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Dan Drăgan
State Secretary
Romanian Ministry of Energy

17 May 2021

In what ways does the Ministry of Energy plan to contribute to the development of RES capacities in Romania at this point in time?

First off I would like to re-emphasize that the Ministry of Energy and the people that are part of the current administration, including myself and Minister Popescu, support renewable energy and see it as a vital component for the future of our country. It was in our responsibility to develop the National Energy and Climate Plan - according to it, by 2030 we will install another 6.9 GW of RES capacities, to meet the 30.7% target we assumed. As you may have noticed, in the past few months several companies in which the state has a stake have announced plans to invest in wind and solar projects. We find it important that all stakeholders participate in this wave.

We want all companies involved, from developers to component producers, to trust that the Ministry of Energy is open to discussions and committed to helping the market develop, in accordance with the strategies in place at both a national and European level.

The EU has recommended an even more ambitious target for Romania, of 34%?

We stay up to date with the debates that are taking place at EU level regarding the climate neutrality plans. No doubt Romania is one of the states that will require an accelerated development, but this must be done in accordance with the possibilities of the energy system. The 6.9 GW make for an ambitious objective and requires considerable investment. The NECP will indeed be re-evaluated before 2030 (most likely in 2023) and the way forward will not be one of reduction, on the contrary, it will probably show even more openness towards RES produced energy.

Even though some technologies have reached grid parity, CfDs are seen as very useful by the industry - how far ahead are you in their implementation?

Indeed many technologies have reached an LCOE (levelized cost of energy) that allows them to function competitively on the market, but this doesn’t apply to all, depending on the operating time and the price per MWh. In this sense the Ministry is working with a team of consultants on a first draft for CfDs. A first evaluation will be launched publicly towards the end of this year.

What are the specific intentions of the Ministry when it comes to offshore wind and hydrogen?

In the offshore area there are already several companies (including partially state owned ones) that have announced their intention to develop capacities in the Black Sea. But there are certain legislative steps that still need to be taken before we are ready to kick off projects. We also noticed a strong interest from Romanian companies to become part of a hydrogen supply chain, together with methane gas. By looking at what other countries have done in this area we will elaborate a strategy for hydrogen. I estimate that the first ideas and elements of the strategy will be launched by end of this year.

One key mission during this wave of development is to grow the national supply chain. Does the Ministry plan to support the industry in this process?

We trust that together with the Ministry of Economy we can come up with a few good directions to help develop this industry segment. It is essential in our view to collaborate with industry members on such topics, on our side we are happy to offer support where we can.

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