2.13                                                                                 83
Annex 3.1                                                                                  84
Annex 3.2                                                                                  86
Annex 3.3                                                                                  89
Annex 3.4                                                                                  90
Annex 4.1                                                                                  91
Annex 4.2                                                                                  93
Annex 4.3                                                                                  94
Annex 5.1                                                                                  95
Annex 5.2                                                                                  96
Annex 5.3                                                                                  97
Annex 5.4                                                                                  98
Annex 6.1                                                                                 100




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             SC OVM-ICCPET SA
EAST – GSR Project                            WP2 – Romanian market situation & GSR Potential




        1. Romania – Introduction
         Romania is a country of Southeastern Europe. Romania borders Hungary and Serbia to the
west, Ukraine and Moldova to the northeast, and Bulgaria to the south. Romania has a stretch of sea
coast along the Black Sea, and the eastern and southern Carpathian Mountains run through its center.
Since Romania has been part of the European Union on the 1st January 2007, it has had the seventh
largest population within the Union with an estimated 22,303,552 inhabitants and the ninth largest
territory with 238,391 km2.


                                            ROMANIA




                            Fig 1. Romania and neighbouring countries

Statistics in brief:

Area: total: 238,391 km sq km
Land boundaries: total length 3,153 kilometers; border countries: Ukraine 169 km, Moldavia 450 km,
Hungary 442 km, Serbia and Montenegro 476 km, Bulgaria 608 km, Black Sea

Coastline: 245 km
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             SC OVM-ICCPET SA
EAST – GSR Project                             WP2 – Romanian market situation & GSR Potential



Climate: transitional between temperate and continental; cold, snowy winters; hot, dry summers
Terrain: distributed roughly equally between mountainous, hilly and lowland territories
Elevation extremes: lowest point: Black Sea 0 m highest point: Moldoveanu 2,544 m
Capital: Bucharest (2,2 million inhabitants, 2005)
Currency: Romanian LEU (RON), convertible
3,5 RON = 1 EUR (variable)


              1.1 Geography

                           Table 1. Geographical Position of Romania
                     GEOGRAPHICAL POSITION OF ROMANIA
               Extreme point           County       Longitude East           Latitude North
  North      Hodorodistea village      Botosani         26º42'05"              48º15'06"
  South        Zimnicea town          Teleorman         25º23'32"              43º37'07"
   Eat          Sulina town             Tulcea          29º41'24"              45º09'36"
  West          Beba Veche              Timis           20º15'44"              46º07'27"

Centered around the 45th parallel of the northern hemisphere and described either as a country of the
Balkans, or as a southeastern European country, Romania offers a lot of geographical contrasts. The
Carpathian Mountains, covered with dense forests, enclose the Transylvanian Plateau in a wide arc, a
distinctive feature, evident at first glance on any map of Romania. On the outside of this arc, the
Moldavian Plateau stretches to the East and the Wallachian Plain to the South.

The Carpathians, divided into Eastern, Southern and Western Carpathians, average 1200 meters in
height. Their composition offers a rich geological diversity of sedimentary, metamorphic and volcanic
rocks. The highest peaks are Moldoveanu and Negoiu (more than 2500 meters) in the Fagaras
Mountains, of the Southern Carpathians. The mountains are crossed by many rivers: the Olt, the Mures,
the Prahova, the Bicaz, which create beautiful valleys and canyons, such as Turnu Rosu in the Olt
valley and spectacular gorges like the Bicaz Gorge, in the Eastern Carpathians. There are also
marvelous caves, the most famous being “Pestera Ursilor”. The mountains hold granite and basalt
quarries, as well as lead, bauxite, iron ore, copper ore, gold and uranium mines.
Enclosed by the massive walls of the Carpathians, there are depressions, which played an important
role in Romanian history. Romanians named them “countries” (the Oas Country, the Moti Country, the
Olt Country, the Maramures Country) even though they have never had any political, social or
administrative status.
The Subcarpathians form the transition between the Carpathians and the plains. The high hills offer
good conditions for orchards, vineyards and hay-making. The soil is rich in coal, salt and oil.
Some of the Romanian plateaus, such as the Transylvanian Plateau, are in the center of the Carpathian
arc, others, such as the Getic Plateau, the Moldavian Plateau, the Dobrudja Plateau are on the outside.
They are generally covered with beech and oak forests, and vineyards on the gentler slopes. It is on
these plateaus, where the famous Cotnari, Odobesti, Tarnave and Murfatlar vineyards are located.
The Romanian or Wallachian Plain is surrounded by the Carpathians to the West and North, by the
Danube River to the South and by the Dobrudja Plateau and the Prut River to the East. It is the “bread-
basket” of the country, formed mostly of layers of loess and alluvial soil. On the eastern part of this
plain there are some sand dunes, salt lakes and the Baragan steppe, some of which was converted into
arable land. The Western or Banat Plain in the West is smaller than Wallachian Plain.
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           SC OVM-ICCPET SA
EAST – GSR Project                              WP2 – Romanian market situation & GSR Potential



Covering an area of 2500 square kilometers the Danube Delta in the East of the country is a unique
ecosystem in Europe. It is an extraordinary natural reservation consisting of marshes, sand banks and
floating reed islands, crossed by hundreds of water channels.
Almost all major rivers of Romania flow into the Danube which is the largest river of the country and
one of the largest in Europe. It forms the natural border to Serbia, Bulgaria and the Ukraine. It is an
important water route for domestic and international ships. A powerful hydroelectric plant was built in
1972 at the Iron Gates straits, where the Danube dug a narrow canyon across the Carpathians, to make
its way toward the Black sea.
Other major rivers are the Olt, the Somes, the Mures, the Jiu, the Prut and the Siret, some of them being
used for local transportation or logging. Most of the hydroelectric potential of the rivers is being
utilized. Mineral springs with therapeutic properties have been long in use at Baile Herculane, Baile
Felix, Tusnad, Vatra Dornei, Olanesti, Calimanesti, etc. Many health resorts were built in these areas.
Romania’s considerable diversity of fauna and flora derives from the complexity of the relief. One can
distinguish the following three vegetation zones: alpine, forests and steppe.
The alpine zone begins at about 1600 m and consists of mountains pines, small bushes and shrubs
scattered on mountain meadows. The fauna is represented here by the bearded vulture and the chamois.
Romania’s forests cover more than 25% of the land. The coniferous forest is intermingled with birches
and maples at lower altitude. The Transylvanian Plateau is covered with oak and beech trees. Large oak
forests can also be found in Dobrudja, in the Western Plain, across the northern part of the Wallachian
Plain and in southern Subcarpathians. Large numbers of deer, wolves, bears, lynxes, squirrels, hawks
and owls roam these forests.

Administratively Romania is divided into 42 counties (judete). Bucharest, the capital, is the most
important political, economical and cultural center of the country. It is located on the Dambovita River
in the south-eastern part of the Wallachian Plain, and is surrounded by many natural lakes and forest.
Other major cities are: Cluj, Timisoara, Jassy (Iasi), Constanta, Brasov, Sibiu, Arad, Oradea. There are
several port cities such as Sulina, Galati, Giurgiu, and Orsova on the Danube, and Constanta on the
Black Sea.
                                      Table 2. Land coverage.
                             Land area covered by                               sq.km
                                    Forests                        28%         66 700
                     Shrub lands, savannas, and Grasslands          1%          2 400
                      Cropland and crop/natural vegetation
                                                                   69%         164 500
                                    mosaic
                            Urban and built-up areas                1%          2 400
                           Wetlands and water bodies                1%          2 400

Population structure:

The population structure is composed as follows: 48,9% male, 51,1% female with a density of 94.8
inhabitants / sq km. Romanian-speaking people represent about 86% of the population. As ethnic
minorities, Hungarian and Germans live mainly in Banat and Transylvania, Serbians in Banat, and
Jews throughout Romania. The Gypsies form one of the largest ethnic groups. Some of them live a
nomadic life, others are settled near large cities like Bucharest and Constanta. A limited number of
Russians, Bulgarians and Turks live in Dobrudja, Ukrainians in Maramures and northern Moldavia.




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            SC OVM-ICCPET SA
EAST – GSR Project                              WP2 – Romanian market situation & GSR Potential



               1.2 Climate

Temperate continental with clearly marked four seasons.

Romania's terrain is distributed roughly equally between mountainous, hilly and lowland territories.
The Carpathian Mountains dominate the centre of Romania, with fourteen of its peaks reaching above
the altitude of 2,000 metres. The highest mountain in Romania is Moldoveanu Peak (2544 m). In south-
central Romania, the Carpathians sweeten into hills, towards the Bărăgan Plains.

There is certain symmetry in the physical structure of Romania. The country forms a complex
geographic unit centered on the Transylvanian Basin, around which the peaks of the Carpathian
Mountains and their associated sub ranges and structural platforms form a series of crescents. Beyond
this zone, the extensive plains of the south and east of the country, their potential increased by the
Danube and its tributaries, form a fertile outer crescent extending to the frontiers. There is great
diversity in the topography, geology, climate, hydrology, flora, and fauna.

Because of its position on the southeastern portion of the European continent, Romania has a climate
that is transitional between temperate and continental. The hottest regions are located in the southern
part. Climatic conditions are somewhat modified by the country's varied relief. The Carpathians serve
as a barrier to Atlantic air masses, restricting their oceanic influences to the west and center of the
country. The mountains also block the continental influences of the vast plain to the north in the Soviet
Union, which bring frosty winters and less rain to the south and southeast. In the extreme southeast,
Mediterranean influences offer a milder, maritime climate. The average annual temperature is 11°C in
the south and 8°C in the north. In Bucharest, the temperature ranges from -15°C in January to 35°C in
July, with average temperatures of -3°C in January and 27°C in July. Rainfall, although adequate
throughout the country, decreases from west to east and from mountains to plains. Some mountainous
areas receive more than 1,010 millimeters of precipitation each year. Annual precipitation averages
about 635 millimeters in central Transylvania, 521 millimeters at Iasi in Moldavia, and only 381
millimeters at Constanta on the Black Sea.

Mountain climate: The mountainous climatic region covers the mountain parts at altitudes above 900-
1,000 m. Temperatures decrease with height, whilst snowfalls increase. The snow cover stays put for
five to six months and is over 1.5 m thick. The average January temperatures on the high mountain
peaks reach up to -20°C and are around -5°C in the valleys and ski resorts. Average summer
temperatures vary between 12°C and 20°C.


The coastal climate is moderated by the Black Sea, but strong winds and violent local storms are
frequent during the winter. Winters along the Danube River are bitterly cold.


The average winter temperature drops at -3°C, and average summer temperature is between 22°C and
24°C. A minimum ever registered was -38.5°C in Brasov County and the maximum was +44.5°C in
Baragan region.

The annual average thickness of snow is 677 mm, slightly higher in mountainous area (above 1000 m),
and lower at seashore.

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            SC OVM-ICCPET SA
EAST – GSR Project                               WP2 – Romanian market situation & GSR Potential




                        Table 3 : Average temperatures in Romania [°C]
                                            Summer        Winter       Average
             Black Sea Coast                  20.0           2.4        11.2
             Bucharest                        21.8           0.6        11.2
             Cluj                             18.2          -2.6         7.8
             Predeal                          14.5          -4.5         5.0
             Danube Delta                     20.8           2.3        11.5
             Timisoara                        21.2           0.0        10.6


               1.3 Economy

After Romania's communist regime was overthrown in late 1989, the country experienced a decade of
economic instability and decline led in part by an obsolete industrial base as well as a lack of structural
reform. Since 2000, however, the economy has been transformed into one of relative macroeconomic
stability, high growth rate, low unemployment and increasing foreign investment. Currently, it is
among the most developed nations in south-eastern Europe. Economic growth since 2000 has averaged
4-5%, rising to 8.3% in 2004. This has characterized Romania as a boom economy and one of the
fastest growing in Europe. In October of 2004 Romania was granted the much desired 'functional
market economy' status by EU officials.

In the past, the International Monetary Fund (IMF) has criticized the Romanian government's fiscal,
wage, and monetary policies. Meanwhile, macroeconomic gains have only recently started to spur
creation of a middle class and address Romania's widespread poverty, while corruption and red tape
continue to handicap the business environment.

After a decade of economic decline specific to the transition period towards the market economy, in
2000 the economy started a positive evolution characterized by an important increase of Gross
Domestic Product (GDP), in parallel with a decrease of inflation and unemployment rate (table 1).




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            SC OVM-ICCPET SA
EAST – GSR Project                                    WP2 – Romanian market situation & GSR Potential




                                 Table 4 General macroeconomic data
                                        GDP       Industrial
                                                                Inflation            Unemployment
         Year          Population      annual     production
                                                                  rate                   rate
                                      increase     increase
                                          %           %             %                        %
         1999          22,458,022        -1.2        -2.2         45.8                      11.8
         2000          22,435,205       +2.1         +7.1         45.7                      10.5
         2001          22,408,393       +5.7         +8.3         34.5                       8.8
         2002          21,794,793       +5.0         +4.3         22.5                       8.4
         2003          21,733,556       +5.2         +3.1         15.3                       7.4
         2004          21,673,328       +8.4         +5.3         11.9                       6.3
         2005          21,623,849       +4.1         +2.0          8.6                       5.9
         2006          21,550,000       +7.9         +7.4         4.87                       5.4
     (estimation)
         2007                             +6.2                            4.7                5.6
     (estimation)
Source: statistical data - National Institute of Statistics, National Commission of Statistics

The GDP/capita, in figure 2, still has low values in comparison with the average in EU. In 2004 this
value was 8.1 times lower than the average in EU 25 if the comparison is made on the exchange rate
RON/EUR or 3.1 times lower if we use the Purchasing Power Parity (PPP). In 2006 it was registered
also a strong valuation (8%) of the Romanian currency reported to the Euro. The annual average
exchange rate for 2006 was 1 Euro= 3.5245 RON

Taking into account the Romania accession to EU, it is expected that after 2010 the Romania
development will aproach the level of the countries which accessed the EU in 2004.

     [bil EURO]
  180                                                                            [tho EURO/capita.]
  170                                                                        8
  160
  150                                                                        7
  140
  130                                                                        6
  120
  110                                                                                  PIB
                                                                             5
  100
                                                                                       PIB ppp
   90
                                                                             4         PIB /capita
   80
   70                                                                                  PIB ppp/capita
   60                                                                        3
   50
   40                                                                        2
   30
   20                                                                        1
   10
    0                                                                        0
           1999      2000      2001       2002      2003       2004   2005
 Source: statistical data of EUROSTAT (epp.eurostat.ec.europa.eu)

                                      Fig 2: The evolution of GDP
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            SC OVM-ICCPET SA
EAST – GSR Project                               WP2 – Romanian market situation & GSR Potential



Domestic Energy Production

Much of the equipment for the local power industry is manufactured in Romania. Indeed, Romania has
the capability for designing and erecting complete plants. Equipment and turnkey projects have been
exported to countries such as: Turkey, Russia, Ukraine, the Arab countries, China, and other countries
with which Romania has relations.

For the hydraulic schemes related to hydropower plants, more than 80,000 tons of equipment, mainly
consisting of: plane gates, immersed plane valves, movable raising bridges and actuators, have been
manufactured. The best performances for such hydro mechanical equipment have been carried out for
the harnessing of the Iron Gates II hydropower plant and for the Danube-Black sea shipping canal.

Potential direct exports of power equipment to Romania will have to be viewed with the impact of high
freight costs and competition with local industry which can still offer comparatively lower prices for
equipment that is technically competitive.

Another category of equipment manufactured locally is not up to international standards. These items
will have to be imported anyway. Competition could come only from other western companies. The list
of this equipment and materials is as follows:

Nuclear equipment; power plant control systems and instrumentation; installations for solid, liquid and
gas fuel handling or parts of such installations (such as special pumps, special compressors and high
pressure fittings); high and medium voltage breakers; special high voltage transformers and insulated
cells as well as parts thereof; conductors and electric insulators; ionic masses; special high alloy steel
plates and bars; fero-alloys and other special materials.

Most of the equipment and technologies now in place in the Romanian factories are European ones,
purchased in the sixties and the seventies. The Romanian import market for equipment related to the
energy sector is dominated by German, French and Italian companies.

The electricity sector in Romania is under a process of transition from a monopolist structure to a
competitive energy market in order to ensure safety in electricity supply, quality of electricity supply,
efficient use of fuel, direct market relations between producers, energy/services suppliers and
customers.

               1.4 Legislative aspects

The "National Energy Strategy" was endorsed in 1998 and comprises several forecasts like:

   •   the primary energy consumption in Romania will increase up to about 59-69 million toe in
       2020,
   •   the industry will represent only 50% of the total energy consumption, while the tertiary sector
       will double in 2020,
   •   the internal oil and gas production will continuously decline to 6.7 million tons and 18.3 billion
       cum per year respectively. The fuel imports will increase from 19 million toe in 1995 to 43
       million tons in 2020,
   •   the domestic coal production will stabilize to about 30 million tons per year (20 million tons in
       1999),
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            SC OVM-ICCPET SA
EAST – GSR Project                              WP2 – Romanian market situation & GSR Potential



   •   the heat demand will increase by 1-1.6% per year , and
   •   the power consumption will increase by 2-2.5% per year.

The primary legislation referring to the electricity sector comprises: The Mining Law, the Petroleum
Law, the Water Law as well as the following:

The Energy Charter Treaty, was ratified by the Parliament in 1997.

The Emergency Government Ordinance (GEO) 29/28 regarding the setting up, the organisation and the
functioning of the National Electricity and Heat Regulatory Authority (ANRE). ANRE is set up in
order to create and implement an unified regulatory system to ensure an efficient, transparent and stable
functioning of the electricity and heat while protecting the interests of consumers and investors.

GEO 63/98 on electricity and heat, promoting a competitive market in the sector in order to meet the
population's need for energy and fuel supply, in compliance with the international engagements,
Romania has assumed through the Energy Chart ratified through the Law 14/1997, as well as the
harmonization of domestic regulations with the provisions of the EU directives in the field.

The Law of Concession 219/98.

The Law of Competition, 21/1996, was adopted to ensure competition on the Romanian market. The
Competition office is set up and is subordinated to the Government.

The main objectives of the governmental energy policy comprise:

   •   ensuring primary energy supply by diversification of sources and creation of the pipeline
       infrastructure for transiting the Caspian Oil to Central & Western Europe
   •   elimination of subsidies for unprofitable mining and closing of inefficient mines
   •   modernization of power and heat generation, transport and distribution installations
   •   stimulation of private company participation on the energy market
   •   elimination of cross-subsidies for heat and electricity
   •   preparation for EU accession, by adoption of the "acquis communitaire"
   •   participation with East-West energy exchanges (interconnection of the Romanian power grids
       to the UCPTE - Union pour la Coordination de la Production et du Transport de l’électricité).

In the following months, the Government is planning the restructuring/privatization of the following
utilities:

ROMGAZ
the Romanian public utility for gas exploitation, processing and distribution. The restructuring plan has
foreseen the liquidation of the two existing natural gas distribution channels of Romgaz and the
establishment of two trade companies instead. The second stage of the plan foresees a spin-off process
from Romgaz for some of the component distribution companies. Subsequently, these companies will
be up for privatization. The stage is scheduled to start by the beginning of September. The privatization
will be done through a share issue, and the company's employees will have priority. However, the state
intends to keep a certain control of the privatized companies, by imposing the so-called "golden share".

PETROM
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            SC OVM-ICCPET SA
EAST – GSR Project                                WP2 – Romanian market situation & GSR Potential



the National Oil Company. As a next stage, the planned process foresees to create a capital boost that
would put a stake of roughly 35 percent into the hands of a strategic investor



       2. State of present solar hot water market and future potential in Romania (subtask 2.1)

               2.1 Energy context

       During recent years, several important steps have been taken in the Romanian energy sector in
order to change the structure by deregulating the sector towards more market principles and free
competition, as well as privatizing the energy enterprises. The EU accession requires for Romania to
work towards making the energy sector compliant with the EU directives on Energy [MEWM, 2005b].
The energy sector in Romania has been hampered by the specific problems faced by many countries
with economies in transition:

1. High energy intensity combined with low energy efficiency
2. High marginal cost of energy production
3. Low level of legislation, institutional and regulatory infrastructure leading to high transaction costs
4. Consistent energy price increases above the rate of inflation
5. High level of non-payment, especially from industrial users, but also from individual consumers
because of the high share of energy costs in total household expenditure.
6. Poor record on energy conservation and compliance with environmental requirements
7. Stagnation of the economy, high inflation rate and disappointing level of foreign investments


                       2.1.1 Structure of power sector

The total Installed generation capacity is 22,589 MW.

a) Nuclear Power Plants

        Romania operates, at the Cernavoda Nuclear Power Plant, a Canadian-designed CANDU 6 type
reactor with a nominal capacity of 700 MWe. This unit has been licensed following the Canadian
licensing requirements for similar reactors in Canada. Cernavoda Unit 1 provides 10 % of the country's
electricity. Unit 2 of Cernavoda is being completed and is expected to be operational by 2007. As
regards nuclear safety, Romania has continued to develop the legislative and regulatory framework.
However, no progress has been achieved in dealing with spent fuel and nuclear waste. Legislation has
been harmonized with the adoption of orders for approving EURATOM safeguards, on radiological
safety norms in September 2001, and on international transit of nuclear materials through Romanian
space in February 2002.

       As part of the Strategic Plan for Safety Analysis, a technical agreement was concluded between
the National Company Nuclearelectrica and a Korean nuclear power company in order to assist the
Romanian operator to develop its capability to perform accident analyses at Cernavoda Nuclear Power
Plant.


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            SC OVM-ICCPET SA
EAST – GSR Project                               WP2 – Romanian market situation & GSR Potential



b) Electricity grid

        Romania has an extensive interconnected power transmission and distribution network with an
overall length of about 600,000 km, and a total transformer capacity of about 172,000 MVA. The
national grid operates on 750 kV, 400 kV, and 220 kV for transmission and 20 kV, 10 kV, 6 kV, 1 kV
and 0.4 kV for distribution. See the map in Annex A.2.1.1.1

       As a limited member of the Interconnected Power System-Central Dispatching Organization,
Romania has strong interconnections with Ukraine and Bulgaria, substantial interconnections with the
former Yugoslavia, and weaker links to the Republic of Moldavia and Hungary. The Romanian grid
operator, Transelectrica, is currently cooperating with the electric power systems of Greece and the
former Yugoslavia (both UCPTE members) and is working to become more fully integrated into the
UCPTE system. The transmission network is interconnected with those of neighboring countries - by
750 kV (4,000 MWe capacity), 400 kV (2,500 MWe capacity), and two 110 kV tie-lines with Ukraine;
a 400 kV line with Hungary (currently operating at 220 kV, with a planned capacity of 1,200 MWe);
750 kV (4,000 MWe capacity), 400 kV (2,500 MWe capacity), and 220 kV (260 MWe capacity) lines
to Bulgaria; and one 400 kV (1,200 MWe capacity) and two 110 kV lines with Yugoslavia; and two
110 kV lines with Moldavia. In 2001, Transelectrica received a $51.5 million loan from the European
Bank for Reconstruction and Development (EBRD) to upgrade the Romanian transmission system and
make it more compatible with the western European power network.

Romania’s electricity distribution companies are presently all state-owned, but this is likely to change
in the future.




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            SC OVM-ICCPET SA
EAST – GSR Project                             WP2 – Romanian market situation & GSR Potential




                                       Fig.3 Power Grid Map


c) Oil and Natural Gas

Oil

Romania’s crude oil reserves are estimated at 200 Mt. Oil production has been decreasing since 1997.
(2001: 6 Mt) Oil imports have declined from 22 Mt in 1989 to 7 Mt today.The refining capacity has
been reduced from 34 Mt in 1996 to 25 Mt today. With the opening of 15 oil and gas blocks for
exploration in 1996, and the influx of western technology, Romanian reserves and production are
expected to rise slightly in the coming years.

The share of oil in primary energy consumption is 32%.




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           SC OVM-ICCPET SA
EAST – GSR Project                             WP2 – Romanian market situation & GSR Potential



Gas

Romania’s gas reserves are estimated at 335 Gm3. Gas imports have been decreasing rapidly since
1984. In 2001 10Gm3 were imported. The share of imports from Russia, via a pipeline through
Ukraine, is increasing and now accounts for 20% of the country's consumption.

The share of gas in the country's primary energy consumption has dropped from 45% in 1990 to 35%
in 2004.

d) Energy supply

       Romania has significant fossil fuel and hydroelectric resources: It has crude oil reserves of
about 1.4 billion barrels, proven natural gas reserves estimated at 335 Gm3, estimated coal reserves of
3.98 billion short tons. Most of these reserves are lignite and sub-bituminous coal. The total
hydroelectric power potential is about 40 TWh per year of which 12 TWh per year has already been
developed. Domestic production supplies 70% of the primary energy demand.




                                        Fig. 4. Energy share

In the 2002 regular report on Romania’s progress towards accession to the EU, the EU commission
comes to the conclusion that Romania does not devote the necessary resources to improving energy
efficiency and to promoting renewal energy. The present efficiency of production means and networks
is very poor, mainly due to a lack of investment. The Romanian Agency for Energy Conservation is in
charge of promoting energy efficiency but has very limited financial and human resources - which is a
demonstration of the low priority Romania gives to energy efficiency. This is particularly worrying,
since the energy intensity of the economy is very high (estimated at around 8 times the EC average.
Incentives for Romania’s Energies and Funding The Law on the Efficient Use of Energy entered into
force in 2002. In Annex 2.13 is given the map of Electrical Poer grid.


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EAST – GSR Project                              WP2 – Romanian market situation & GSR Potential




e) Hydropower

Current Status

The hydro-electric potential is estimated at 40 TWh, 12 TWh/a are developed: The 362 Hydroelectric
power plants with an overall installed capacity of 6120 MW represent 27.9% of the overall installed
capacity of the Romanian power system. The opportunities for hydro development in Romania are very
good. Around 5000 locations in Romania are favorable for small HPPs. However, there are no special
incentives for the implementation of hydro projects.

The installed capacity of hydropower is 6,120 MW, representing nearly 30 percent of Romania’s total
installed electricity generating capacity. The country’s hydropower potential is extremely large, with an
estimated additional potential of over 9 GW. Lack of funding is the greatest barrier to increasing
current capacity.
The total theoretical hydroelectric potential of Romania, given optimum technological conditions-has
been calculated at some 70 billion kilowatt-hours in an average year, but for technical and economic
reasons only a fraction of this potential has been developed. Geographically, the hydroelectric reserves
of Romania are concentrated along the Danube and in the valleys of rivers emerging from the mountain
core of the country. Other hydrographic resources include the more than 2,500 lakes, ranging from the
glacial lakes of the mountains to those of the plains and the marshes of the Danube delta region. The
main effort since the 1940s, however, has been on the Arges, Bistrita, Lotru, Olt, Mare, Sebes, and
Somes rivers as well as on the Danube at the Iron Gate. The Romanian government has encouraged
foreign investment in hydropower through Hidroelectrica, the state-owned hydropower producer. In
Romania there are 362 Hydroelectric Power Plants (HPP) with an overall installed capacity of 6,120
MW, which means 27.9 percent of the overall installed capacity of the Romanian power system.
Out of these 362 hydroelectric power plants there are:
„hƒn 317 HPPs with capacities between 0 and 30 MW, totalizing 1069 MW installed
„hƒn 32 HPPs with capacities between 30 and 100 MW, totalizing 1529 MW installed
„hƒn 13 HPPs with capacities over 100MW, totalizing 3552 MW installed
„hƒn In 2000, the total energy produced by the hydro sector was 14778 GWh, representing
28.5 percent of the total energy produced in Romania.
In Romania, the most important water basins are: Olt, Lotru, Bistrita, Somes, Dragan, Arges,
Dambovita, Raul Targului, Sebes, Raul Mare, Cerna, Bistra, Buzau, Motru, and Danube.




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EAST – GSR Project                              WP2 – Romanian market situation & GSR Potential




f) Biomass Energy

Current Status

Romania is covered by 40% of agricultural land and 27% of forest. The share of biomass in the total
energy of the country was 10.94% in 1998. Currently, biomass is used only for heating purposes, direct
burning for cooking and hot water preparation consuming the largest share. District heating systems are
the most immediate and low-cost application. About 95% of the biomass currently used is firewood and
agricultural waste, the rest is wood waste from industrial processes: The average installed capacity in
sawmills is 3.3 MWth. Biogas has been used in the past to a larger amount. Today, the number of large
pig and cattle units is decreasing. Two demonstrative Biogas-projects were realized in 1999. Potential
biomass is regionally distributed over Romania. Fuel wood and wood waste is mostly found in the
Carpathians and Subcarpathians, while agricultural waste is available in the South Plain and Moldavia,
biogas in the South and Western plains.
The potential market for biomass applications is very large but specific incentives will be needed this
potential to be realized. Direct burning in the kilns, stoves for space heating, cooking and hot water
preparation is about 95 percent of the biomass use. These furnaces have a nominal capacity between
0.8 kW to 4 kW and are hand stocked and with an average efficiency between 15 to 50 percent.
Burning in thermal plants to generate industrial steam and hot water in sawmills and in other
industries equals about 5 percent of biomass usage. In sawmills, the average installed capacity is 3.3
MW and in other industries 4.7 MW.
The main Romanian legislation concerning environmental aspects and biomass utilization: Law no.
137/1995 on environment protection, Law no. 107/1996 on water protection, Forestry Code approved
by Law no. 26/1996 Ordinance Ministry of Waters, Forests and Environment Protection. no. 462/1993
on evaluation of pollutant emission, Ordinance Ministry of Waters, Forests and Environment
Protection. no. 125/1996 on regulation procedure for economical and social activities having
environmental impact.

Large amounts of small-sized wood is obtained in wood industry, but utilization of this wood for
energy purposes is insufficient due to difficulties related to gathering, processing and transportation.
Studies show that these wood wastes are economically viable resources.




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EAST – GSR Project                         WP2 – Romanian market situation & GSR Potential




                            Table. 5 Romania Biomass Resource Data
    Biomass resource type                  Total production          Production density
    Percent of total land area covered by
     Forests                                                    28%
     Shrublands, savanna, and grasslands                         1%
     Cropland and crop/natural vegetation
     mosaic                                                     69%
     Urban and built-up areas                                    1%
     Sparse or barren vegetation; snow
     and ice                                                     0%
     Wetlands and water bodies                                   1%
    Primary crop production, tonne           (avg. 1999-2001, tonne)      (tonne /1000 Ha)
     Total primary crops (rank among                 53,291,420 (6)             2,314 (10)
     COO)
     Top 10 primary crops

       Alfalfa for Forage & Silage                        7,846,000                    341
       Maize                                              7,777,600                    338
       Leguminous (misc), Forage &                        6,316,667                    274
       Silage
       Wheat                                              5,364,014                     233
       Grasses (misc), Forage & Silage                    4,678,167                     203
       Potatoes                                           3,742,300                     162
       Mixed Grasses, Legumes                             2,949,367                     128
       Clover for Forage & Silage                         2,704,367                     117
       Vegetables and Roots, Fodder                       1,244,867                      54
       Grapes                                             1,170,786                      51
    Animal units, number                                   (number)    (number / 1000 Ha)
     Cattle                                               3,097,000                     134
     Poultry                                            69,312,000                   3,009
     Pigs                                                 6,521,000                     283
       Equivalent animal units                            6,398,520                     278
    Annual roundwood production                   (1996-98, 000 m3)               (m3 / Ha)
     Total                                                    12476                  541.6
     Fuel                                                      3174                  137.8
     Industrial                                                9302                  403.8
     Wood-based panels                                          390                    16.9
                                               (1996-98, 000 metric      (metric tons / Ha)
                                                               tons)
     Paper and paperboard                                       310                   13.5
     Recovered paper                                             92                    4.0




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EAST – GSR Project                               WP2 – Romanian market situation & GSR Potential




There are good opportunities for biomass development in Romania.

Biomass applications for biomass can be grouped into the following main market segments:

   ·      substitution of part of the fossil fuels in existing district heating schemes (wood chips)

   ·      enhanced uses of biomass as industrial fuels (wood chips and logs as industrial fuel for
       steam or hot water boilers) instead of oil

   ·      improved uses of biomass for new district heating schemes for small towns and villages near
       the resources, in the countryside, where the population has no access to central co-generation or
       gas supply

   ·      uses of straw and other agricultural by-products in appropriate biomass boilers for heat
       supply of farms and small villages (in the medium term)

   ·      The top priority is the use of biomass for thermal applications, substituting oil. Assuming an
       available biomass energy supply, district heating systems represent the most immediate and
       low-cost biomass application in Romania especially CHP plants, industrial co-generation and
       co-firing.

   ·      The most promising regions for the agricultural waste utilization could be the South Plain,
       especially the counties Braila, Ialomita, Calarasi, Giurgiu, Teleorman and the West Plain,
       especially the counties of Arad and Timisoara. In these counties the agricultural production is
       high, there are no own sources of fuel for heating and cooking.

   ·      In the Carpathians Mountains and Subcarpathians area where firewood and wood waste are
       available, there are opportunities to develop district-heating plants. The size of boilers for the
       district heating in the identified projects range from about 1 MWth to 6 MWth.(1996 RES
       Strategy)

·       The expected development of the wood industries will encourage the rehabilitation of the
existing boilers from the existing auto producer’s thermal plants which account about 550 steam
boilers, or the construction of the new ones. The existing auto producer’s thermal plants account about
550 steam boilers.

g) Wind Energy

Current Status

Romania is considered to have the highest wind energy potential in the region.
There is only one demonstrating wind energy project in Romania (4 kW). Two demonstration projects
with over 100 kW each, in the Semenic Mountains and at Black Sea offshore, are no longer in
operation due to lack of funds.
There is no current installed capacity, but the government has a target of 200 MW by 2010. A country
wide wind-atlas, prepared by the Energy Research and Modernizing Institute (ICEMENERG SA), is
based on WAsP software and meteorological data. The Romanian wind atlas indicates wind speeds of
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EAST – GSR Project                               WP2 – Romanian market situation & GSR Potential



4.5 to 11.5 m/s at 50 m height in various areas of the country, notably off-shore. The Romanian Wind
Energy Association is active in the country, and additionally ICEMENERG is the leading wind energy
institute of the country with state of the art capabilities. One current project of 24.5 MW, consisting of
22 each 750 kW and 4 each 2 MW turbines, was identified. The project at Constanta at the Black Sea
coast is being developed by ABB and is in the stage of "investment approval". The average wind speed
at hub-height is 6.2 m/s. Based on the available wind atlas Romania has a very good technical potential
for wind energy development.
The wind atlas developed by ICEMENERG identifies huge areas with wind speeds over 11 m/s
depending on topography. Highest measured wind speed is at Calimani at an altitude of 2022 m, with
annual average of 10.3 m/s at 10 m above ground.

There are two main fields of applications:

   •   Grid connected applications on a strictly commercial point of view. The future of these
       applications depends on the changes of the Romanian cost structure for conventional power
       generation and/or provision of subsidies.
   •   Supply of isolated remote area. If there is a political commitment to supply these isolated
       settlements (i.e. public funding) small wind turbines are an economically attractive alternative
       in connection with small diesel generators and PV system, where wind resources are sufficient.

h) Solar Energy Resource Potential

The average solar radiation in Romania ranges from 1,100 to 1,300 kWh/m2 per year. A solar radiation
map has been issued by the National Institute of Meteorology and Hydrology. There are good
opportunities for solar energy development, and experiences from the past can be used. In the
Renewable Energy Resource Assessment, the EBRD estimates domestic solar water heating for public
buildings and hotels, passive solar systems, and stand alone systems for sites far from the grid, to be the
most promising applications.

Active Solar Thermal Systems: Domestic Hot Water (DHW) solar systems for single or multifamily
buildings and for commercial buildings (mainly hotels), drying and swimming pool heating are the
most promising applications. Solar DHW systems as Demand Side Management measure for electricity
or gas utilities, has gained an increasing awareness all around the world.

Passive Solar Systems: Passive solar systems can be applied only to the building envelope itself. If
maximum benefit is to be achieved, bio-climatic principles should be applied at the design stage, so as
to ensure adequate sunlight and air penetration in the building. If bio-climatic principles are to be
applied in new or incomplete buildings or in retrofitting of buildings within the urban grid, various
constraints are posed by the existing built environment, determining the performance of the systems
applied. In the case of new settlements, far away from urban areas, or extensions of the city plan in the
contours of the urban grid, through integrated building design, the theoretical performance potential of
the passive systems can be obtained, with extremely positive results on the building energy demand and
comfort conditions.

Solar Photovoltaics (PV): Under the current situation, a small number of stand-alone PV plants could
be developed within a rural electrification program supported by the State as a least cost and effective
electrification mode for the rural population, following the conclusion of a demonstration PV program.

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EAST – GSR Project                               WP2 – Romanian market situation & GSR Potential



In the medium term, PV applications for rural electrification could be developed with limited public
funds. Other specific applications could be developed on a commercial basis without any public funds.

The renewables contribution to the 2003 electricity consumption balance is still as low as given bellow:


          Table. 6 Renewables contribution to the 2003 electricity consumption balance
                                                           Power
                       Source
                                                           GWh
                       Wind                                     negligible
                       Small hydro                                    280
                       Biomass                                           0
                       Large hydro                                  12980
                       Geothermal                                        0
                       Solar photovoltaic                                0
                       Solar thermal                                     -
                       Total RES with large hydro                   13260
                       Total RES                                      280
                       without large hydro

No electricity is produced from other renewables than hydro. In 2003, the dry whether lead to a
particular low hydro electricity output. In normal hydro year the hydro output is around 17 TWh.



                       2.1.2 Energy statistics and trends

a) Energy production

Energy production trends

During the period 1999-2003, the electric energy production has increased with 10.7%. In 2003, a very
draught year, the majority of the total amount has been produced in thermal power plant (about 66%).
The share of the total amount of energy produced by hydro power plants has been around 23% and by
nuclear power plant 8.5%.




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EAST – GSR Project                          WP2 – Romanian market situation & GSR Potential




                       Electric energy production between 1999-2003 (mil.
                                              kWh)
                                   1999     2000      2001    2002    2003
                     Total       50.713 51.935 53.866 54.735           57.5
                     Thermo      27.225 31.701 33.497 33.375 38.004
                     Hydro       18.290 14.778 14.923 16.087 13.629
                     Nuclear      5.198    5.455     5.446   5.513    4.907
                     Per capita
                     (kWh)        2.258    2.315     2.404   2.411    2.566




 Fig 5 Production of Electricity in 2003 according to energy sources in Romania, as compared to
      other countries in Central and Eastern Europe, and the European Union 15, for 2005


In the energy sector, Romania is confronted with a series of major challenges stemming from both
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objective causes and circumstances and the delay in carrying out the reforms during the years of
transition.


b) Energy demand/ consumption

                            Primary Energy




                            Fig. 6 Demand of Romania in 2003




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EAST – GSR Project                            WP2 – Romanian market situation & GSR Potential




Table 7 Energy Balance, 2003

TJ              Solid    Crude  Oil    Gas     Hydro., Elec.            Heat     Biomas Total
                fuels    oil    produc         Nucl.                             s
                                ts
PRIMARY         258,199 144,126        395,888 108,053                  627      102,953 1,009,9
PRODUCTIO                                                                                72
N
Imports   106,841 257,237 73,526 162,853                      1,547              -        602,087
Exports                   -97,394 -                           -11,788            -        -
                                                                                          109,223
Marine
bunkers
Stock           -4,347   -2,926   5,727   -                                      -        -1,505
variations
PRIMARY         360,734 398,438 -18,058 558,741 108,053 -10,241 627              102,995 1,501,3
CONS.                                                                                    31
Refineries              -       437,688                                                  39,961
                        397,685
Power plants    -               -48,446 -       -       205,363 110,477 -961
                262,002                 196,836 108,053
Own use,        -21,945 -711    -54,716 -38,122         -61,948 251     -3,762            -
losses                                                                                    181,078
FINAL         76,745         316,384 323,783                  133,133 112,024 98,230      1,059,7
CONSUMPTI                                                                                 55
ON
  Industry    75,491         53,671 190,608                   84,938    20,691   17,096   442,620
  Transport                  172,759 1,003                    6,939                       180,743
  Households, 1,212          29,762 99,359                    41,131    91,333   81,092   344,014
  services
  non energy                 60,150 32,688                                                92,880
  uses
 Source ENERDATA s.a. - WORLD ENERGY DATABASE




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             SC OVM-ICCPET SA
EAST – GSR Project                            WP2 – Romanian market situation & GSR Potential




                          Table 8 Electricity production balance in 2003

                     Electricity balance - 2003    TWh               %
                     GROSS PRODUCTION, of which 57,13                100
                     hydro                         13,36             23,28
                     nuclear                       5,51              9,65
                     wind                          0.00              0.0
                     thermal, of which             38,26             66,97
                        ex-coal                    21,64             37,88
                        ex-oil                     2,5               4,38
                        ex-gas                     14,26             24,95
                        ex-biomass                 0.00              0,01
                     NET PRODUCTION                53,31             93,3
                     Imports                       0,44              0,76
                     Exports                       -3,29             -5,76
                     Transport/distribution losses 7,16              12,53
                     TOTAL CONSUMPTION             43,25             75,7
                     Energy sector consumption     6,25              10,95
                     FINAL CONSUMPTION             37,04             64,82
                        industry                   23,63             41,36
                        transport                  1,94              3,39
                        households, services       11,45             20,03
                     Source ENERDATA s.a. - WORLD ENERGY
                     DATABASE

Electricity consumption increased in the last years by 2 - 3% /year (in comparison with 1.8%/year on
primary energy resources).

The evolution of the final energy consumption followed an increasing trend, but there have been
registered important changes in its structure.

                            Table 9 The final energy consumption
   Year   Total                             of which:            (%)
          (ktoe)   Manufacturing Agriculture Transport Services Households Others*
    1999 21,793         37.2            2.1          14.4        3.6         40.2          2.5
    2000 22,164         38.1            1.8          15.8        3.7         38.0          2.6
    2001 22,438         39.2            1.3          17.7        7.3         32.1          2.4
    2002 23,370         42.5            1.2          18.4        3.8         31.2          2.9
    2003 25,153         41.0            0.9          17.2        7.3         31.3          2.3
    2004 27,332         39.6            0.8          21.6        7.3         28.9          1.8
    2005 25,102         39.3            0.8          16.9        8.3         32.1          2.6
*Other sectors are as follows: non-energy mining, constructions, water collection, purification and
distribution
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Source: National Institute of Statistics-“Energy Balance” collection

Although industrial energy consumption has reduced by 57% since 1990, industry is still the most
energy consuming sector, holding a 40% share of final energy (significantly higher than the EU-27
average of 28%). The energy consumption in this sector increased in absolute values and also as share
in the total consumption.

The evolution of the final electricity and natural gas consumptions are presented in table


                              Table 10 Final electricity consumption
           Total                                    of which: (%)
   Year (TWh) Manufacturing Agriculture Transport Services Households Others
   1999 31.853             56.3              2.5          4.7         4.2 24.7 7.6
   2000 32.734             55.0              1.9          5.7         8.3 23.4 5.7
   2001 36.294             52.5              1.3          4.9        15.3 21.3 4.7
   2002 35.569             58.0              1.2          5.5         7.6 21.8 5.9
   2003   37.500           54.5              0.9          4.9        12.7 22.0 5.0
   2004 38.774             59.9              0.7          4.2         9.2 20.7 5.3
   2005 38.756             56.0              0.6          4.2        10.3 23.8 5.1
Source: National Institute of Statistics-“Energy Balance” collection


                              Table 11 Final natural gas consumption
           Total                                     of which: (%)
  Year (mil.m3) Manufacturing Agriculture Transport Services Households Others
  1999     7,750            59.1             0.8          0.0         5.7 32.8 1.6
  2000     7,991            59.2             0.3          1.0         3.0 34.7 1.8
  2001     8,440            60.1             0.2          1.1         7.1 29.9 1.6
  2002     8,685            61.6             0.5          0.4         1.5 34.2 1.8
  2003 10,059               55.9             0.3          0.3        10.8 31.9 0.8
  2004     9,814            57.0             0.4          0.3         8.7 32.8 0.8
  2005     9,504            53.7             0.5          0.4        10.3 33.6 1.5
Source: National Institute of Statistics-“Energy Balance” collection

Energy consumption trends
Mainly, the evolution of energy consumption has followed the national economy and industrial activity
trend, with significant decreases in 1990 and 1991, and slow increases in 1996-1994. In 1997-1999, the
need for energetic resources, electric and thermal energy decreases gain, following the national
economy. In 2000, the consumption increased with 2.2% in comparison with 1999, and in 2002 has
increased with another 6.8%.




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            SC OVM-ICCPET SA
EAST – GSR Project                            WP2 – Romanian market situation & GSR Potential



                        Table 12 Energy consumption trends (1992 – 2002)




Energy demand

Primary energy consumption per capita is about 1.6 toe/67 GJ. Final energy consumption decreased
sharply in the early 1990s, due to an economic crisis and changes in energy accounting methods. Since
1999, consumption has stabilized at 24.5 Mtoe/1,025,800 TJ.




                                       Fig 7 Energy demand



Energy consumption has stabilized due to improved energy efficiency in industry with large
production, while especially households do not contribute to the energy efficiency, as there is no

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EAST – GSR Project                              WP2 – Romanian market situation & GSR Potential



money for investments. Thus, the residential sector is lagging behind.


c) Energy and environment: CO2-Emissions

Romania was the first Annex I Party that ratified the Kyoto Protocol in 2001. Romania has chosen to
ratify first, and then to establish the national systems for implementation. Romania has committed to
reduce its GHG emissions by 8% in 2008-2012 (base year 1989). Already in 2001, Romania’s total
aggregated gross GHG emissions proved a decrease down to ca. 58% of the 1989 value.




This large decrease is however mainly due to the industrial production cutbacks. Within the efforts
towards a sustained economic growth, Romania’s GHG emissions are expected to increase slightly till
2008 unless Romania is able to prevent emissions by implementing energy efficiency and other GHG
emissions reduction measures (GHG emissions in Romania origin mainly from fuel combustion). In
2003, the Ministry of Agriculture, Forests, Waters and Environment in co-operation with interested
stakeholders is considering a framework for a National Action Plan on Climate Changes.
Under the Kyoto Protocol’s Article 6 joint implementation (JI) mechanism, Romania envisages selling
any “additional” emission reduction units (ERUs) from projects, to other Annex I countries that may
need to buy. Because of its relatively high level of energy intensity, Romania has a great potential to
attract investments through the JI mechanism. Romania has signed bilateral JI agreements with
Switzerland, the Netherlands, Norway, Austria, Denmark, Sweden and the World Bank’s Prototype
Carbon Fund. In September 2003, Romania is having 8 JI projects in different stages of development,
in co-operation with the above-mentioned states and organization, and several others are in the
negotiation phase.
Due to the fact that Romania was passed over in the first wave EU accession, it will continue to employ
the JI framework for developing emissions abatement projects for several years after its neighbours are
engaged in the EU ETS. These does not mean that the Emissions Trading will be forgotten in Romania.
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EAST – GSR Project                               WP2 – Romanian market situation & GSR Potential



Some AAU transactions could be developed in the next years, taking into account the willingness of all
the stakeholders, but the lack of capacity could hinder these activities and also JI projects.


                       2.1.3 National strategy


a) National strategies and programmes

The National Energy Strategy on Medium Term was approved by the Romanian Government (GD no.
647/2004), taking into consideration the energy developments in the European Union as well as the
recent developments in the National Energy System (NES). It aims at the creation of efficient energy
markets, whose development could be ensured in a durable way, in high quality and security conditions
of the energy supply, observing the EU energy efficiency and environment protection standards.

The Strategy establishes three main directions of activity:

       financial unblocking of the energy sector;
       starting the privatization process in the distribution and then in the electricity production sector;
       Ensuring a functional and sustainable development on medium term by stimulating new
       investments for the energy sector.

An essential objective of the National Strategy for Energy Development is the increase of energy
efficiency on the whole chain of natural resources, production, transport, distribution, consumption, by
an optimum use of market economy mechanisms.

The main directions of the national policy in the field of energy efficiency are:

       increasing the energy efficiency in all sectors of the economy,
       promoting new financing mechanisms in order to stimulate investments in the field of energy
       conservation,
       promoting private initiative and development of energy services, promoting new technologies
       with high-energy efficiency and international co-operation in the field of energy efficiency.



The National strategy for use of renewable energy sources reviewed recently the estimated potential for
all renewables sources, as follows:




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EAST – GSR Project                              WP2 – Romanian market situation & GSR Potential




Table 13: The potential of renewable energy sources
                                            Annual potential
Source                                                                                 End use
                                                                ktoe
Solar energy
• thermal                            60 x 106 GJ               1 433                     Heat
• photovoltaics                      1 200 GWh                  103                   Electricity
Wind energy                          23 000 GWh                1 978                  Electricity
Hydro energy                         40,000 GWh                                       Electricity
Of which small HPPs < 10 MW           6 000 GWh                 516
Biomass                              318 x 106 GJ              7 595                     Heat
Geothermal energy                     7 x 106 GJ                167                      Heat


Law on the efficient use of energy

The law on the efficient use of energy entered into force in 2002, after the methodological norms were
approved. The law stipulates that the national policy for the efficient use of energy shall be developed
by the ARCE, on behalf of the Ministry of Economy and Commerce.

An amendment (GO no. 78/2004) strengthens ARCE responsibility in the field of energy efficiency and
in accordance with the priorities of the National Strategy for Energy Development and the GD
941/2004 establishes the new statute of ARCE, regarding to the organisation and operation rules.

The Law no. 199/2004 includes provisions enabling the application of the acquis referring to:

       the main principles of the national policy of efficient energy use (in connection with Art 3.2. of
       the Energy Charter Protocol regarding the energy efficiency and related environment issues)
       the scope of the national policy (in connection with Art 3.3. of the Energy Charter Protocol)
       ensuring the legal framework for defining the strategy, the objectives and the programmes of
       energy efficiency (in connection with Art 5 of the Energy Charter Protocol);
       preparation of technical regulations aiming at increasing energy efficiency;
       fiscal and financial incentives for investment and companies providing management and energy
       services (in connection with Art 6 of the Energy Charter Protocol).

Currently, the provisions of a number of energy efficiency directives are transposed in the Romanian
legislation. The top priority for the Ministry and ARCE is to provide the renewable sector with the
appropriate legal framework.




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EAST – GSR Project                                WP2 – Romanian market situation & GSR Potential




National Strategy for Energy Development 2006-2009

The National Strategy for Energy Development aims at creating efficient energy markets, the
development of which could be ensured in a durable way, in high quality and security conditions of the
energy supply, observing the EU energy efficiency and environment protection standards.

The Strategy establishes three main directions of activity:

1. Financial unblocking of the energy sector;
2. continuing the privatisation process in the distribution and then in the electricity production sector;
3. ensuring a functional and sustainable development in the medium term by stimulating new
investments in the energy sector.

An essential objective of the National Strategy for Energy Development is the increase of energy
efficiency throughout the entire chain of natural resources, production, transport, distribution, and
consumption by an optimal use of market economy mechanisms by

   -   promoting private initiative and development of energy services,
   -   promoting new technologies with high-energy efficiency,
   -   international co-operation in the field of energy efficiency.

The energy consumption per GDP is high in Romania, so it is a political goal to decrease the relative
energy consumption radically as can be seen in Figure 8 below. A comparison in Figure 4 with the EU-
15 members in 2000 shows that even with these improvements, the energy intensity of Romanian
Economy will be twice as high in 2030 as it was in EU-15 in 2000. During this period the EU-15
countries are also expected to have improved their energy systems, leaving Romania behind. Romania
will thus need to target energy savings dramatically in order not to be too vulnerable to energy prices
and emission restrictions. The energy consumption for space heating is crucial in this respect.




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EAST – GSR Project                             WP2 – Romanian market situation & GSR Potential




Fig 8




Fig 9

The Romanian government has encouraged foreign investment in hydropower through Hydroelectrica,
the state-owned hydropower producer.

A minor amount of renewable energy besides hydropower has made its way into Romania’s electricity
generation mix. Biomass and waste incineration have been in use in Romania for many years, though
not in any significant-sized generating facility. The Romanian government is planning to implement a
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EAST – GSR Project                                WP2 – Romanian market situation & GSR Potential



new program for increasing the use of renewable energy that includes photovoltaics, wind energy,
biomass, and geothermal energy.

The promotion of electricity produced from renewable energy sources in the internal electricity market
is underlined in the provisions of the GO 63/1998 regarding the electricity and heat and also in the
provisions of the Electricity Law no. 318/2003. Therefore in chapter V of Law 318/2003 named
“renewable energy sources” definitions, technical utilization and marketing conditions and facilities are
announced:

   •   Art. 51.: Based on this Law, the competent authority (ANRE) will regulate the technical
       conditions for access to the electrical network and the technical conditions for marketing the
       electricity and heat produced in cogeneration from renewable sources.
   •   Art. 52.: Based on technical and economical studies, the development and utilization of
       renewable energy sources are stimulated, the facilities being granted by Government decision as
       a result of a proposal made by the competent authority (ANRE). The promotion of renewable
       energy resources it is also provided by the Energy Efficiency Law no. 199/2000.

In Romania, an indirect stimulating mechanism for utilization of renewable energy sources is regulated
but the schemes for direct subvention of prices for which the producers of electricity from renewable
sources are selling their product are lacking.

Therefore the Order no. 92/2002 regarding the application of Competition Council regulations, issued
on the base of Law no. 143/1999 regarding the state support” adopted the “Regulation regarding the
state support for environmental protection”.

In chapter 3 of this act the general conditions for authorization of state support for investments in
environmental protection are provided:

   •   "Investments for promoting the renewable energy sources are assimilated to the environmental
       protection investments achieved as a result of lacking compulsory national standards. The
       measures aimed to support the renewable energy sources represent one of the long-term targets
       that have to be especially encouraged. The base rate of support for investments made for this
       energy form represents 40% from the eligible costs. In the case of production capacities of
       energy from renewable sources that cover entirely the energy consumption of a community, the
       investments made can get a bonus of 10% over the base rate of 40% from the eligible costs.
       When the needful character of the investments is proved the supplying authority can support the
       investments for producing energy from renewable sources to up to 100% from the eligible
       costs. The respective installations will no longer benefit from other type of support."
   •   "In the case of renewable energy sources the eligible costs of investment are usually the
       additional costs taken by the economic body in comparison with a conventional energy
       installation with the same energy production capacity."



The state support for renewable energy sources can be granted according to the following options:

          when the investments costs are very high and, generally, the state support represents a
       significant percentage from the economic bodies costs that cannot allow obtaining competitive
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EAST – GSR Project                             WP2 – Romanian market situation & GSR Potential



       prices on the market for the produced energy;

           support for renewable energy can be granted by using the market mechanisms as ecological
       certificates;

          support for operation can be granted for new installation for producing energy from
       renewable sources, its value being calculated based on external costs that are avoided.

   Development Strategy of Romanian Oil Industry up to 2010

Approved by the Romanian Government (GD 655/2002) the year. This strategy contains as main
chapters the followings:

       the Development Strategy of Extraction and Production Oil Sector;
       the Development Strategy of Refining and Petrochemistry Sector;
       the Development Strategy of Infrastructure and Distribution Sector.

   the Electricity Law 318/2003

The law states in very general terms the need to promote renewables and energy efficiency. A new
version of the law is under preparation. The new project, approved by Government in April 2006,
includes the transposition of the European Directive 2004/8 on cogeneration promotion.

   the Heat Law is still under consideration in the Parliament.

   GD (Governmental Decision) 443/2003 on the Promotion of Electricity Production from
   Renewable Energy Sources.
This act defines the framework for further specific regulations. It transposes the known European
Directive. Promotion of electricity from renewables may have a positive impact on heating issue as
well, in case of cogeneration using biomass and geothermal resources.


   HG 1535 /2004 - on the Strategy to use renewable

The strategy is more a document of intentions, not very convincing as justification, commitment and
means. It is expected to be updated in 2006.




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           SC OVM-ICCPET SA
EAST – GSR Project                               WP2 – Romanian market situation & GSR Potential




Basic information included here for heat production from renewables are:
                                                          intended new capacities
                                                                2003 - 2010

                           Solar - thermal                          7.34 ktoe
                          Biomass-thermal                         3 249.8 ktoe
                            geothermal                             17.50 ktoe

Reported to the defined potential, the targets represents the following quotas:

Table 14 Quotas
                                      intended new capacities             quotas from potential
                                            2003 - 2010                             %

             Solar - thermal                  7.34 ktoe                           0,5%
            Biomass-thermal                  3 249.8 ktoe                         42,8%
              geothermal                      17.50 ktoe                          10,5%
           Total RES- HEAT                    3275 ktoe

The targets are ambitious, and should be sustained by appropriate legislative and financial regulations.
The foreseen capacities for biomass projects until 2010 will be particularly difficult to be achieved
without a strong legislative and financial positive background.

    GD 1892/2004 - on the Mechanism to promote power production from renewables

Art.3 of the document states that the mechanism to promote renewables is the quota system followed by
the trade of Green Certificates.
The quota of electricity from renewables energy form the gross national electricity consumption was
fixed initially to modest values:

Table 15 Quota of electricity from renewables energy
                             Year                                 Quota, %
                             2005                                   0,7
                             2006                                   1,4
                             2007                                   2,2
                             2008                                   2,9
                             2009                                   3,6
                             2010                                   4,3

    GD 958/2005 modifying GD 443/ 2003 and GD 1892/ 2004.

This act is a further effort to promote renewable as asked by the European energy policy.
The RES quota was increased to 33% and the penalties for non compliance were increased too:
   63€/CV in period 2005-2007
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EAST – GSR Project                                 WP2 – Romanian market situation & GSR Potential



    84€/CV in period 2008-2012




                   Fig 10 New RES quota increased according GD 958/2005


In order to cover the quota, each power supplier has to buy (or produce itself) electricity from
renewable. Today, the RES-E technologies in competition are only small hydro energy and wind
energy.

With the same GD there were fixed, for the period 2005-2012:


                   The minimum value of the CG                      24 Euro/MWh

                   The maximum value of the CG                      42 Euro/MWh


In the adopted financial mechanism it is important that a minimum value for GC was established, and
the value of GC was not let entirely on the market. Thus way, the minim value of GC acts like a
minimal (guaranteed) feed in tariff.

So in 2005/2006, the price obtained for 1 MWh produced by renewable is composed by:

- price of the electricity on the “normal” electricity market....            cca 38 Euro/MWh
- price of GC on the GC market                                               cca 30-35 Euro/MWh



This estimations give a revenue in 2005/2006 of about 70 Euro for 1 MWh produced from RES,
depending on the both electricity and Green Certificates markets conditions.


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    ANRE Ordinance 15 /2005 - Regulation for management and operation of the Green
    Certificates market

The regulation presents in details (23 pages) the procedure to trade the Green Certificates, as the
financial mechanism to promote renewables according the GD 1892/2004.

-   how to issue the GCs
-   the transactions of GCs
-   the actors on the GCs market
-   management of information on GCs
-   control of the electricity suppliers to fulfil GCs obligation

The actors on the GCs market are:
- the Regulatory body (ANRE) is supervising the process;
- the Transport Operator is issuing the GCs
- the Distribution Operator is measuring and reporting monthly the green electricity quantities
- the GC Market Operator is managing the GCs market

As results of this regulatory framework for promotion of electricity from renewables, first important
investments in micro hydro and wind energy are in progress. For the moment, biomass cogeneration
projects development is less evident.

⇒ The Road map for energy development approved by Governmental Decision 890/2003 is in force
  as general strategy on energy

Now is prepared a new document for energy policy, introducing also a National program to increase
the energy efficiency for the period 2006-2010.

Security of heat supply to the residential sector is one of the main concern within the national strategies
for energy supply. A large share of the population has a low income, and the social impact of
liberalized energy markets is difficult to be sustained.

To address this key issue, the legal and administrative framework tries to promote the following
technological directions:

               Improving the buildings insulation, with special focus on multi-apartments blocks
               Improving the heating systems performance, with special focus on district heating
               systems in big cities
               Development of biomass modern use

Engaging renewable energy sources to contribute to the heating systems technologies is only a recent
trend. The main promoter is the Romanian Agency for Energy Conservation -ARCE which defined
clearly the biomass as the viable alternative to the fossil fuels used at high costs in small district heating
systems.




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EAST – GSR Project                              WP2 – Romanian market situation & GSR Potential




b) The National institutional framework

The National institutional framework, which is responsible for the development of RES, is as follows:

Ministry of Economy and Commerce (according to the Government Decision no. 738/2003 establishing
its organizing and functioning) is responsible, inter alia, for drawing up the national energy strategy
regarding to the energy sector evolution, such as power and thermal energy, hydroelectric and nuclear
power, oil, natural gas, mineral resources, mine-geology fields.

Romanian Agency for Energy Conservation (ARCE)

ARCE is in charge of promoting energy efficiency at the national level. Responsibilities include energy
efficiency policy making and programme implementation. ARCE (according to the GD no. 941/2002
establishing its structure and funcion) has legal personality, functioning, operational and financial
autonomy being under the subordination of the Ministry of Economy and Commerce. ARCE is
financed from extra budgetary funds and allocation of funds from the state budget. ARCE has 8
regional offices (in Bucharest, Brasov, Cluj, Constanta, Galati, Iasi Suceava and Timisoara), which can
cover all the country.

The National Electricity and Heat Regulatory

ANRE, established according to the Law no.99/2000, is organized as an independent public legal
person of national interest under the Prime Minister co-ordination. ANRE operates as per its own
organisation and functioning regulation approved through government decision. Its mission is to create
and implement fair and independent regulations to ensure an efficient, transparent and stable
functioning of the electricity and heat sector and market while protecting the interests of consumers and
investors.

ANRE issues, sets up and monitors mandatory regulations to be implemented at national level with a
view to ensuring the proper functioning of the electricity sector and market in terms of efficiency,
competition, transparency and consumer protection. ANRE is entirely financed from funds outside the
budget through fees obtained for licenses, authorisations and other regulatory activities levied upon the
regulated companies and through funds provided by international organisations, as per the legal
provisions on public finances.

Green Certificates Market Operator OPCOM
OPCOM is a legal person which assures Green Certificates trading and determines the prices on the
Centralized Green Certificates Market, performing the functions established by the Regulation for
organizing and functioning of the Green Certificates Market (Order no. 15 / 2005 issued by ANRE).




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EAST – GSR Project                              WP2 – Romanian market situation & GSR Potential




National Regulatory Authority in Natural Gas Sector (ANRGN)
ANRGN (according to the GO no. 41/2000 approved by Law no. 791/2001) is a public institution and
legal person, which elaborates, applies and monitors the regulation system necessary for the natural gas
sector and market function on efficiency, safety, competition, transparency and consumers and
environment protection terms.

The financing of ANRGN, which comes entirely from extra budget funds obtained from fees for
granting authorizations and licenses, has permitted ANRGN to develop its activity according to its own
organization and function rule.

Romania's National Agency for Mineral Resources
NAMR was established in 1993 as the regulatory authority to administer the mineral resources of
Romania and is under government subordination. After the establishment of this specialized authority
for the gas sector (ANRGN), the competencies of the National Agency for Mineral Resources (NAMR)
concerning gas were limited to the concession of exploitation blocks. NARM, in co-operation with
ANRGN, sets up the transmission tariffs for natural gas.

NAMR is a competent authority which coordinates the mining operations under Petroleum and Mining
Laws.

NAMR has the following responsibilities:

       to administrate and survey the Romanian mineral resources, the national geologic fund, all
       national property;
       to compute, register and up to date all mineral resources of Romania in the Mining Book and
       Petroleum Book;
       to negotiate the terms and conclude agreements for the exploration and production of the
       mineral resources;
       to regulate the activities and operations on the basis of these or of any other agreements;
       to establish legal taxes, royalties and prices for prospecting exploration and production
       activities, as well as pipeline transport tariffs for hydrocarbons;
       to issue compulsory regulations and instructions for the mineral resources sector.

The Ministry of Agriculture, Forests, Waters and Environment (MAPAM) is responsible for the
development of the general environmental policy and specific legislation related to water management
and environmental protection. It is also the Implementing Authority for the projects financed through
the ISPA – Environmental Program. Responsibility for the implementation of the environmental policy
at local level lies with local authorities.

In the context of increased decentralization, enhanced responsibilities were attributed to the 42 County
Environmental Protection Agencies, which are responsible for environmental factors monitoring and
are entitled to issue the environmental permits and authorizations.

In order to improve central and local inspection effectiveness, the Environmental Guard was set up. It
is an environmental control body with legal personality, financed from the state budget and operating
under the authority of the MAPAM.

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EAST – GSR Project                               WP2 – Romanian market situation & GSR Potential



The Inter-ministerial Committee for the coordination of environmental field integration into sectoral
policies and strategies at the national level was set up with the aim of developing a unitary
environmental policy. Its members are representatives of all ministries who analyze and approve all
environmental policies, strategies and legislation, having an important role in promoting and updating
the National Environmental Action Plan and assessing the progress of the National Programme for the
Adoption of the Acquis.

In order to adopt the EU institutional structures, two objectives have been set, namely the establishment
of 8 Regional Agencies for Environmental Protection and of the National Agency for Environmental
Protection.

c) Energy related funds and programmes

The Romanian Energy Efficiency Fund (FREE)
Established (Law no. 287/2002) as an institution of public interest having its own legal personality,
independence and financial autonomy and headquartered in Bucharest. The Fund's purpose is the
management of financial resources received by Romania from the Global Environmental Facility
(GEF) through the International Bank for Reconstruction and Development (IBRD).

Special Fund for Energy System Development (SFESD)
is established by Government Decision no. 29/1994. This fund can be used for achieving the energy
conservation projects. The manager of SFESD is the Ministry of Industry and Resources (MIR)
through the Romanian Agency for Energy Conservation (RAEC).

The Environmental Fund is a financial and economic tool, aiming to support the development of the
projects comprised within the National Environmental Action Plan in conformity with the
environmental norms and standards in force and envisages, as a main objective, the necessary
investments for the adoption of the Aquis Communautaire. The institutional framework for the
Environmental Fund is estabilished by the Environmental Fund Administration, a legal public utility
body, under the authority of the Ministry of Agriculture, Forests, Waters and Environment (MAPAM).


               2.2. Solar hot water market
                       2.2.1 Background

Romania has exploited a significant amount of solar resources in the past, but since 1990, the
manufacturing, installation and research and development has virtually ceased. The potential market for
solar applications is very large but specific incentives will be needed in order for this potential to be
realized.

In Romania, since 1979, a large scale program for various solar applications was implemented; solar
domestic hot water systems for hotels at the Black Sea and for apartment blocks, solar house near
Bucharest, solar drying for agricultural products in the South Plain, solar cooling for fish preservation
in Dobrogea region, industrial applications.       A lot of efforts have been made in research and
development activities and an important human potential and infrastructure were available. The peak of
installations occurred in 1984-85.

The poor quality of the equipment and installation made in Romania and the lack of maintenance in
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EAST – GSR Project                                        WP2 – Romanian market situation & GSR Potential



many of the early installations resulted in a deep dissatisfaction, creating an additional barrier to further
solar energy utilization. The manufacturing, installation, research and development activities have
practically stopped since 1990 because of the market reforming and the resulting difficult economic
situation.

                          2.2.2 Solar market key figures

The annual market of solar collectors for household systems is rather low; because a great part of the
population currently faces enormous financial problems and few people can afford the investment in
solar systems. A big part (90%) of the sales of solar systems belong to those who build new houses or
new private hotels.
The technologies applied for solar thermal energy conversion are the same as the ones applied in other
European countries.

The solar thermal installations, implement under different programs, were mainly for:

-Hot water in public buildings (hospitals, kindergartens, city halls etc.), in domestic and tourist sector;
-Solar dryers in agricultural products industries (one installation for cereal drying in Calarasi county).

The main clients in the collective sector are as follows:

    − hotels and holiday sector;
    − swimming pools – public and private;
    − industry – for wood processing and agricultural products.
Already in the 80s, solar domestic hot water systems, solar drying and cooling and industrial
applications were developed. The size, variety and distribution all over the country of the solar systems
installed were impressive.

Till 1989, 1,000,000 m2 solar collectors, mainly flat plate, were manufactured and installed in Romania,
within large systems up to 9,000 m2. Evolution of solar collector installations in Romania is shown in
the following figure.
     F ig     1 1 . E v o lu tio n            o f in s t a lle d s o la r
  1 0 0 0   m 2
                                                  c o lle c t o r s

            2 5 0

            2 0 0

            1 5 0

            1 0 0

              5 0

                  0
                      1   1   1   1   1   1   1   1   1   1   1
                      9   9   9   9   9   9   9   9   9   9   9
                      7   8   8   8   8   8   9   9   9   9   9
                      9   1   3   5   7   9   1   3   5   7   9
                                                                  Y e a r




The pick of installations occurred in 1984-1985. The poor quality of the equipment and installation and
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the lack of maintenance resulted to a deep dissatisfaction, creating an additional barrier for further solar
energy utilization.
After 1990, the low conventional fuel prices and the poor availability reduced the interest for further
necessary efforts.
Only a very small part (about 7%) of the 1,000,000 m2 installed collectors area, is still in operation.

After 1989, the solar thermal applications were abandoned. A very small part of the former installed
collectors is still in operation, producing some 15 TJ heat, in majority for drying applications.

Only after the year 2000 there were registered the first signals regarding the development of a solar
thermal applications market. The most attractive niche market seems to be the small size systems (4-8
m2), for hot water in buildings.



                       2.2.3 Solar radiation figures and productivity of solar collector


In Romania, the average solar radiation ranges on horizontal area from 1,100 too 1,300 kWh/m2 per
year for more than half of the country area. The solar thermal potential is estimated to 60 PJ/year (1400
ktoe/year).
Thus the solar radiation on horizontal area for Romania is approximately 200 million GWh per year
(i.e. the theoretical potential for solar energy).

If we consider that the thermal solar systems for heat and hot water are practically related directly to
the area covered by buildings it is possible to evaluate in this way the technical solar thermal potential.
The technically usable area for solar collectors is approximately 25 percent of the roof area of
buildings. As the area of buildings roof in Romania is about 220 km², it results that 56 km² of these
could be used for solar collector. Following these rough considerations, the technical potential for the
output of solar thermal systems results 80 PJ/year, a figure close to the one mentioned in the Strategy
for renewables development.

A solar heat collectors output of 60 PJ/year may replace almost 50 percent of the households’ hot water
supply or 15 percent of the thermal energy used in the current heating, today. Under the present
meteorological-solar conditions, in Romania, a solar heat collector is usually functional from March to
October with 40 – 90 percent efficiency.

Together with modern collectors installed in the last year, only some 90 TJ solar heats are produced
today.

Under the Strategy provisions, about 7.34 ktoe/year (307 TJ) will be produced in 2010, by 215,000
square metres of collectors.
The most favourable area is the Black Sea coast with an insolation period of above 2300 hours/year.
In Romania, the proper inclination for the solar panels is 450 for the whole year, South orientated.

Air Temperature

The air temperature characteristic of the climate is a result of the solar radiation intensity and depends
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on the amount of thermal energy, radiated from the surface of the earth during its 24 – hour and annual
cycles. Air temperature affects the thermal conditions of the surrounding structures and (by its extreme
and average values) the adjustment of the heating and air – conditioning systems in constructions, as
well as the solar energy heating systems. Thus for instance, the capacity of heating systems depends on
the calculated temperatures for the respective region (N.B: the lowest winter temperatures).
Temperatures are also decisive when one has to determine the respective thermal insulation
requirements of particular buildings.

                 Region            Average total global       Real available solar potential
                                  radiation [MJ/m2/year]
             Western Plain                 4.815                   Medium-High (MH)
              Transylvania                 4.666                     Medium (M)
             Subcarpathians                4.982                   Medium-High (MH)
               South Plain                 5.147                   Medium-High (MH)
                Moldavia                   4.773                     Medium (M)
                Dobrogea                   5.384                       High (H)
              Danube Delta                 5.046                   Medium-High (MH)
               Carpathians                 4.687                     Medium (M)




                                     Romania: Historical regions




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                      2.2.4. Local bodies, prescribers, certification

Main suppliers of solar-thermal equipment on the Romanian market


Although the Romanian solar-thermal market is still small, the companies on this market are ready to
distribute and install all types of equipment necessary for solar water heating.

Although there is no large request for solar-thermal systems in Romania, the number of producers and
distributors on the market is important and has an increasing trend. Local producers are offering
traditional, quite cost effective, solar panels. More efficient West European equipment is
commercialised by many other firms. However the number of installed equipment is very low (about
400 m2/year), a real market still waiting to be opened.

At the beginning of 2004, there were around 7 relevant companies trying to promote their solar-thermal
equipment on the Romanian market, and therefore contributing to the opening of this market.

•   VIESSMANN Romania

The Viessmann group is one of the most important European manufacturers of heating technology
products. Viessmann produces heating equipment in ten factories, both in Germany and abroad. Their
subsidiaries comprises a total of 33 countries, including Romania. The main products on the
Romanian market are small and medium size gas heating systems. Additionally, Viessmann sells in
Romania also solar thermal equipment.

The VIESSMANN ROMANIA solar products range comprises Vitocell B100 and Vitocell B300
boilers as well as Vitosol 100 collectors, designed for these boilers.

•   HORNOFF TRADE CONSULT (HTC) – VAILLANT

Vaillant Hepworth Group ensures with their experience, top performance in heating technologies,
building materials, home products and automotive. The company’s head office is based in Remscheid,
Germany.
VAILLANT is represented in Romania by HORNOFF TRADE CONSULT (HTC). HTC range of
products includes solar thermal components as VIH S 300/400 boiler, VFK 2.0 collector, VRC-Set S
comfort regulator and a solar station.

•   SC IAICA-SA ALEXANDRIA

IAICA Alexandria is a Romanian producer of solar-thermal systems, since 1997. The organization is
specialized in producing equipment for heating, ventilation and air conditioning.

IAICA Alexandria produces and distributes solar collectors and different thermo siphon operation solar
systems IST.

•   CORINA-GEALAN SRL - Solar Installations Department

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EAST – GSR Project                              WP2 – Romanian market situation & GSR Potential



CORINA-GEALAN is a Romanian company founded in 1994. The company is a part of the German
company GEALAN, mainly known as windows producers. In Romania their main business is centred
on aluminium and PVC frame windows. At the same time, the company promotes solar-thermal
systems, and central heating systems.

CORINA-GEALAN SRL distributes HELIOSTAR vacuum solar collectors, MAZDON vacuum tubes
and various types of boilers.

•   SC MSTC SRL

SC MSTC SRL is a Romanian firm involved in solar-thermal systems and building materials. MSTC is
the main distributor of several Greek solar-thermal manufacturers and of WILCO boilers.

•   SOLART International

SOLART International is a company specialized in heating: solar and geothermal heating. SOLART
realized applications of both technologies in Romania, on the Romanian littoral. SOLART distributes
all range of European components for solar-thermal systems like: solar collectors, boilers, external heat
exchangers, automation equipment and others.

•   GERMAN TECH SRL

GERMAN TECH SRL is a company representing the German manufacturers: BUDERUS and RITTER
SOLAR. They supply solar heating systems with panels and/or vacuum tubes.

•   ALFABIT

ALFABIT is a company selling products of the American THERMOMAX company.

Each company managed to gain an image on the Romanian solar-thermal market, even if there was no
intensive promotion of the solar-thermal technology benefits to the general public.
CORINA-GEALAN and VIESSMANN are the most representative companies on this incipient market.
MSTC, GERMAN TECH, SOLART International and HORNOFF TRADE CONSULT follow. This
ranking should be accepted as a momentary impression and this order can be changed easily during the
solar-thermal market development.




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            SC OVM-ICCPET SA
EAST – GSR Project                              WP2 – Romanian market situation & GSR Potential




                      2.2.5. Products

   •   Types of products available (collectors, family water heaters)
   •   Quality of product
   •   Potential for technology transfer


Almost all main European solar thermal equipment is available on the Romanian market: unglazed,
glazed flat plate and evacuated tube collectors.

The biggest part of the distributors also supplies the needed adjacent equipment as control units and
pumps.

The solar collectors are made from stainless steel, aluminium, copper and/or special solar glass. The
collectors' surface area per unit varies from 1.7 m2 to 2.5 m2.
The usual capacity of the boilers varies between160 and 300 liters on the Romanian market (for family
use) and up to 1000 liters for larger applications

Almost all main European solar thermal equipment is available on the Romanian market: unglazed,
glazed flat plate and evacuated tube collectors.

The biggest part of the distributors also supplies the needed adjacent equipment as control units and
pumps.

The solar collectors are made from stainless steel, aluminium, copper and/or special solar glass. The
collectors surface area per unit varies from 1.7 m2 to 2.5 m2.
The usual capacity of the boilers varies between 160 and 300 liters on the Romanian market (for family
use) and up to 1000 liters for larger applications.
The Solar Thermal Equipment market in Romania is rapidly developing, in its vast majority in private
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           SC OVM-ICCPET SA
EAST – GSR Project                               WP2 – Romanian market situation & GSR Potential



house sector, but it is still in an initial phase.
For Romania, of special importance is the way of protecting the systems against freezing, since winter
temperatures may be well beyond 0 degrees. The most popular way is the utilization of propylene –
glycol mixture with water. The system as a type should be executed in a way that it implements an
indirect contact between the working (solar) fluid with the domestic water through heat – exchanger.
Other method is emptying the installation during cold months.



                      2.2.6. Barriers to overcome for implementation of solar thermal installations

The barriers for development of RES and especially for solar thermal installations are as follows:

Institutional barriers:
    •     Lack of a national program for the development of renewable energy sources and related
               technologies;
    •     The various state institutions, although having a positive attitude towards renewables, still do
               not pay the necessary attention to these energy sources;
    •     Lack of regional and municipal structures, dealing with energy planning and utilization of
               RES;
    •     There are no authorized laboratories for quality control of the produced equipment.
    •     Lack of related codes and standards covering the technical requirements of the equipment
               and installations.

       Currently, a minor amount of renewable energy besides hydropower has made its way into
Romania's electricity generation mix. Biomass and waste incineration have been in use in Romania for
many years, though not in any significant-sized generating facility. The Romanian government is
planning to implement a new program for increasing the use of renewable energy that includes
photovoltaic, wind energy, biomass, and geothermal energy.


Opportunities assisting RES (including solar energy)

               •      The prices of conventional energy have increased many times. Nevertheless, the
               energy market is still not liberalized. Under the international pressure for liberalization
               on the energy sector, the energy prices soon will be in line with the international levels
               and RES will be more competitive.
               •      Environmental awareness is growing and RES are seen as a clean future source
               of energy.

Decentralization of the state regulation and larger autonomy of the local and regional authorities lead to
development of their natural resources as they see triple dividends: environmental improvement,
economic development and increased employment.




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            SC OVM-ICCPET SA
EAST – GSR Project                                         WP2 – Romanian market situation & GSR Potential




                     2.3. Sectorial Approach

                           2.3.1. Hotel sector

   •    Number of hotels per category
   •    Year of construction
   •    Occupancy rate (%)

The annual number of tourists visiting the Romanian littoral has an ascendant trend, to around 700,000
visitors in 2004. The distribution between the different littoral resorts is given in figure .

The tourist Romanian seaside lies between Mamaia resort (in the North) and Vama Veche resort (in the
                                                                South).
        Distribution of tourists within resorts, 2003
                                                                This area includes the following resorts:
                                                                Mamaia, Constanta, Eforie Nord, Eforie Sud,
                                                                Costinesti, Neptun, Olimp, Jupiter, Venus,
                                                Mamaia          Saturn, Mangalia, Cap Aurora, Vama Veche
                                                Eforie Sud Nord
         19%                                                    (North to South enumeration).
                              35%          Neptun
    6.50%
                                           Saturn
       7%
                                           Venus
                                                                Today, almost all the hotels in theses resorts are
       7.50%               14.50%          Jupiter              preparing the hot water by using fossil fuels, and
            10.50%                         Other resorts        even by electricity.


Various technologies are in place, fuelled by natural gas or liquid fossil fuel (oil).

From the price point of view, the technologies are clasiffied as foloowing:
• Electricity
• Oil
• Gas

Recently, a natural gas network for heating purposes was introduced in Constanta, the capital of the
Dobrogea county, the third largest city in Romania. Starting from Constanta, some adjacent resorts
will enjoy the natural gas distribution. Already part of 0gfthe Mamaia hotels is supplied with natural
gas.

The natural gas use is today still a cheap resource for heating needs on the Romanian market, with a
fuel price of some 310 Euro/1000 m3. The solar thermal technology can hardly compete here.
So the study will address under the present conditions only the tourist resorts where the natural gas
supply will not be available in short term. This means the zone South of Eforie resort, to the Mangalia
city.
Here the existing heating systems are cost-expensive and excessive polluting (oil). Solar-thermal
systems are a real alternative for these hotels, located on the South of the littoral.

More than that, due to some local "monopoly" reasons, some hotels are captive to heat water boilers
stations fuelled by oil, and are paying a very high price for the heat acquired: up to 5 times the
reference heat price in Romania.
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               SC OVM-ICCPET SA
EAST – GSR Project                              WP2 – Romanian market situation & GSR Potential




The use of solar thermal systems is not unknown in the littoral area, as in the years 1986-1989, there
were installed here systems totaling 180.000 m2. Individual systems were as large as 9,000 m2 (i.e.
9.126 m2 in Venus resort, and 9,800 m2 in hotel Delta-Mangalia). As mentioned before, the low
quality and poor maintenance led at that time to a rather disappointing performance.

In the last two years, there were signaled several solar thermal application in hotels, this time using
modern European technologies. Examples are the systems installed in several villas in Costinesti.

In the last decade, a massive privatization of these hotels occurred, mostly of those built before 1990.
The new owners are attracted by innovative technologies, bringing image benefits, as solar use.



 A view on the Romanian littoral; and
 targeted resorts and hotels are given in the
 following figures. The targeted resorts in
 our study are, (form North to South):
 Costinesti, Olimp, Neptun, Jupiter,
 Aurora, Venus, Saturn, Mangalia. These
 resorts are laying on some 25 km of the
 Romanian littoral.
 Mangalia is a city with regular population,
 while all the other resorts are only
 summer holiday resorts.

 A comprehensive research was done to
 list the hotels in these resorts. Detailed
 maps of resorts with hotels (black points)
 are given bellow.

 Black Sea coast resorts




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           SC OVM-ICCPET SA
EAST – GSR Project                           WP2 – Romanian market situation & GSR Potential




       Resort Costinesti




       Resorts Neptun and Olimp




       Resorts Jupiter and Aurora




       Resort Venus




       Saturn resort




The hotels architecture embraces a large range of construction types.
The large majority of the hotels were built in the '80s, according a centralized system, therefore
resulting a "linear" look. This standard arrangement may be unexpectedly an advantage for solar hot
water systems introduction and replication.
After hotels privatization, important improvements and retrofitting were applied. Regarding the hot
water system, little was done, most of the technologies using oil.
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           SC OVM-ICCPET SA
EAST – GSR Project                                                      WP2 – Romanian market situation & GSR Potential




The hotels ranges between up to 350 rooms each and up to 11 floors.



                                                                 A typical medium size hotel has 3 or 4 floors, with some
                                                                 80 two-beds rooms.




   while larger hotels are up to 11 floors.




A comprehensive list of the resorts and hotels analyzed in this study, with main data, is given in annex 2.

Synthetic data are given bellow:

                                            Number of Resorts                           8
                                         Number of Hotels                             125
                                         Total capacity (persons)                    40 700
                                         Available roofs surfaces                  69 500 m2

                                                                                        Almost all hotels are open only
               Fig u r e 1 1 . HO T EL S RA T E O F O C C UP A NC Y
                                                                                        summertime. The holiday campaign
                                                                                        starts on May 15 and ends on
    100%                                                                                October 1st.
     80%                                                                                The need of hot water follows this
                                                                                        seasonal use, so it is important to
     60%                                                                                rely on "hotel rate of occupancy", as
     40%                                                                                a report between the number of
                                                                                        occupied beds and the total beds
     20%                                                                                capacity.
      0%
                                                                                        This rate, according the period, is
                                                                              1


                                                                              2
                     E1


                               E2




                                                                            R


                                                                            R
                                                        1


                                                                2
                                        1


                                                2
           2




                                                      ST


                                                              ST

                                                                         BE


                                                                         BE
                                     LY


                                             LY
        AY




                                                                                        given in the figure 11.
                 N


                           N
                JU


                          JU




                                                     U


                                                             U
                                    JU


                                            JU




                                                                   EM


                                                                      EM
       M




                                                    G


                                                            G
                                                 AU


                                                         AU


                                                                 PT


                                                                    PT
                                                              SE


                                                                    SE




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               SC OVM-ICCPET SA
EAST – GSR Project                               WP2 – Romanian market situation & GSR Potential




a) Relevant regulations for solar market in the hotel sector:

The "National Strategy for Energy Efficiency", issued in February 2004, highlights that "taking into
account the actual potential for energy savings, the building sector represents the most important area
for energy efficiency measures".

Energy efficiency standards have been introduced for most household appliances and for buildings.

Almost 2700 municipalities, including 182 cities, are responsible for the environmental protection,
housing, heat supply, street-lighting, pre-schools and primary schools, and a range of public buildings.
Above the municipalities are the 42 counties, responsible for coordinating the actions of the
municipalities.
Local authorities are fairly autonomous with regard to budgets. Local taxes and a share of income tax
form the bulk of the budgets of municipalities.

       Law of residential buildings

    Romania has a supportive Thermal Buildings Rehabilitation Law, modified in December 2005 for
the benefit of end-users. The law has been changed several times due to low attraction to residents, so
that the current version states that the cost of building thermal rehabilitation is divided in equal parts
among owner, local authority and the Ministry of Transportation, Construction and Tourism (TECP).
The state pays for an energy audit and for project development. The Ministry of Transportation,
Construction and Tourism3 – the Thermal Energy Conservation Program is a Project Coordination
Unit, which runs a multi-annual Thermal Buildings Rehabilitation Program for multi-family buildings.
The unit also successfully finished a Thermal Energy Conservation Program (TECP – for power plants
and pipe networks) in five Romanian cities, cofinanced by EBRD. The unit arranged meetings and
workshops for householders (owners and renters), in order to increase their awareness of energy
efficiency and the long-term benefits, applying the domestic energy saving measures in multi-level
buildings.
The law sets up the framework for annual thermal rehabilitation programs. The municipalities deliver
substantiated applications for inclusion of specified buildings into the annual program, whereas the
ministry decides within its budget limitations on which buildings to include in the annual program.
Lack of funds may be a major constrain to the program, but it is open for additional funding if this can
be attracted.

The Law of Buildings 114/1996 establishes two major Government obligations within the institutional
framework for buildings:

• The Government is responsible for establishing a development policy in the field of dwelling
construction at the country level.
• The development programme for dwelling construction should be developed by Ministry of Public
Works, Transport and Dwellings, based on information provided by the local councils and other public
administrative institutions concerned, and in accordance with the documents of urban and regional
planning approved by law.


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            SC OVM-ICCPET SA
EAST – GSR Project                              WP2 – Romanian market situation & GSR Potential



Moreover, the Law of residential buildings establishes two relevant principles for the national
policy in the field of buildings:

• The free and unrestricted access of every citizen to a dwelling;
• The dwellings (building, utilization and administration) are of national interest and represent
a major and long-term objective, both for the public and the central and local forms of government.

The law concerns households owners because:

• It regulates the social, economic, technical and legislative aspects related to dwelling building and
utilization;
• It defines and develops the dwelling types;
• It prescribes the development of dwelling building;
• It determines the rules for renting;
• It establishes the procedures for the dwelling administration and the organizational and
functioning rules of the owners’ associations.

   Law 372/13 December 2005 regards the energy efficiency in buildings and is transposing the
European Directive on energy performance of buildings.

     Law 199/2000 (modified by the Government Ordinance 78/2001) relating to energy efficient
utilization creates the legal framework necessary for developing and applying the national policy on
energy efficient utilization.

    Ordinance 29/2000, approved by Law 325/2002, on the thermal rehabilitation of the existing
buildings stock and stimulating the energy saving. The law asks for an energy efficiency certificate for
buildings.

    Ordinance 174/2002, approved by Law 211/2003 relating to the establishment of special measures
for the thermal rehabilitation of multi-storeyed buildings - block of flats. The law focuses on typical
block of flats built in the years 1950-1985, sited in big cities and supplied with heat from centralized
district heating systems. The budget for thermal insulation improvement is covered 15% form direct
owners contributions, and 85% form state subsidies and credits.

    Ordinance 174/2002, approved by Law 211/2003 relating to the establishment of special measures
for the thermal rehabilitation of multi-storeyed buildings - block of flats. The law focuses on typical
block of flats built in the years 1950-1985, sited in big cities and supplied with heat from centralized
district heating systems. The budget for thermal insulation improvement is covered 15% form direct
owners contributions, and 85% form state subsidies and credits.

    Programme « District Heating 2006-2009- Performance and efficiency » was approved by
Government beginning April 2006. The objective is to improve the performance of obsolete and
inefficient district heating systems, mainly in big cities.

    National programme for residential energy costs reduction, by improving energy efficiency
    and renewables use, in year 2006
The programme was approved by Government in March 2006. Its objective is to diminish the
residential energy bills by 15-25%, securing at the same time the comfort and security of supply. The
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programme will be managed by ARCE and will promote the use of renewables and efficient
cogeneration. The total expected investments are around 250 millions RON/year (70 millions Euro).
The local authorities investing in renewables as source for heating systems or electricity production
will receive a subsidy of maximum 30%.

Already tens of projects proposals are in the ARCE portfolio. We mention:
- geothermal supply of the Nufarul area in Oradea city within a 18 millions RON investment;
- geothermal supply of the Sacuieni city within a 1.5 millions RON investment;
- switching to sawdust fuelling of a thermal station in the Prungu Bargaului locality, Bistria Nasaud
   county
- modernizing the thermal station of water treatment station in Sfantu Gheorghe city, by using
   biogas;
- thermal solar panels on buildings roofs in the Tecuci city.

Most hotels particularly in the tourist regions at the Black Sea coast have no heating. The climate is
moderate in this region and most of the hotels are closed in the winter or operate at a very low level
only.
Probably for similar reasons heated swimming pools are very rare. Due to the climate conditions at the
Black Sea coast swimming pools reach comfortable water temperature within the season through solar
radiation without any equipment.

Domestic Hot Water (DHW) is the most important energy-consuming sector in the hotels. Usually
DHW is heated by means of electricity and takes the biggest share of a hotel’s electricity consumption.
In almost all the hotels investigated, no other energy carriers are used and therefore the production of
domestic water is the largest energy consumer in these hotels.

The average electricity consumption obtained from a number of hotels is 3,3 kWh/ overnight. DHW
accounts for 45 – 55% of total electricity consumption, or 1,7 kWh/ overnight approximately,
according to technical staff estimates.


                      2.3.2. Housing sector

a) National housing stock data

According to the national census 18 March 2002, the Romanian housing stock is 4.846.572 buildings
(8.110.407 dwellings), from which 23.5% are located in urban area. An average (fictive) dwelling has
an habitable surface of about 37.5 m2 and can accommodate 2.6 persons.

In comparison with 1992, the total number of buildings has been increased of 355.000 units most of
them (3/4) in rural area.

As of property form, 97% of the total number of buildings is privately owned, as the consequence of
retro cessions, selling of all state owned buildings and the appearance of new buildings.

The great majority of these dwellings are situated in old buildings, between 15 and 55 years of age,
with poor insulation and great wear. Here we have the structure of housing stock depending on their
age:
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                                                   < 10
                                                   years         > 55
                                       10-20
                                                    3%           years
                                     years 7%
                                                                 25%




                              20-40
                              years                             40-55
                               37%                              years
                                                                 28%

                        Fig 12 Structure of housing stock in Romania by age

   The share of buildings with one dwelling (monofamiliar house), is well above 95% from the total
number of housing stock. Block of flats represents only 1,8% from the total numebr of buildings but
shelter 39% (2.984.577 apartaments) from the total number of dwellings in Romania (1992 census).

In 1995 there were 150 million houses in then 15 member coutries of the EU.


                        < 30 years                                  > 45 years
                           28%                                         32%




                                                30-45
                                                years
                                                 40%
                       Fig 13 Structure of housing stock in EU by age (1995)

b) Technical information

- Energy efficiency potential for buildings in Romania
Thus, the normated thermal resistances used in the period 1950-1985 had a low level, leading to a
global thermal isolation coefficient of about 1,0 - 1,3 W/m3K.
A raise of the needs of thermal protection, taking into consideration the realization of some savings of
energy and fuel, has been obtained only in the year 1984 by the Decree 256-84 and of the normative
NP 15-84, that imposed values significantly higher for the specific thermal resistances of different
components of the dwellings cover, different for climate zones. With these characteristics, have been
built between 1986-1990 about 12.93 (16,1%) of the blocks of flats, for which the necessary of heat
have been reduced with about 20% (from about 1,0 W/m3K, to about 0,8 W/m3K). The heat
engineering exigencies, remained inferior to the ones adopted in some advanced European countries,
because the utilization of the most efficient heat insulating material - cellular polystyrene – was still
forbidden.
The STAS 6472/3-89, appeared in 1989 and marked a progress from the point of view of the values of
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the minimum thermal resistances requested, and also by imposing a new and more rigorous calculation,
which included the effect of the thermal deck and the risk of condense. After 1990, and until 1992, a
relatively reduced number of blocks of flats have been built, around 651 (0,8%), most of them with a
heat insulating system according to the prescriptions before 1990. Starting with 1998, the new thermal
normative came into force, imposing a substantial raise of the exigencies of thermal insulating, both on
criteria’s of interior comfort and on criteria’s on energy saving for heating. As a result, the normated
global coefficient of thermal insulation is about 0,55 W/m3K.
Based on the made analysis and measurements, the experts consider prioritary the thermal
rehabilitation of the existing blocks of flats from the urban area because:
- 37-49% of the total final energy consumption in Romania is used for heating and hot water of the
blocks connected to the centralized heating system;
- the blocks of flats represent 72% of the existing dwellings in the urban area, about 58% of the existing
block of flats (2.4 million apartments) build before 1985, would need rehabilitation and thermal
modernization.
A recent comparison with the norms of the EU (15) members and some ex-communist countries is
presented in the following table. The big values of the heat transfer coefficient U for walls and roof
corresponding to Germany and Spain is due to the inclusion in the calculation of the stained glass
surfaces and not only of the opaque ones.




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Table 16 Standardized Thermal insulations in Europe

                                 Walls                    Roof                    Floors
                            U       Thickness       U      Thickness        U         Thickness
          Country      [W/m K] 2
                                  ]    of the    [W/m   2
                                                              of the      [W/m  2
                                                                                        of the
                         = 1 / Rt   insulation     K] ]     insulation      K]]       insulation
                                        [m]]     = 1 / Rt      [m]]      = 1 / Rt        [m]]
        Belgium        -            75 - 100     -         80 - 120      -          40
        Denmark        0,35         125 – 150    0,20      200           0,30       150
        Finland        0,28         150          0,22      200           0,22       200
        France         0,54         70           0,35      120           1,00       40 – 50
        Germany        1,2 – 1,5 60              0,30      140           0,55       60
        Ireland        0,60         40           0,40      100           0,60       -
        Italy          -            -            -         -             -          -
        Holland        0,374        70           0,374     85 – 100      0,68       40
        Norway         0,30         125          0,20      200           0,30       150
        Spain          1,4 – 1,8 -               0,70 – -                0,70 – -
                                                 1,4                     1,00
        Sweden         0,30        125           0,20      200           0,30       150
        Great          0,45        50            0,25      150           0,45       25
        Britain
        Estonia      0,45                    0,25                    0,50
        Lithuania    0,50                    0,25                    0,30
        Poland       0,55                    0,30                    0,60
        Romania      0,55                    0,33                    0,60
       Source : Thermie Program, Insulation Measures for Retrofitting of Residential Buildings

Although, it seems that our country touched a performant level from the point of view of the
reglementations, at the EU level it is estimated that until the year 2010, for the buildings it exists a
potential of energy savings for heating, hot water, air-condittioned or lightning of about 22% of the
present consumption. This saving potential is defined as representing the investments in energy
efficient technology, having a recuperation period of 8 years most, and alowing a recuperation rate
bigger than the alternative investments, including the investments in the production of energy. As it has
been shown in the Report over Progress in Climate Change from Europe, this figure has been based on
a normal rate of modernisation and rehabilitation for the existing buildings, a net annual raise of 1,5%
in building stock as well as a growing use of new technologies in buildings.
In Romania, during the wintertime, are considered four climate zones (mentioned in national
regulations - STAS 1907/1-97 and in Annex D from C107/3).
The number of degrees-days of the heating/cooling season is calculated for each region according with
a statistical algorithm (STAS 4839-97) where the average monthly temperatures are also mentioned, as
well as the average monthly intensity of solar radiation by each locality.
The calculation of the outdoor heat input and the exterior climate parameters over summer time is
performed according to STAS 6648/1, 2-82.
Although summers in Romania are hot, the country’s continental climate results in a heating season
that is very sharp, although relatively short. The heating season lasts for about 180 days, with the
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number of degree-days ranging from 2,900 to 5,150. The building regulations mandate minimum
insulation standards on new buildings, but these are considerably less stringent than in most Western
European countries. In any case, as these regulations apply only to new buildings, they will have little
or no impact on the thermal insulation standards of most Romanian homes. A large proportion of new
dwellings construction is both financed and performed by the future occupant, and so it is likely that
every opportunity is sought to cut costs. Under these circumstances, tightening the building codes to
include higher levels of thermal insulation would probably achieve very little.

According to the current Romanian standards, the global coefficient for the thermal insulation is 0.55
W/m3 K. The coefficients for the thermal transfer (U) are the following:

                                 U-values (W/m2K)
                                 Walls                            0.55
                                 Roofs                            0.33
                                 Floors                           0.60

The market for building insulation materials is thus dictated largely by the rate at which the dwellings
are refurbished. This is likely to be constrained by the limited spending power of households, and the
non-availability of finance. It is estimated that at least one-third of Romania’s 8.1 million dwellings are
in urgent need of major refurbishment, including energy efficiency improvements. To realise this
substantial market for insulation materials, it is likely that programmes involving financial support
would be necessary.

c) Relevant regulations for the solar market in building sector

After 1990 Romania started reforms toward the implementation of market economy. The prices of
energy sources increased considerably during the last decade and the trend is that this increase will
continue.
       In order to improve the legislative framework concerning the energy efficiency, the use of
renewable energy sources and the rational use of energy, the Romanian Agency for Energy
Preservation (ARCE) have developed a new project law, which will be discussed soon in the
Parliament. The law stipulates that incentives and subventions will be offered to physical persons as
well as companies for using thermal energy based on renewable sources. These new regulations will
follow projects aimed to obtain thermal energy out of renewable sources such as geothermal, biomass
and solar. Particularly for new solar installations, the state budget will support up to a half of the total
price of the solar installations, for housing sector and public buildings. For small and medium
companies, tourism and production companies the state budget will cover up to 30% of the price. Also
VAT tax is planned to be reduced from 19%, the general percent, to 9,5% for all the equipments that
generates thermal energy from all renewable sources. Special loans are planned to be offered to
physical persons as well as to small companies for purchasing such equipments.

d) The district heating system

In recent years, the thermal heating systems have undergone major changes. Thus, until the years 2002-
2003, the majority of the combined heat and power plants (CHP) were state-owned (one company) and
local departments controlled by the municipalities managed the heat distribution systems. After 2003,
the ownerchip of the CHPs were decentralised and this process has created conditions for merging
heating production and distribution activities. In June 2004 the “National Strategy for the Distribution
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of Thermal Energy to Consumers by means of Centralised Systems of Production and Distribution”
was finalised and approved [Euroheat & Power, 2005]. “COGEN Romania” has played an important
role in drawing up and seconding this strategy, which promotes the modern concepts of CHP/district
heating (DH) development and efficiency.

In February 2003, 25 members founded the national association “COGEN Romania”. Currently, the
association has 30 members, which are mainly thermal energy production and distribution units in 30
large cities in Romania. [Euroheat & Power, 2005]

The main concern during this period has been to stop household customers from disconnecting from
the DH networks. Many households have decided to disconnect from the centralised DH systems due to
the increasing price of fuel and consequently of the supplied heat, the poor status of the entire heat
distribution systems, together with the lack of measurement of individual heat consumption and lack of
transparency in heat cost allocation by the heat distribution company. Instead of the DH heat, they buy
individual gas boilers for only one apartment. Of the total number of 2,696,000 flats initially connected
to the central heating/DH systems, 581,000 flats have been disconnected during the last 4 years. The
majority of the disconnected flats were in small communities without CHP plants in the network but
only boilers. The rate of disconnection in cities supplied by CHP/DH systems was between 3 and 18%
of the total number of flats in the respective community. Unfortunately, most of the small heating units
operating in towns with 2,000 to 20,000 inhabitants were closed down in 2003 and 2004 – before the
investment programme for rehabilitation could be applied. Out of the 184 DH systems operating in
2002, more than 40 have been closed down in 2003 and 2004. [Euroheat & Power, 2005]

The DH production and demand have dropped dramatically during recent years: The demand in the
residential sector has dropped from 24.65 TWh in 2000 to 15.83 TWh in 2003. Many district heating
systems have already taken measures to increase efficiency by reducing losses and production costs.
Old equipment has been renovated, updated or replaced with equipment with higher efficiency
[Euroheat & Power, 2005]. Many DH companies have installed meters in the substations/boiler houses
and at the level of the stairs of the blocks of flats, while others are more reluctant to do this as it makes
the distribution losses more visible. Without metering a portion of these losses can be billed to the
customers. The district heating sector mainly supplies heating to urban areas. The DH system in
Romania needs major renovations. The Ministry of Administration and Interior is starting a program to
support the DH systems.

Ownership

There are three types of district heating operators:

1. Public autonomous utility (district heating utility or public integrated utility with district heating
activities)

2. Trade company (mainly public, either joint stock or ltd.)

3. Specialised department of the Local Council (municipality).

The most widespread organization form is the public utility.

For most of the large plants more than 70% of production costs are fuel costs, salaries and depreciation.
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For 60% of the large power plants fuel costs represents more than half of the operational production
costs.

Legislative framework

District heating is considered to be a local public service under the provision of the Local Public
Administration Law. “The National Strategy Regarding the Supply of Thermal Energy to Households
by Centralised Production and Distribution Systems (DH)” defines the directions to be followed by the
public services.
A social program can provide groups with lower income with a check to cover heating expenses.
The legislation making it compulsory to meter each building apartment in Romania is far from being
implemented.
The Energy Efficiency Law issued in 2000 foresees obligations and provides incentives for energy
producers and consumers to improve energy efficiency and to promote new sources of energy.
Government Resolution No. 163/2004 approved the “Energy Efficiency National Strategy”. The
strategy’s main target is to identify possibilities and tools for increasing energy efficiency in the entire
supply chain.
“The National Strategy regarding the Supply of Thermal Energy to Households by Centralised
Production and Distribution Systems” creates the legal framework for the rehabilitation of buildings in
order to reduce consumption (losses).

e) Residential sector organisation

The residential sector in Romania has been privatized and homeowner associations have been
established.
These play a role in interactions with energy supply companies, e.g. regarding payment for electricity
consumption in common areas and when deciding on maintenance of leaking roofs.
Since the homeowner associations are established as legal entities with members/owners, they also
have the power to decide on common projects and force members to pay their share of costs. The
decision making process is described in the statutes of the different associations, but as a default a
decision will require simple vote majority to be legally binding. It must, however, be recommended
that a decision on energy retrofitting of a block is supported by a vast majority of the owners, as this
will reduce later non-payment problems. Many of the flat owners are pensioners (sometimes 60%),
who have worked their whole life to achieve their flat, and they are not going to risk anything. Their
flat is their life dream. In most cases the flat was given to them after the fall of communism, and they
do not want to move, not even a block away. So, they own their flats, but there is not really a market,
because nobody sells their flat. If younger people live in the block of flats, it is because they have
inherited the flat. However, there exists a program for younger people, where they can buy a flat. Over
a period of time, they put the rent money into an account to be able to pay the deposit for the flat. As a
rule, there is one association for each block of flats.
Romania started programs to revitalize the housing sector and help provide affordable housing. Private
does not necessarily mean market, and the key question is how market mechanisms are introduced as a
dominant integrating mechanism. In the area of water and heating etc. it was not possible to introduce
market mechanisms (price liberalization, enforcement) because of the risk of social conflicts [Hegedüs,
2004]. Two main stakeholders in the Romanian residential sector are the Owners Associations League
“HABITAT” and the Romanian Federation of Owners Associations. The majority of the population
owns their flat. None of them have been involved in solar thermal campaigns or programmes in the
past, nor in present.
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                       2.3.3 Other sectors to be considered

The sectors to be considered are the one with clear and monthly permanent hot water needs.

Other sectors to be potentially concerned by collective solar thermal installations are:

   •   Health (hospitals, clinics and dispensaries, retirement homes…)
   •   Sport (dressing room showers in stadiums and gymnasiums, public swimming pools…)
   •   Education (boarding schools, canteens…)
   •   Industry (laundries, fruit and vegetable processing, car cleaning…)
   •   Other public buildings (army barracks…)


                       2.3.4 Domestic hot water needs evolution by sector

       It will be necessary to have predictions and estimations for each sector, scenarios of domestic
hot water needs according to the national evolution for each sector for the next 10 years, to have the
base for global financial requirements to be tailored in connection with national strategy and objectives.
        Factors such as unsatisfied hot water needs (when existing) or some other problems regarding
the water parameters (e.g. low pressure, dirty water) when the hot water comes from the district facility
will be analyzed from an economic as well as technical point of view.
          For domestic system ensuring the needs of hot water is assumed that the necessary volume of
hot water per day for one person is around 60 liters with temperature 45oC. In accordance with the type
of the used collector this is achieved with 1 to 2 m2 of collector surface. When it concerns big systems
like hotels, restaurants and others, calculations are made evaluating more factors like coefficient of
filling in, season and etc. With the choice of a system and components, the geographical region is taken
into account; whether the system will be used all the year around (the utilization of vacuum tube
collectors is recommended).
          The monthly savings depend on the quantity of hot water, which will be used, the volume of
 the boiler and the price of the conventional energy, which is used for additional heating of the water.
         A well-designed system should ensure between 50% and 85% solar contribution, a percentage
 that represents savings from the traditional bill.
          Solar water heating systems are always installed with an additional source of heating, usually
 gas, but it could be also electric. It supplies hot water in case of exhaustion, a bad day, so that there is
 always water in the boiler ready to use. In any case, for optional utilization of the solar system and for
 more savings, the consumption of hot water should be evenly distributed in the days of the week. This
 would decrease the utilization of a source for additional heating.




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       3. Identification of economic and financial requirements for a wide
       dissemination of the GSR concept
               3.1. The institutions

The Romanian cabinet is consisted of following ministries and agencies:
Ministry of Foreign Affairs
Ministry of European Integration
Ministry of Public Finance
Ministry of Justice
Ministry of Defense
Ministry of Administration and Interior
Ministry of Labor, Social Solidarity and Family
Ministry of Economy and Commerce
Ministry of Agriculture, Forests and Rural Development
Ministry of Transport, Constructions and Tourism
Ministry of Education and Research
Ministry of Culture and Religious Affairs
Ministry of Public Health
Ministry of Communications and Information Technology
Ministry of Environment and Waters Management
Ministries more closely related to Renewable Energy in general and solar thermal utilization in
particular in Romania are:
Ministry of Economy and Finaces
Calea Victoriei, nr 152, sector 1, cod 010096 www.minind.ro
 Ministry of Environment and Waters Management
Bd. Libertatii nr. 12, Sector 5 Bucharest Romania www.mmediu.ro

                      3.1.1 Energy tariffs

Two national authorities regulate the electricity and heat sector prices in Romania:

1.   The Romanian Electricity and Heat Regulation Authority is a public institution overseen by the
     Ministry of Economy and Commerce. It was set up in order to create and implement an appropriate
     regulation system, to ensure that electricity and heating are produced properly in terms of
     efficiency, competition, transparency, and consumer protection

2    The National Regulation Authority of Public Services and Husbandry (ANRSC) was set up in
     order to ensure the legal framework for public services, including district heating systems owned
     by local authorities.




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                      3.1.2 Main agencies

The main energy agencies acting in the electrical energy sector:

CN Transelectrica SA which has the Technical Directorate of the National Electroenergetic System
(SEN) and the transportation of electrical energy. The company’s aim is to provide a maximum
security and stable functioning for SEN.

SC Electrica SA, the biggest distributor and supplier of electrical energy from Romania. It has 8.5
million consumers, 7.9 million are private homes. www.electrica.ro

SC Termoelectrica SA the biggest electric energy producer, based on fossil fuels. Nowadays it has
5515 MW installed power. It currently produces 66% from the total amount of electric energy in
Romania. www.termoelectrica.ro

SC Hidroelectrica SA is the energy supplier in the hydro domain. It produces 29% of the total amount
of energy in the country. www.hidroelectrica.ro

SN Nuclearelectrica SA is the third most important producer in Romania, with an installed power of
706 MW in a single CANDU Type Reactor (Uranium and heavy water).
SN Nuclearelectrica SA includes the following branches
   - CNE PROD, which exploits the unit 1;
   - CNE INVEST, having as main task the finalization of Unit 2;
   - FCN-Pitesti, the nuclear fuel factory, qualified producer for the nuclear fuel of CANDU 6 type,
       which ensures the functioning of Cernavoda NPP.
   The Unit 1 supplies about 10% of the Romanian energy power consumption, thus avoiding annual
imports of about 1.4 million tones of fuel and saving about 110 million US$ annually.
   The finalization of Unit 2 with an installed power of 706 MW from Cernavoda NPP is settled for
2007.
   The project of Unit 3 Cernavoda is going to be achieved by a joint-venture company between SNN
Nuclearelectrica and private investors (company corporate on the 31/90 law base, concerning
commercial companies) in which SNN will be a minority investor.
SN Nuclearelectrica SA contact data: Str. Polona 65, sector 1 Bucharest www.nuclearelectrica.ro

Companies of energy transport, distribution and supply

SC Transelectrica SA is the System and Transport Operator of the National Electro Energetic System.
The company operates according to the provisions of the system and transport operator licenses
according to the Transport Network Code.
CN Transelectrica SA is one of the country’s strategic companies, holding the role of technical
manager position in the National Energetic System, which provides a stable and reliable infrastructure
for the development of the internal energy market.
The objective of the Company is to ensure the access of the third parties to the transport power net in a
regulated and no discriminating manner and the operation of the National Energetic System in safety,
security and efficiency conditions, at a reasonable cost and with a limited environmental impact at
European standards.
The National Energetic System is connected, through the transport networks, to the electro energetic
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systems of the west European countries.
The energy transport network currently includes 76 electric stations, out of which, 26 operate at 400 kV
voltages, 49 at 220 kV and one station at 750 kV.
Within these stations, 131 high-power transformers and autotransformers operate, with voltages of 750,
400 and 220 kV, amounting about 8.795 km, of which: 155 kV of 750 kV, 4471 of 400 kV, 4131 km of
220 kV and 38 km of 110 kV (lines of interconnection).
In a first stage, there are envisaged to be achieved the following main projects:
    - building of 400 kV power station Nadab-Arad;
    - rehabilitation and modernization of 200 kV power station Paroseni;
    - modernization of 400 kV power station Mintia;
    - transition to 400 kV of the Gutinas-Suceava axis (Bacau Sud, Roman Nord and Suceava
         stations).
SC Transelectrica SA contact data: Bd. Magheru 33, bucharest www.transelectrica.ro

Following a Governmental Decision, the Commercial Operator SC OPCOM SA was founded as an
entity with legal personality, CN Transelectrica SA being it’s unique shareholder.


               3.2 Standards and regulations

Standards:

    Standard SR 1907-1/1997 - related to the theoretical heat demand for heating installations. The
document establishes 4 climatic zones for the Romanian territory, differentiated by the theoretical
outdoor temperature (zone I: -120C, zone II: -150C, zone III: -180C, zone IV: -210C), and 4 wind areas
differentiated by the theoretical wind speed (zone I: 8 m/s in cities and 10 m/s outside cities to zone IV:
4 m/s).

   Standard SR 1907-2/1997 relating to the theoretical indoor temperatures for heating installations.
The conventional indoor temperatures used for calculations are differentiated by the building category
and the room destination.

   Standard SR 4839-1997 relating to the annual number of degrees-day for the heating installations.
   The standard establishes for several localities parameters like:
     - average monthy temperatures
     - average yearly tempetarture
     - altitude
     - conventional period for heating

Following the GD 29/2000, several specialized design institutes (INCERC, IPCT, UAUIM) built a
significant number of technical norms. As example we mention the following:

   Order no. 550/2003 approving the Technical regulations “Guide to the authorization of energy
   auditors for buildings and the related installations”

   Norm I 13-2000 for the design and execution of the central heating installations.

   Norm C 107 relating to the thermal protection of buildings. It is a set of norms relating to the
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EAST – GSR Project                                WP2 – Romanian market situation & GSR Potential



calculation of the global coefficients of thermal insulation for buildings, the thermo-technical
calculation of the construction elements of the buildings, to which guidelines and instructions relating
to the assessment of the level of comfort and design of dwellings are added.

    Guide GP 039-99 for the calculation of annual heat demand for the residential buildings.
The calculation of the annual heat demand for residential buildings takes into account a series of
characteristics such as: the type of the heat source, the regime of heat supply; influence of solar
radiation, indoor energy inputs, active mass of the building construction elements, etc.

   Framework solutions SC 002-1998 relating to metering of water, natural gas, and heat
consumption of the installations in the blocks of flats. The technical regulation applies to the
heating, sanitary and natural gas installations in the new or existing blocks of flats.

   Norm 048/2000 and 047/2000 on energy audits to buildings and heating and hot water systems in
   buildings

   Norm 049/2000 on how to elaborate the energy certificate of buildings

   Framework solutions SC 006-2001 relating to the rehabilitation and modernization of heating
   systems in residential buildings.

   Framework solutions SC 002-1998 relating to the rehabilitation of thermal envelopes of existing
   buildings

   Methodology MP 017–02 to license the auditors for energy audits of buildings.

To mention that the Guide I 42-1985 for building and operation of solar thermal panels was elaborated
20 years ago, but most of its content is not topical any more.


               3.3 Economic analysis in housing and hotel sectors


The interest rates for real estate investments in Romania are between 6% and 10%. It depends on lots
of factors, such as: renting period; fixed or floating; the creditability, etc.
The expected pay back periods for housings are different in different districts of Romania and very
much depends on the state and the rate of development of the local economy.

For the hotels in Romania the pay back period is from 12 to 20 years. It depends very much on the
duration of active tourist season and the hotel location.



               3.4 Taxes and customs duty

Solar systems made in the EU are not taxed. Installations not coming from the European Union are
taxed at 12, 7%.

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               3.5 Energy prices

Progress is slow in the energy sector reform and tariff policies are flawed. Although direct subsidies
from the central budget have already been abolished, the existing methodologies for calculating energy
prices by traditional producers do not fully account (or do not account at all) for certain expenses. The
government needs to develop a policy, which can manage the affordability issue for lower-income
groups. Increasing end-use efficiency, which has a long-term social impact by reducing the cost of
public services, will help in this matter.

Industrial user electricity prices have increased by 91% over the last four years, and are now slightly
above the EU-15 and EU-25 averages. Industrial user gas prices have risen by 120% in the same
period, but remain about 39% lower than the averages for the EU-15 and EU-25.

Electricity and gas prices for industrial users are lower in absolute terms than for households.
The evolution of the electricity and natural gas industrial prices are presented in figure.




                        Fig 14 Average electricity prices for one kWh
                                    Source: EUROSTAT (epp.eurostat.ec.europa.eu)




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                     Fig 15 Average natural gas prices for one Gigajoule
                                    Source: EUROSTAT (epp.eurostat.ec.europa.eu)


               3.6 Incentives and funding

Currently there are no incentives and fundings, nor loans or other forms of alleviations. There are only
in the form of law proposals.


               3.7 Improvement margins

It is clear that each upgrading has a cost. The problem to be solved is on one side to increase quality
and services and on the other side to reduce price. A cost benefit analysis will be made in order to
allow a scale up effect and the GSR benefit will have to be demonstrated.


The following recommendations could be made:

           -   With the existing buildings – analysis and optimization of the heating flows of domestic
               hot water;
           -   With new buildings – optimal integration of the system within the architectural and
               construction plan and the hot water plan:
           -   Application of the European Standards and Certification procedures.




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EAST – GSR Project                               WP2 – Romanian market situation & GSR Potential




The utilization of Solar Thermal Installations has positive impacts as:

           -   Clean energy generation, which contributes to the environmental protection;
           -   Positive socio – economic impact on socially weak groups from the population;
           -   Financial support (reduces the quantities of bought imported energy resources) to the
               social housing;
           -   From national point of view, local energy potentials are utilized and the energy
               independency is increased, new job opportunities are offered, pollution to the
               environment is reduced and most importantly, the attitude of people toward the
               utilization of energy and especially RES is changed.


       4. Conclusion – Requirement for a successful implementation of the GSR contract


On the Romanian market there are present several known manufacturers, offering the needed solar
thermal equipment. The offered equipment displays a quite large variety regarding the technology,
quality and prices.

One of the most relevant market potential for solar thermal use in Romania is represented by the hotels
on the Black Sea littoral, the Southern part of it. Here, solar thermal use for hot water is a viable
alternative for the existing systems fuelled mainly by oil.

The study performed a global approach on a package of 125 hotels, as potential solar thermal systems
users.

For the moment the solar thermal systems market is in the incipient phase, due to:
- low prices on Romanian energy market for conventional fuels
- no incentives
For hotels on littoral, the economics are further worsened by:
- seasonal use: only 5 month/year
- non-uniform consumption demand, according the rate of occupancy

Solar thermal systems may compete only versus obsolete, low efficiency, oil fueled boilers, as it is the
case on the hotels on the South of the littoral. At the same time, the solar thermal technology is not
sufficiently known by these potential users. Promotion of some advanced and successful applications
will bring to a quite explosive market opening on the littoral hotels.

The solar thermal use in the littoral hotels may contribute to around 5% to fulfill the target mentioned
by the Governmental strategy on renewables use: 7,34 ktoe solar thermal output by the year 2010.




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Annex 1.1 Romanian relief




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Annex 1.2 Demografic data




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Annex 1.3 Structure of population by area




Annex 1.4 Structure of population by sex




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Annex 1.5 Live-birth rate, mortality and natural increase




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Annex 1.6 Dwelling stock




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Annex 1.7 Finished dwellings by financing sources




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Annex 2.1 Final energy demand by energy form




Annex 2.2 Decentralization of the Romanian main Electricity Company




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Annex 2.3




Annex 2.4




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Annex 2.5




Annex 2.6




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Annex 2.7




Annex 2.8




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Annex 2.9




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Annex 2.10




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Annex 2.11




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Annex 2.12




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Annex 2.13 Power Grid Map




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          SC OVM-ICCPET SA
Annex 3.1 Distributors of thermal solar systems

                                             Market
 Name                           Size         share         City             Tel/fax, email, web                        Contact person
 AEMAC                          small        small         Brasov           www.aemac.rdsbv.ro
 ALFA BIT                       medium       medium        Bucuresti        www.alfabit.ro                             Ion Afendulis
 Bio Invest SRL                 small        small         Timisoara        00 40 742947353                            Tapu Radu Victor
                                                           Campulung
 Boca Comp                      small        small         Muscel           00 40 248 511113
 Cabinet de Proprietate
 Industriala SI                 small        medium        Timisoara                                                   Sovar Ioan
 CESA AUTOMATIC                 small        small         Bucuresti        http://www.cesaautomatic.go.ro
 CORINA-GEALAN SRL              large        important     Bucuresti        www.instalatiisolare.ro                    Marin Crutescu
 DAC INSTAL                     small        small         Bucuresti        www.termosolare.ro                         Dan Brancus Ignat
 Earth Friends NGO              medium       medium        Galati           earthfriends@rdslink.ro
 Ecopower                       small        small         Constanta        00 40 241582248
 Entreprise                     small        small         Bucuresti        00 40 21 2109814
 Eolidi                         small        small         Bucuresti        eolidi@yahoo.com
 ESPE ENERGIA S.R.L.            small        medium        Timisoara        www.espe-energia.ro                        Roberto Meneghetti
 Eurotherm                      medium       medium        Bucuresti        http://www.eurotherm.ro

 FINEX                          small        medium        Brasov           www.finex-energy.ro                        Nicolae Mugea
 FOLEX                          medium       medium        Aiud             www.folex.ro                               Laurentiu Breazu
                                                                            00 40 256
 FOLEX                          small        medium        Timisoara        475961;0742030662;0748134951               Sebastian-Mihai Iancu
 GERMAN TECH SRL                small        small         Bucuresti        http://www.sistemesolare.ro
 Gimex 92                       small        small         Bucuresti        http://www.gimex92.ro                      Constantin Geangos
 H.I.T. ROM GmbH                small        small         Bucuresti        www.buderus.ro
 HTC                            medium       medium        Bucuresti        http://www.vaillant.ro
 IAICA Alexandria               medium       important     Alexandria       http://www.iaica-alexandria.ro             Alexandru Stan
 MADI SERVICE SRL               medium       medium        Constanta        00 40 241 520551                           Marian Vilsan
 MANGUS SRL                     small        small         Bucuresti        www.mangus.ro                              Augustin Ofiteru

The sole responsibility for the content of this publication lies with the authors. It does not necessarily reflect the opinion of the European Communities. The European
Commission is not responsible for any use that may be made of the information contained therein.
EAST – GSR Project                           WP2 – Romanian market situation & GSR Potential

Mithos International SRL   medium   medium    Bucuresti    energy@mithos.ro mithos@mithos.ro   George Petrosel   Honoriu Pitaru
MONSSON ALMA               small    small     Constanta    www.solaria.ro                      Muntamarc
MSTC                       medium   medium    Bucuresti    www.solar.as.ro                     Mircea Popescu
Multiservice               small    small     Bucuresti    http://www.sismultiservice.ro




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            SC OVM-ICCPET SA
Annex 3.2 Installers of thermal systems including solar

  no           Company                      Address                                              Contact
            A&G Roterm SRL          Strada Atelierelor 31,
  1                                                                                        +40(241)520975
              Constanta                    Constanta.
                                  Strada 1 Decembrie 1918
  2        Ada SRL Braila                                                                  +40(239)606059
                                   nr.108, Braila, 810075.
           Adri-Instal SRL          Strada Ardealului 10,
  3                                                                                        +40(255)516468
              Caransebes             Caransebes, 325400.
           Almaclima SRL        Bulevardul Aurel Vlaicu 52,
  4                                                                                        +40(241)585188
               Constanta                   Constanta.
                                Bulevardul Regina Elisabeta
           Alpem Exim SRL
  5                             23, Bl.A, Sc.A, Et.1, Ap.15,                               +40(21)3121727
               Bucuresti
                                     Bucuresti 5, 050012.
           Alticon Company       Bulevardul Petrochimistilor
  6                                                                                        +40(248)255016
                 Pitesti         Bl.B 21, Sc.E, Ap.4, Pitesti.
          Amadora SRL Baia          Bulevardul Traian 29 -
  7                                                                                        +40(262)217143
                 Mare                pct.lucru, Baia Mare.
         Amber Technologies     Bulevardul Mircea Eliade 18,
  8                                                                                        +40(21)3101010
            SRL Bucuresti         Et.8, Bucuresti 1, 012015.
             Ammibo SRL        Strada C-tin Brancoveanu 52A,
  9                                                                                        +40(256)453200
               Timisoara                   Timisoara.
         Ancon Compact SRL       Strada Sf.Vineri 34, Pitesti,
  10                                                                                       +40(248)636687
                 Pitesti                    110024.
          Andal Confort SRL     Bulevardul Republicii 40/11,
  11                                                                                       +40(234)312653
                 Onesti                 Onesti, 600300.
                                 Strada Voievod Ipsilanti 8,
  12     Antra SRL Bucuresti                                                               +40(21)2428072
                                      Bucuresti, 023495.
                                  Strada 1 Decembrie nr.22,
  13     Aquaserv SRL Barlad                                                               +40(235)411306
                                            Barlad.
         Argetim Group SRL     Strada Eroilor 21 A, Curtea de
  14                                                                                       +40(248)724009
           Curtea de Arges              Arges, 115300.
        Arix Impex SRL Sfantu   Strada Lunca Oltului, Sfantu
  15                                                                                       +40(267)326517
               Gheorghe               Gheorghe, 520036.
         As International SRL    Cartier Lapus-Arges Bl.77,
  16                                                                                       +40(251)437192
                Craiova           Ap.1-3, Craiova, 200458.
        Ascomi Trade Company    Bulevardul Timisoara 104 E,
  17                                                                                       +40(21)3350299
            SRL Bucuresti            Bucuresti 6, 061334.
          Atlantic Impex SRL      Strada Tompa László 36,
  18                                                                                       +40(266)217931
          Odorheiu Secuiesc     Odorheiu Secuiesc, 535600.
                               Calea Crangasi 23, Bl.13, Sc.2,
  19    B.T.D. Group Bucuresti                                                             +40(21)6373836
                                Ap.32, Bucuresti 6, 060333.

The sole responsibility for the content of this publication lies with the authors. It does not necessarily reflect the opinion of the
European Communities. The European Commission is not responsible for any use that may be made of the information
contained therein.
EAST – GSR Project                          WP2 – Romanian market situation & GSR Potential

      Basbo Grup Sport SRL      Strada Siderurgistilor Bl.D2,
 20                                                               +40(236)328660
             Galati                        Galati.
                                 Strada Crinului 95 (colt cu
 21   Bavaria SRL Constanta       Baba Novac), Constanta,         +40(241)606155
                                          900338.
        Bazil SRL Sighetu       Strada Primaverii 16, Sighetu
 22                                                               +40(262)317218
            Marmatiei                Marmatiei, 435500.
        Beretta Instal SRL
 23                             Calea Galati 6, Braila, 810023.   +40(239)624369
               Braila
      Beretta Instal-Serv SRL       Strada Ardealului 10,
 24                                                               +40(255)516468
            Caransebes               Caransebes, 325400.
                                Strada Popa Sapca 1, Brasov,
 25    Bicapex SRL Brasov                                         +40(268)316686
                                            500327.
          Bifa-Inst SRL             Strada Gál Sándor 16,
 26                                                               +40(266)313758
         Miercurea-Ciuc           Miercurea-Ciuc, 530210.
        Big Blue SRL Gura          Strada 9 Mai nr.4, Gura
 27                                                               +40(230)565099
            Humorului                Humorului, 725300.
                                  Strada Mihai Viteazul 37,
 28     Biro Therm Reghin                                         +40(265)521525
                                       Reghin, 545300.
                                Bulevardul Dorobantilor 621,
 29     Bitnet SRL Braila                                         +40(239)610957
                                 Bl.1, parter, Braila, 810067.
        Black Sea Suppliers        Strada Ursului 21, Arad,
 30                                                               +40(257)271052
            SRL Arad                        310368.
        Black Sea Suppliers       Strada Tolstoi 12, Bacau,
 31                                                               +40(234)516742
            SRL Bacau                       600093.
        Black Sea Suppliers
                                 Calea Cernetiului 8, Drobeta
 32    SRL Drobeta Turnu-                                         +40(252)323811
                                       Turnu-Severin.
              Severin
         Bobo SRL Sfantu          Strada Podului 12, Sfantu
 33                                                               +40(267)316629
             Gheorghe                Gheorghe, 520013.
                                   Strada Progresul 30-40,
 34    Calor SRL Bucuresti                                        +40(21)4114444
                                          Bucuresti.
                                Strada Mihai Viteazul 1, Dej,
 35     Campan SNC Dej                                            +40(264)212435
                                            405200.
                                Strada Tudor Vladimirescu 42
        Carmis Impex SRL
 36                                bis, Bl.400, Alexandria,       +40(247)314556
           Alexandria
                                            140035.
                                Strada Primaverii 9A, Lugoj,
 37   Casa Therm SRL Lugoj                                        +40(255)219086
                                            305500.
         Celtia Prest SRL
 38                              Strada Nucului 35, Reghin.       +40(265)511806
              Reghin
         Ciborg Com SRL         Strada Secariei 74, Comarnic,
 39                                                               +40(244)360206
            Comarnic                       105700.
                                Strada Al.I.Cuza 7, Bucuresti
 40   Climatec SRL Bucuresti                                      +40(21)6507953
                                              1.
 41      Climaterm 2000         Strada Lugoj 25, Bucuresti 1,     +40(21)2221297
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            Bucuresti                    014607.
      Divastal SRL Ramnicu     Strada Poenari 40, Ramnicu
 42                                                           +40(250)711051
              Valcea                      Valcea.
                               Bulevardul Aurel Vlaicu 92,
 43   Domelec SRL Constanta                                   +40(241)581952
                               Bl.AV 21, parter, Constanta.
        Eco Industrial SRL     Strada Prelungirea Ghencea
 44                                                           +40(21)4132017
             Bucuresti               95H, Bucuresti.
                               Strada Gh.Doja 153, Bl.B4,
 45   Eltex Com SRL Ploiesti                                  +40(244)514209
                                 parter, Ploiesti, 100164.
                                 Strada Lupeni 69, Sibiu,
 46      Filetul SRL Sibiu                                    +40(269)214243
                                          550205.
                                 Strada Alexandru Vaida
      GB-Ganz Romania SRL
 47                             Voievod 2, Bl.TC I, Cluj-     +40(264)419305
          Cluj-Napoca
                                     Napoca, 400592.




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Annex 3.3 Romanian solar radiation map




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Annex 3.4 Romanian solar radiation map




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Annex 4.1 Turistic activity and accomodation capacity

              Regions
                               Number of beds                                   Nett
              Counties
                                                                              usage of
                                                       Arrivals     Nights
                                       In function                            existing
                                                     (thousands)   occupied
                            Existing   (thousands                             capacty
                Year
                             places      places-                                (%)
                                          days)
             South East
                1995        133739      15043.9         1395.4     7733.7        51.4
                2000        134081      12182.3          980.8     5451.9        44.8
                2001        132053      13230.6          994.3      5602         42.3
                2002        130111      13662.5          984.2     5214.2        38.2
                2003        130991      13629.5         1018.7     5153.6      37.8
                2004        130854      13773.6          1133      5397.2      39.2
               Braila
                1995         2404        501.2            72        191.7      38.2
                2000         2395        491.6           64.5       231.5      47.1
                2001         2452        547.2           77.1       297.9      54.4
                2002         2096         573            58.3       256.7      44.8
                2003         1859        521.9           55.5       266.5      51.1
                2004         1752        546.7           59.3       246.2       45
               Buzau
                1995         2540        673.4           80.2       213.3       31.7
                2000         2750        751.2           48.6        145        19.3
                2001         2596        689.5           48.2       130.3       18.9
                2002         2538        682.2           50.2       128.6       18.8
                2003         2653        631.4           61.3       169.7      39351
                2004         1788        625.7           68.2        163         26
             Constanta
                1995        121196      12124.3         1042.9     6859.8      56.6
                2000        122598       9571.7         757.8      4801.9      50.2
                2001        120650      10532.2          745.9     4900.5      46.5
                2002        119466      11149.3          754.2     4582.9      41.1
                2003        119785       11344          788.8      4471.6      39.4
                2004        120226      11263.7          845.5     4675.4      41.5
               Galati
                1995         1967        540.4            77        151.8       28.1
                2000         1385        292.9           43.2       66.7        22.8
                2001         1273        289.7            49        90.3        31.2
                2002         1148        259.5           57.7        100        38.5
                2003         1273        309.3           49.3       98.3       39325
                2004         1375        306.3           57.6       109.5       35.7
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              Tulcea
               1995    3558    730         74.9        167.9        23
               2000    2837   474.2        35.9        108.3       22.8
               2001    2824   543.8        46.5        101.4       18.6
               2002    2604   473.1        36.3        79.7        16.9
               2003    3157   362.7        37.4        75.6       39314
               2004    3551   491.2        73.2        130.6       26.6
             Vrancea
               1995    2074   474.7        48.4        149.3       31.5
               2000    2116   600.7        30.7        98.6        16.4
               2001    2258   628.2        27.6        81.6         13
               2002    2259   525.4        27.5        66.3        12.6
               2003    2264   460.2        26.4        71.9       39248
               2004    2162    540         29.2        72.5        13.4




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Annex 4.2 Tourism sector




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Annex 4.3




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Annex 5.1

                                                                           Coal in Romania in 2004

                   Anth-     Coking     Other        Sub-       Lignite/   Peat      Patent     Coke   Gas       Coal        BKB         Gas       Coke     Blast       Oxygen
                              Coal       Bitu-       Bitu-
                   racite               minous      minous      Brown                Fuel       Oven   Coke      Tar         Peat       Works      Oven    Furnace       Steel
                                                                 Coal
                                         Coal        Coal                                       Coke                       Briquettes   Gas*       Gas*     Gas*        Furnace
                                                                                                                                                                         Gas *
Unit                Kt         kt         kt          kt          kt        kt         kt        kt     kt        kt           kt        TJ         TJ       TJ           TJ
Production               0          0           0          53    31739           0          0   1675         0         0            0          0   11323     26514             0
From Other
Sources                0          0             0        0            0          0          0      0         0         0            0          0       0            0            0
Imports               73       2970             0      419           45          0          0   1297         0         0            0          0       0            0            0
Exports                0          0             0        0            0          0          0    -46         0         0            0          0       0            0            0
Stock Changes         -2        -16             0      -74          392          0          0   -189         0         0            0          0       0            0            0
Domestic
Supply                71       2954             0      398       32176           0          0   2737         0         0            0          0   11323     26514               0
Statistical
Differences              0     -409             0          10       -59          0          0     -7         0         0            0          0      -7       -12               0
Total
Transformation           0     2270             0      401       30472           0          0   2513         0         0            0          0     267      3934               0
Electricity
Plants                   0          0           0        5       19166           0          0      0         0         0            0          0       0         0               0
CHP Plants               0          0           0      386       11206           0          0      0         0         0            0          0     267      3934               0
Heat Plants              0          0           0       10         100           0          0      0         0         0            0          0       0         0               0
Other
Transformation           0     2270             0           0         0          0          0   2513         0         0            0          0      0          0               0
Energy Sector            0        0             0           5       843          0          0      0         0         0            0          0   6053       3659               0
Distribution
Losses                   0          8           0           0         0          0          0     20         0         0            0          0      84      1456               0
Total Final
Consumption           71        267             0           2       802          0          0    197         0         0            0          0   4912      17453               0
Industry              43        267             0           0       600          0          0    197         0         0            0          0   4912      17453               0
Transport              0          0             0           1         0          0          0      0         0         0            0          0      0          0               0
Residential            0          0             0           0       197          0          0      0         0         0            0          0      0          0               0
Commercial and
Public Services          0          0           0           1         3          0          0      0         0         0            0          0       0            0          0
                                                                                                                                                                              95
Agriculture /
Forestry      SC   OVM-ICCPET SA
                      0     0                   0           0         2          0          0      0         0         0            0          0       0            0            0
EAST – GSR Project                           WP2 – Romanian market situation & GSR Potential

Annex 5.2
                             Electricity/Heat in Romania in 2004


                                                   Electricity            Heat
                                                   Unit: GWh            Unit: TJ
                 Production from:
                 - coal                                 21773                30380
                 - oil                                   2199                21958
                 - gas                                  10462                81683
                 - biomass                                  4                 1322
                 - waste                                    0                   53
                 - nuclear                               5548                    0
                 - hydro                                16513
                 - geothermal                               0                   29
                 - solar PV                                 0
                 - solar thermal                            0                 0
                 - other sources                            0                 0
                 Total Production                       56499            135425
                 Imports                                 2584                 0
                 Exports                                -3766                 0
                 Domestic Supply                        55317            135425
                 Statistical Differences                    0                 0
                 Total Transformation*                      0                 0
                 Electricity Plants                                           0
                 Heat Plants                                0
                 Energy Sector**                        10469                17566
                 Distribution Losses                     6073                26302
                 Total Final Consumption                38775                91557
                 Industry                               25258                20054
                 Transport                               1617                    0
                 Residential                             8043                66643
                 Commercial and Public
                 Services                                3586                2556
                 Agriculture / Forestry                   271                1183
                 Fishing                                    0                   0
                 Other Non-Specified                        0                1121

                 * Transformation sector includes electricity used by heat
                 pumps and electricity used by electric boilers.


                 ** Energy Sector also includes own use by plant and electricity
                 used for pumped storage.

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Annex 5.3

                                 Natural Gas in Romania in 2004


               Unit:TJ - on a gross calorific value basis
               Production                                                  482759
               From Other Sources                                               0
               Imports                                                     191269
               Exports                                                          0
               International Marine Bunkers                                     0
               Stock Changes                                               -25664
               Domestic Supply                                             648364
               Transfers                                                        0
               Statistical Differences                                      -2737
               Total Transformation                                        201769
               Electricity Plants                                           39083
               CHP Plants                                                  125540
               Heat Plants                                                  37146
               Petroleum Refineries                                             0
               Other Transformation                                             0
               Energy Sector                                                50881
               Distribution Losses                                          19873
               Total Final Consumption                                     373104
               Industry                                                    190773
               Transport                                                     1143
               Residential                                                 118324
               Commercial and Public Services                               31386
               Agriculture / Forestry                                        1601
               Fishing                                                          0
               Other Non-Specified                                              0
               Non-Energy Use                                               29877
               - of which
               Petrochemical Feedstocks                                     29877




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Annex 5.4

                                                    2004 Energy Balances for Romania
in thousand tonnes of oil equivalent (ktoe) on a net calorific value basis

SUPPLY and  Coal Crude Petroleum                 Gas     Nuclear Hydro Geothermal, Combustibles Electricity Heat           Total
CONSUMPTION
                  Oil  Products                                             Solar, etc.       Renewables

                                                                                              and Waste

Production           5975    5565           0 10374        1446     1420               80           3250         0     0 28110
Imports              3008    7100        1781 4110            0        0                0              0       222     0 16222
Exports               -29       0       -4453     0           0        0                0              0      -324     0 -4806
International           0       0           0     0           0        0                0              0         0     0     0
Marine Bunkers**
Stock Changes         -91    -229         -64  -552           0        0                0            -26         0     0  -961
TPES                 8863   12436       -2736 13933        1446     1420               80           3224      -102     0 38565
Transfers               0       0           0     0           0        0                0              0         0     0     0
Statistical          -418     536        -229   -59           0        0                0            -16         0     0  -185
Differences
Electricity Plants      -       0         -122    -840     -1446   -1420                  0            -1     3432     0   -3904
                     3508
CHP Plants              -       0         -756   -2698         0        0                 0            -1     1427 2381    -1976
                     2329
Heat Plants           -23       0        -143     -798         0        0              -1             -65       0    853    -177
Gas Works               0       0           0        0         0        0               0               0       0      0       0
Petroleum               0       -       13443        0         0        0               0               0       0      0     683
Refineries                  12760
Coal                    -       0            0       0         0        0                 0               0     0      0   -1141
Transformation       1141
Liquefaction            0       0            0       0         0        0                 0               0     0      0       0
Plants
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Other                  0      0       0       0        0       0             0            0      0      0       0
Transformation
Own Use              -375   -139   -1446   -1093       0       0             0           -20   -900   -419   -4393
Distribution          -54    -74     -71    -427       0       0             0             0   -522   -628   -1776
Losses
TFC                  1015     0    7940    8018        0       0            80          3120   3335 2186 25695
Industry sector       960     0    1048    4100        0       0             1           332   2172 479 9091
Transport sector        0     0    4475      25        0       0             0             0    139    0 4639
Non-Energy Use          0     0    1528     642        0       0             0             0      0    0 2171




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Annex 6.1

Responsible contact person

  Organisation name              Oskar von Miller – Conception, Research &
                                 Design Institute for Thermopower Equipment
  Contact person
  Name                           Silviu Maruntelu
  Address                        Calea Rahovei 266-268, Sector 5, Bucharest
  E-mail                         maruntelu@ovm-iccpet.ro
  Phone                          +40 21 405 77 65
  Fax                            +40 21 405 77 77
  Website                        www.ovm-iccpet.ro




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