Τhe Romanian Magazine for Energy

The soluTions of energy efficiency reduce The bill

RecoRd PRoduction of Renewable eneRgycng-PoWered TrAnsPorTATion inVAdes euroPe!

the collaboRation with tuRkey on black Sea iSSue

energy efficiency beTWeen obligATions And economic PoTenTiAl

onshore oil and gas in romania

march-april 2014Nr. 11, Price 10 ron

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Contents

THE BI-MONTHLY ROMANIAN MAGAZINE FOR ENERGY

2nd YEAR, Issue Nr 11 March-April 2014

Publisher TRIM Publications S.R.L.

Managing Director Apostolos Κomnos

Marketing Director Apostolos Κomnos

Art director A.L.L. Designers

Issue Price 10 RON

Editor in Chief Dragos Zaharia

Deputy Editor in Chief Emilia Damian

Editors Ada Gavrilescu Diana Medan Simon Done

PR & Communications Executive Luminița Nițoiu luminita.nitoiu@trimpublications.com

energyworld Magazine TRIM Publications S.R.L. Print & Online Publications Sos Nicolae Titulescu nr. 3 Bloc A1, ap. 62, et. 8, Sector 1 București, CP 011131 Τel.: +40 213 110455

www.energyworld.rowww.trimpublications.comE-mail: info.ro@trimpublications.com

01 EDITORIAL: ThIS yEAR wILL bE MENTIONED IN hISTORy

02 NEwS

03 OIL AND gAS ONShORE IN ROMANIA

04 ThE COLLAbORATION wITh TuRkEy ON bLACk SEA ISSuE

05 CNg-POwERED TRANSPORTATION INVADES EuROPE!

06 ThE SOLuTIONS Of ENERgy EffICIENCy REDuCE ThE bILL

07 RECORD PRODuCTION Of RENEwAbLE ENERgy

08 ENERgy EffICIENCy bETwEEN ObLIgATIONS AND ECONOMIC POTENTIAL

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EditorialBy the publisher

Almost all the news coming from the energy sector are mostly about offshore oil and gas discoveries in the Black Sea. But why do we remenber less about the onshore wells? It is true that they are mature and hard to be exploited, but this is the reason why oil companies invest a lot of money here. We talk abot big amounts, like tend and hundreds thousand euro, to produce the precious black gold. And blue gold, if we want to speak metaforicly also about the natural gas.This is our main subject for this issue. We showed which is the direction companies adopted fot improving their activities in the onshore oil and gas sector.Staying in the field of exploration and production, we cannot forget the visit of the Turkish Energy

minister in Bucharest. Apart from the classical subject of undersea electricity cable, this time our neighbour came to Romania with a new proposal: the two countries to collaborate for exploration and production in the Black Sea. A very good idea.Another very important subject we covered is related with the changes that will be made on the legislation in the oil and gas sector this year. The Energy minister, Constantin Niţă, said that offshore wells and shale gas shoul be trated separately by the law.In our interwiev, meet the new chief executive of Schneider Electric Romania, Florentina Totth. She will tell you that the energy efficiency measures would reduce your energy bill with 30%, even if you are a household consumer, or you own a company.

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News

02Petrom posts 1 bln euro profit

Petrom Group ended last year on RON 4.824 billion in net profit (about 1.091 billion euros), up 22 per cent over 2012, when the net profit was worth RON 3.946 billion, according to preliminary consolidated results of the Petrom Group.In the fourth quarter of the year 2012, the oil company’s net profit reached RON 1.158 billion, up 10 per cent over the net profit recorded in the same interval of the previous year, of RON 1.055 billion.Clean EBIT went down by 4 per cent to RON 5.542 billion, mainly driven by unfavourable FX effects (weaker USD against RON) and higher depreciation expenses. Reported EBIT reached RON 5.529 billion, 1 per cent higher than 2012, due to lower special charges. Group oil, gas and NGL production in 2013 totalled 66.64 million boe, similar to the 2012 level. In Romania, total oil, gas and NGL production increased to 62.5 million boe, 0.26 per cent higher compared to the previous year. Domestic crude oil production was 28.6 million bbl, stable versus 2012 as the projects and workover programs compensated the effects of natural decline. Domestic gas production reached 33.9 million boe, 1 per cent higher compared to 2012. Oil and gas production in Kazakhstan decreased by 9 per cent to 4.1 million boe, as an effect of technical constraints. Group sales volumes were similar to the 2012 level.

The approved and licensed capacities of all renewable energy facilities doubled at the end of 2013, compared with 2012, Zoltan Nagy, member on the Board of the National Energy Regulatory Authority (ANRE), said. He underscored that 2013 was an exceptional year for investors, who built power plants of over 2,000 MW total capacity, most of them photovoltaic.Moreover, the wind-power sector also recorded growth, where the capacities went up 44 percent.‘In 2013, the approved and licensed capacities of renewable energy facilities almost doubled in only one year. It was an exceptional year for investors. They built power plants of over 2,000 MW, most of them photovoltaic. 42 MW were obtained from photovoltaic plants. But the wind-power sector also recorded growth. It exceeds 44 percent,’ Nagy told.According to data with ANRE, the renewable energy production reached a record-high level at the end of last year, when the total capacity of the existing facilities reached 4,255 MW, 82 percent higher than at the end of 2012.Thus, on December 31, 2013, the grid had wind-power facilities installed of a total power of 2,503 MW, photovoltaic facilities of 1,155 MW, biomass facilities, 65 MW, and hydropower facilities, 530 MW.

Renewable have been doubled

Dependent on imports

Denmark is the only country in the European Union (EU) which was a net energy exporter in 2012, but Romania is among the EU countries that are least dependent on energy imports (23 percent), a lower dependence less only registered by Estonia (17 percent), according to data the European Office of Statistics (Eurostat) released on Monday.Between 2006 and 2012, energy consumption decreased in 24 member states (Romania included) and increased only in Estonia (11.6 percent), the Netherlands (2.9 percent), Poland (0.8 percent) and Sweden (0.4 percent). The most significant decreases were registered in Lithuania (17 percent), Portugal (15.2 percent), Greece (14.4 percent), Hungary (14.2 percent), Denmark (13.9 percent) and Romania (12.8 percent).In 2012, the main energy producers in the EU were France (133 million tonnes of oil equivalent, 17 percent of the total EU production), Germany (124 million tonnes of oil equivalent, 16 percent of the total EU production), the United Kingdom (116 million tonnes of oil equivalent, 15 percent of the total EU production), Poland (71 million tonnes of oil equivalent, 9 percent of the EU production) and the Netherlands (65 million tonnes or 8 percent of the EU production). Together, the five states were responsible for 64 percent of the total EU energy production.

5Transelectrica’s profit up five times

Romania’s Transelectrica national electricity transmission system operator ended 2013 on a net profit worth RON 162.29 million (about 36 million euros), up almost five times from 2012, when it reported a RON 34.48 million profit.The earnings before interest and taxes (EBIT) stood at RON 207.8 million, 2.5 times higher than those recorded in 2012.The total earnings obtained in 2013 registered a 11 per cent decline from the previous year, to RON 2.46 billion.On December 31, 2013, Transelectrica was RON 2.59 billion in debt, out of which current debts were standing at RON 985.18 million.The company had total assets worth RON 5.15 billion at the end of 2013, up 4.2 per cent from the previous year.Transelectrica is the electricity transmission system operator in the Romanian energy sector. Shareholders in Transelectrica are the Romanian Government (58.68 per cent), Fondul Proprietatea (13.49 per cent), SIF Oltenia (7.11 per cent) and others (20.70 per cent).

The Government approved three oil exploration, development and exploitation agreements signed by the National Agency for Mineral Resources (ANRM), as grantor, and East West Petroleum Corp., as grantee, following a bid round held in 2010. Meanwhile, Gazprom Neft, through its Serbian division NIS, bought from Canada’s East West Petroleum an 85% interest in each of the three blocks located in western Romania and called Baile Felix (EX - 3), Periam (EX - 7) and Biled (EX - 8). The oil agreements refer to the concession of exploration, development and exploitation activities and came into force upon their publication in the Official Journal on November 22, 2013. The classified Annex was not published, since it contains the investment program agreed upon following negotiations between ANRM and the company.East West Petroleum was awarded the right to explore and exploit these blocks after the last concession bidding round organized by ANRM in summer 2010. Back then ANRM organized an international bidding for the concession of 30 oil blocks, including five Black Sea offshore blocks. In May 2011, the Canadians announced having signed a farm out agreement under which Gazprom Neft, through NIS, was taking over 85% of these blocks.

Romgaz has been exploiting unconventional natural gas deposits without the use of hydraulic fracturing for years now, company deputy general manager Dumitru Rotar.Asked if Romgaz plans to extract shale gas, Rotar said: “Shale gas is a type of unconventional gas deposit. We have been exploiting gas deposits trapped in low-permeability rocks for years now, without using hydraulic fracturing.”He explained that there are various types of unconventional gas deposits, such as shale gas (schist gas - Editor’s note) and tight gas (gas trapped in low-permeability rocks - Editor’s note).“So far, we have exploited tight gas, but without fracking,” the Romgaz official stressed again.Rotar added that Romgaz is preparing to participate in the next round of oil block concessions the National Agency for Mineral Resources (ANRM) will be organizing next year.Until then, the company will continue the development of mature fields as well as the revamping of these blocks, and will also go for deeper drilling.ANRM will put up for tender next year 36 oil blocks, including eight Black Sea offshore blocks.Romgaz is Romania’s largest producer and supplier of natural gas, and according to the National Energy Regulatory Authority (ANRE), last year it accounted for 50.12 percent of the domestic production of natural gas and supplied 41.7 percent of Romania’s natural gas consumption.

Oil exploration approved

Romgaz has not been using fraking

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03Oil and gas OnshOre in rOmania

romania wants to develop its’ onshore oil and gas production, a field that has a tradition of over one hundred and fifty years in this country, as it was the first state in the world to extract oil in 1857.

ResourcesBy Emilia Damian

7All attention has been directed toward the development of marine oil in recent years, because the extent of the perimeters of these explorations have not been exhausted and the Black Sea can provide huge surprises for companies that are able to invest hundreds of millions of euros in it. However, we should not forget the onshore perimeters of Romanian ground explorations, an area in which Romania has a very old tradition. The first crop of crude oil had been extracted more than 150 years ago, in 1857, in our country, and the first refinery in the world was established in Ploiesti at that time as well. Thus, these onshore blocks are considered mature. Petrom, acquired by Austria’s OMV in 2004 and state company Romgaz are the largest companies that extract oil and gas from onshore blocks in Romania. They hold together over 98% of domestic production. The two companies produce about 11 billion cubic meters of gas per year, and they provide about three quarters of the gas consumption in the entire country. There are other gas producing companies in Romania, like:Lotus Petrol, Foraje Sonde, Amromco

Ploieşti, Amromco New York and Aurelian Oil&Gas.

huge investmentsOMV Petrom will spend 450 million Euros for the redevelopment of mature fields in Romania in the next two years, based on a framework contract which has been granted by public tender. The works will be made by the associated companies SC Strabag SRL - SC Kraftanlagen Romania SRL, that have won two of the three lots that are stipulated in the contract, and by the associated companies SC Habau PPS Pipeline Systems LLC - SC INSPET S. A. - SC JCR CHRISTOF CONSULTING SRL, that have won a lot. The contract covers the onshore constructions related to the redevelopment of the mature projects.According to the Electronic Procurement System, we are talking about „general constructions that have been built in various locations divided into lots, and the coordination of the activities for installations of various equipment and the installation of piping networks, equipment, materials and systems for utilities, in order to ensure the full operation in a safe way.”Petrom plans to redevelop eight onshore fields that have reached maturity. Works have already began on two of them, Oprişăneşti and Videle. The goal of the oil company is the growth of the hydrocarbon production of these deposits, by digging new wells and using new methods for the deployment of additional quantities of hydrocarbons from the mature fields. „OMV Petrom is constantly investing in new technologies and secondary recovery methods to redevelop

mature fields in Romania to improve oil and gas recovery rate and stabilize production levels. In this way we can extend the field’s production life, with positive impact for the long term supply of energy to Romania” ̶ Johann Pleininger, member of OMV Executive Board, responsible for Exploration and Production, said last spring.

extended concessions In turn, Romgaz state-owned company, the most important Romanian producer of natural gas, will invest about 500 million dollars in geological studies in the eight blocks leased from the National Agency for Mineral Resources (ANRM), over the next 5 years. ANRM has prolonged with five years the period of exploration for eight blocks leased by the gas producer.It is estimated that the national gas reserves are able to ensure consumers’ needs for a period of time between ten and seventy years, according to several factors, such as the potential new discoveries – the expert Dumitru Chisăliţă, former General Manager of Romgaz, stated.

„OMV Petrom is constantly investing in new technologies and secondary recovery methods to redevelop mature fields in Romania” - Johann Pleininger, member of OMV Executive Board.

“National gas reserves are estimated to provide consumption for a period between 10 and 70 years “- Dumitru Chisalita, former CEO of ROMGAZ

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04The collaboraTion wiTh Turkey on black Sea iSSue

romania and Turkey could conduct, together, explorations of deposits in the Black Sea − Taner yildiz, Turkish Minister of energy and natural resources, stated during a visit to bucharest.

Black SeaBy Emilia Damian

9It is the first time when a Turkish official comes with this proposal to Bucharest. ,, It is possible that the exploration in the Black Sea will be contucted separately by Romania and Turkey, but it is also possible to work together in this field. It is also possible to work with a third company. We do not know anything concrete yet, because there are two maritime areas, and Romania and Turkey are neighbors. The neighbors have always supported and helped each other. There are many areas where Romania has supported us, but we have also supported Romania“, Taner Yildiz, Turkish Minister of Energy and Natural Resources, said.Turkey explores deposits in the Black Sea and the Mediterranean Sea together with foreign firms in an attempt to reduce its dependence on imports. Turkey still has not found oil during the explorations in the Black Sea.

exxon and Petrom, in Midia perimeterMeanwhile, the existing exploration in the Black Sea are in a process of transformations. ExxonMobil Exploration and Production Romania Ltd and OMV Petrom S.A. became the titleholders for the deep water portion of the Midia maritime area, and Gas Plus retains its 15% interest in this perimeter, after the Government has approved the transfer of the license from the Canadian company Sterling Resources.,,ExxonMobil Exploration and Production Romania Limited, OMV Petrom S.A. and Gas Plus International B.V. announced that, following the Romanian Government Decision no. 43 dated January 22,

2014 and published in the Official Gazette on January 28, 2014, the Transfer Agreement signed in October 2012 between ExxonMobil and OMV Petrom, and Sterling Resources Ltd. and Petro Ventures Europe B.V. for the purchase of hydrocarbon exploration and production rights to the deep water perimeter of the XV Midia block (“Midia Deep”) became effective. Gas Plus opted to retain its 15% interest in both deep water and shallow water portions of the XV Midia block” − it is shown in a joint statement of the companies.

exxon, the operator in the deep waterFollowing completion of the Transfer Agreement, the participating interests in Midia Deep perimeter are: ExxonMobil 42.5%, OMV Petrom 42.5%, and Gas Plus 15%.Based on terms agreed in February 2013, Romgaz SA has an option to purchase a 10% participating interest in the deep water area of

the XV Midia perimeter. Romgaz’s option to enter will be triggered by an announcement of a commercial discovery on deep water area of the Midia perimeter.ExxonMobil will be the operator of petroleum exploitations in the deep water perimeter of the Midia block, which is adjacent to the Neptun Deep block, an area where ExxonMobil and OMV Petrom announced a gas discovery in 2012.Exxon and Petrom have identified possible deposits between 42 and 84 billion cubic meters of gas in Neptun perimeter, which would cover the country’s domestic consumption for six years, and the two companies will dig a second well this year.

lukoil and romgaz start the explorationsRomgaz officials have also said that they will dig two exploration wells next year in Trident and Rhapsody oil perimeters of The Black Sea, together with Lukoil – Radu Gheorghe, Business Development Division Manager at Romgaz, stated at the fifth edition of the Energy Business Summit, organized by Media Consulting. ,,The Black Sea has a great potential of resources, mostly gas. Romgaz has 10% of Rhapsody and Trident blocks (operated by Lukoil – ed. n.) and we will drill one well in each block next year, according to the minimal programs undertaken by Lukoil”, Gheorghe said.

„Romanian companies are not at all less developed than other companies in the region and in Europe. We have the necessary resources and we have the specialists. I do not see why we can not compete with any other company” – Constantin Nita, Minister-delegate for Energy.

Taner Yildiz, Turkish Minister of Energy and Natural Resources

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05CNG-POWEREDTRANSPORTATION INVADES EUROPE!The buzz on alternatives to gasoline, related to transportation, usually focuses on electrics, hybrids or ethanol. But DEPA, the Public Gas Corporation SA, is quietly pushing another alternative: Compressed Natural Gas (CNG) as fuel for private vehicles as well as for public means of transportation in Greece.

Compressed Natural Gas

11Like other alternative fuels, CNG has its specific characteristics. Compared with gasoline, it has much cleaner emissions while providing similar fuel economy, performance and drivability. Its relative energy cost can be about half that of gasoline, and it is mostly a domestically produced energy source, thus contributing to reducing the reliance on foreign oil.

Some historical factsNatural gas has been used as a motor vehicle fuel since the 1930s. In fact, Chrysler, Ford, and General Motors once offered passenger vehicles fueled by CNG, sold primarily to fleets. But with the increased focus on electricity, ethanol and other alternative fuels, fewer and fewer CNG-powered passenger vehicles have been offered in recent years. In particular, budget-constrained domestic automakers withdrew from this niche due to slow sales, financial challenges, and limited refueling stations. Shoppers were left to choose only from Honda and a handful of aftermarket conversion companies, along with used fleet cars. This is a trend that is about to change, with several automakers looking to offer CNG vehicles, notably trucks aimed at commercial users.

Τhe benefits of CNGThe benefits of natural gas use, both environmental and economical, are worldwide positively assessed. According to estimations the gas-powered vehicles on global scale reach 11.5 million, while in Europe over 1.5 million vehicles use natural gas. EU proposes governments to offer incentives for natural gas to be

used as fuel, in order dependence on oil to be reduced, and the environment to be protected.The cost of CNG can be as little as half of the gas if you use a home refueling device. And at commercial stations, the cost is still significantly less than gasoline. Some researches peg the fuel savings at about 30 percent less than gasoline on average.Drivers are not expected to notice a significant difference in performance between a CNG-powered vehicle and one fueled by gasoline. Though acceleration is typically slower, the car starts and drives normally. CNG burns much cleaner than gasoline. According to the Environmental Protection Agency, CNG can reduce carbon-monoxide emissions by 90 to 97 percent and nitrogen-oxide emissions by 35 to 60 percent when compared with gasoline. CNG can also potentially reduce non-methane hydrocarbon emissions by 50 to 75 percent, while producing fewer carcinogenic pollutants and little or no particulate matter.

What about safety?Vehicles powered by natural gas are as safe as conventional gasoline or diesel vehicles, and their pressurized tanks have been designed to withstand severe impact, temperature, and environmental exposure. CNG is lighter than air, so if fuel were to escape in a crash, it would evaporate rather than create a puddle under the car. While the gas is escaping the storage tank, it is highly volatile. But once the gas has evaporated, the fire danger is diminished. In contrast, a gasoline spill remains a danger until the pooled liquid is removed.

DEPA: Natural gas in sustainable transportDEPA has already been developing the necessary infrastructure for the supply of gas-powered vehicles, and today 600 public transportation buses and 102 municipality garbage collection vehicles use natural gas as fuel, in Greece.DEPA has two refueling stations in Attica, in the areas of Anthousa and Ano Liosia. Their capacity reaches 5,000 cubic meters/hour (Nm3/h), ranking them among the largest in Europe. Since September 2010, Anthousa Station supplies Medium-Duty Vehicles (MDVs) and Light-Duty Vehicles (LDVs) of Dual-Fuel or Bi-Fuel technology.DEPA’s future plans for sustainable transport include installing Compressed Natural Gas (CNG) Pumps in Stations of the Athens-Thessaloniki Highway, and in the cities of Larissa and Volos. Furthermore the collaboration with the Municipality of Thessaloniki, in order to promote the use of natural gas for the vehicles in Thessaloniki, was recently sealed by the signing of a Memorandum of Collaboration between the Municipality and DEPA.

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06The soluTions of energy efficiency reduce The billThe economic crisis has spurred the development of the concept of energy efficiency in Romania in recent years, and the best solutions can lower the bills by 30% − florentina Totth, country President schneider electric românia, said in an exclusive interview for energy World magazine.

Interview of Florentina Totth - Country President Schneider Electric RomâniaBy Emilia Damian

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energy World: how did the romanian market react at the implementation of the concept of energy efficiency, in recent years?florentina Totth: The concept of energy efficiency has seen a constant evolution in recent years in Romania, both in terms of its reputation, and the implementation of such solutions. This development was mainly driven by the economic crisis, because both the companies, and the households started to focus on solutions to reduce energy consumption, due to the desire to save money or the need to pay the energy bills. And the energy efficiency is the easiest and the most convenient method to reduce energy consumption, but satisfying the consumer needs at the same time. Thus, the market of equipments and the energy efficiency solutions was stimulated by this awareness of the importance of not paying more than we consume and not consuming more than we need.how important is the energy efficiency for a company? And also for the family budget?f.T.: The energy efficiency should

be on the list of priorities of any company and any family, given that the energy efficiency solutions offered by Schneider Electric allow the reduction of the energy consumption and the related bills by up to 30%. The companies should consider the implementation of energy efficiency solutions as an investment which can be easily amortized and it has great benefits in long term. For example, the reduction of energy consumption in office buildings or in data centers – the areas that are responsible for most of the world consumption – can significantly decrease a company’s costs and it can help to streamline a business. Thus, the pressures related to corporate budget reductions can be reduced by a smart approach of the energy consumption, in the context of the economic crisis and the efforts to overcome it.We can also talk about the critical importance of energy efficiency in the residential sector. We are fighting with the perception that energy efficiency is not accessible, by offering customized solutions, tailored to our customers’ budgets. On the contrary,

each of us can use the energy resources more efficiently , starting from simple measures that everyone can do, such as to turn off the bulb in an empty room, reaching to the purchase of the simple products that can reduce energy consumption, such as the presence sensors or the devices of variable intensity for lights, until the implementation of the complex solutions that can generate greater savings of energy.What will this mean in the coming years, given that the electricity and gas market is being liberalized?f.T.: It is estimated that electricity and gas market liberalization will bring higher prices, which amplifies the need to reduce energy consumption, in order to withstand easier the new bills. This issue will affect both the companies, and the households. Therefore, we expect a higher increase of the concept of energy efficiency and a continuation of the upward trend of sales of such solutions.can you give us some tips for households, such as how to

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reduce their energy bills without turning off the lights?f.T.: One of my tips for households is actually to turn off the lights, of course, when they do not need it. For example, the energy loss is not as obvious as the water loss : If the water flows from the tap when we don’t use it, we hear it and this fact bothers us, and draws our attention to the fact that we have to close the tap. However, we are not disturbed as much by the fact that we have left the light on, in a hall or in a room, after we had gone. Therefore, a first step that we can do is to change our mindset regarding the energy consumption. Also, as I have previously mentioned, I recommend to the consumers to install in their homes some seemingly simple products, which, however, can help to reduce energy consumption: the presence sensors, the devices of variable intensity for lights. The use of such products is based on the same principle of reducing energy losses.Moreover, there are also solutions for energy efficiency and energy

management which can be implemented by the households in order to benefit from the reducing of the energy bills. For example, Schneider Electric has launched this year the KNX preconfigured solution for Smart Homes. This solution is applicable for the apartments with 3-4 rooms and the houses with up to 4 rooms, and it allows the control of all functions of the building through KNX standard, providing significant savings in energy consumption.What measures should be immediately adopted by the Government in the energy sector? f.T.: We are not the kind of company which expects or requires that the state or someone else should take action, but we focus on what we can do and the ways which we can follow. However, in order to answer your question, we believe that the energy efficiency, in particular the one of the buildings, and the investments in the renewable energy sector in accordance with EU directives, should be among the Government priorities regarding the development and the implementation of a new

„It is estimated that electricity and gas market liberalization will bring higher prices, which amplifies the need to reduce energy consumption, in order to withstand easier the new bills. This issue will affect both the companies, and the households. Therefore, we expect a higher increase of the concept of energy efficiency and a continuation of the upward trend of sales of such solutions.”

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„We believe that the energy efficiency, in particular the one of the buildings, and the investments in the renewable energy sector in accordance with EU directives, should be among the Government priorities regarding the development and the implementation of a new energy strategy of Romania.”

energy strategy of Romania. Buildings account for 40% of global energy consumption. Therefore, this segment presents the greatest potential in terms of energy efficiency. However, Romania is far behind other European countries in terms of the energy efficiency of buildings. In the context of EU pressure, all the new buildings must consume ‘nearly zero energy’ since 2021 (energy efficient buildings whose low consumption can be provided, largely, by renewable energy), and Romania has to take urgent action in order to recover its discrepancy compared to other Member States and to come closer to the target.The 20/20/20 EU Directive requires that at least 20% of all energy produced in Europe should be from renewable sources by 2020. The target for Romania is 24% and, even if we already exceeded it, the legislative changes in this sector seem to have diminished the interest of investors in the wind or solar projects. Therefore, we believe that this sector needs a legislative

stability in order to encourage the investments.Another sector which needs some encouraging state measures is the industry of electric vehicles. One of the provisions of the 20/20/20 EU Directive refers to a 20% reduction in emissions of greenhouse gases, and one of the measures that can contribute to achievement of this objective is the increase of demand in the sector of the electric vehicles, because the offer has been already launched − Car manufacturers have already launched electric models, and Schneider Electric provides both the charging stations, and the solutions for the electric charging infrastructure.

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07RecoRd PRoduction of Renewable eneRgy

the production of renewable energy reached a record level last year. the fact is that there are 82% more installations of green electricity production plants in the system since last year. Most of these projects are photo-voltaic plants with 23 times greater installed power.

Electric EnergyBy Ada Gavrilescu

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The production of renewable energy reached record levels by the end of last year. The total capacity of the projects existing in the system reached 4,255 MW which is 82% more than what was produced in 2012, according to the data of the National Energy Regulatory Authority (ANRE) . Therefore, on December 31, 2013 the wind energy projects installed in the system had a total capacity of 2,503 MW, the photovoltaic plants produced 1,155 MW, bio-mass - 66 MW and hydro-electric power - 530 MW.

More Solar Panels The capacity of the photo voltaic projects grew last year by 23 times from 49MW at the end of 2012 to 1,155 MW by 31 December 2013. The producers of renewable energy receive subsidies in the form of green certificates that are paid by the consumers including the householders and are displayed separately in the electric bill. Romania has stated 24% of energy consumption in 2020 will come from renewable sources, however, ANRE announced that this

target had already been reached by January 1st, 2014. Photovoltaic panels last year registered spectacular growth due to the number of green certificates received by the producers which was the highest among all renewable energies, which were six certificates per one MW delivered in the network.Investors in solar panels rushed to install many projects in 2013 since by January 1st 2014 they would receive

one certificate. According to the data of the Transelectrica Company at the end of 2012, in the system there were photovoltaic projects of just 49 MW of power. By the end of November their total capacity had already reached 7,450 MW. According to the data of ANRE for the entire year, at December 31st 2013 the cumulative power of solar panels reached 1,155 MW.

a year with the Most ProjectsParallel to the above, the capacity of wind power projects grew from 1822 MW at the end of 2012 to 2503 MW. Micro-Hydropower plants (SHP) totaled 530 MW by the end of last year which is more than the 405 MW they reached in December 2012 and biomass projects grew from 40 MW to 65 MW. Thus 2013 will remain in the history of the Romanian energy system as the year when the most electric projects of renewable sources were installed, and a year with an absolute record of the installation of photovoltaic panels.

2013 will remain in the history of the Romanian energy system as the year when the most electric projects of renewable sources were installed, and a year with an absolute record of the installation of photovoltaic panels

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08between obligations and economic potentialabout 40% of the total energy consumption in the european Union is the consumption for the buildings. based on these data, the reduction of the energy consumption, the implementation of measures to increase the energy performance of the buildings, the policies and the measures targeting the “buildings with almost zero energy consumption” are trends that eU countries must align for both the reduction of energy dependence, and the reduction of greenhouse gas emissions.

Energy efficiencyBy Ada Gavrilescu

19In this context, Romania has the advantage of a lower consumption than the European average, but it has also the huge disadvantage of a very small share of energy efficient buildings. The improvements which has to be made by the Romanian state in this regard mean, on one hand, the alignment with the standards imposed by the European Union, but also, on the other hand, some economic benefits which equals an up to six percent increase of GDP, in medium and long term.

only 6% of the residential buildings are energy efficientWith a percentage of up to ten percent of buildings that meet energy efficiency standards, the potential savings that could be achieved by Romania through measures to increase the energy performance of buildings are more than promising. Thus, the estimates made by the experts of Romanian Association for Promoting Energy Efficiency (ARPEE) show that Romania could save up to € 7 billion Euros by applying energy efficiency standards.According to ARPEE data, Romania spends 2.5 times more energy on Gross Domestic Product (GDP) unit than the EU average and it could save between € 5 and 7 billion Euros in the long run by employing energy-saving measures. This level would be equivalent to an increase of 4-6% of GDP, without additional energy consumption.“The losses in the industrial sector reach 30-35% of total consumed energy, while buildings lose up to 40- 50% of the energy supplied”, the ARPEE representatives stated. However, at the same time, the

consumption is two times lower in Romania compared to the average of the European level. Although our resources puts us among the first EU countries in terms of energy production potential, Romanian consumption is twice lower than the European average, according to Aureliu Leca, Executive Director at Romanian Association for Promoting Energy Efficiency.Nevertheless, the high cost of bills paid by Romanians is one of the major issues that have to be resolved on the energy market in Romania. The main cause of these costs is the waste of energy and, hence, the inefficient buildings in terms of energy performance – specialists in the field sustain. “The losses occur, among other things, due to the energy inefficient buildings and because of the heating systems” – ARPEE Executive Director said.

According to the specialists, an alarm should be rung even by the figures, which shows that only 6 percent of all buildings in the residential sector in Romania are energy efficient.

european commission: solve quickly the problem of energy efficiency of buildings in Bucharest!The representatives of the European Commission found that most buildings in Bucharest consume up to eight times more energy than the ones in other old European towns. This issue was discussed at the end of last year, during the official visit in Romania of the European Commissioner for Climate Action, Connie Hedegaard. The European official expressed her concern about the state of the buildings in the Capital and she asked for a quick solution of this problem, at the meeting with the Romanian Minister of Environment and Climate Changes, Rovana Plumb.“The energy efficiency of buildings in Bucharest is a problem which you should take into consideration and fix it as soon as possible. The European Commission’s concept is to adopt measures to improve obviously the environment, until 2030. That does not happen because we do not deal with other problems or because we do not take into consideration the importance of the economical growth, but solving of the environmental problems is a key component of economic progress, as important as creating jobs. Moreover, I think that the cooperation with Romania, with its Minister in this field, is very good and I hope to develop ourselves together”, Connie Hedegaard said.

“The energy efficiency of buildings in Bucharest is a problem which you should take into consideration and fix it as soon as possible. The European Commission’s concept is to adopt measures to improve obviously the environment, until 2030.” - Connie Hedegaard, European Commissioner for Climate Action