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The energy security of Romania can be endangered by the lack of investments in capacities for the generation of electricity
The Coalition for the Development of Romania (CDR) sends a signal of alarm with regards to the importance of legislative framework to stimulate investments in new capacities to produce electricity by ensuring the right of the investors to sign bankable negotiated contracts on long terms, outside the centralized market.
The representatives of CDR show that the energy security of Romania may be endangered by the lack of investments in capacities for the generation of electricity.
‘CDR follows with attention the evolution of the investment flows in the Romanian economy, context where the attention is drawn by the lack of private investments in one of the main strategic pillars of economy – the domain of electricity generation. Practically, over the last years, the private investments in this sector were diminished dramatically down to almost zero. The park of electricity generation from conventional sources in Romania is aged and needs massive capital investments. Important installed capacities gets close to the term of withdrawal from exploitation due to age, conformity to European environmental legislation or economic performance.
An important source for financing for their substitution, the private capital, has some obstacles originated by the legislative framework. This blockage may generate threats at the address of energy security of Romania, as a new project, from the stage of feasibility analysis to putting to work surpasses the values for the medium term. For example, the projects considered priority in the proposal for energy strategy of Romania necessitates over five years between the decision to invest and the moment of putting to work’ the press release says.
Thus, CDR reiterates the message that the attempts to solve this blockage through amendments of the secondary regulating framework or through platforms for trading on centralised markets are not sufficient to offer acceptable solutions for private investors and financers, being necessary a revision of the primary legislation provisions, showing that, in the absence of real measures, the consequences on medium term will be an installed generating capacity which is insufficient, with direct impact on the energy security of Romania.
CDR is a private initiative built as an agreement for collaboration through collective participation of its members and gathers organisations such as The American Chamber of Commerce to Romania(AmCham), The French Chamber of Commerce to Romania (CCIFER), The Association of Business People in Romania (AOAR), The Chamber of Commerce and Industry Romania-Germany (AHK), Romanian Business Leaders (RBL)The Council of Foreign Investors (FIC), The Employers’ Confederation Concordia (CPC)and the National Council of Private Small and Medium Entreprises of Romania(CNIPMMR).
(Photo:https://www.nato.int/docu/review/articles/2016/07/07/energy-security-what-s-at-stake/index.html)