Tag: energy independence

  • Exercising energy resistance

    Exercising energy resistance

     

    The start of the year brings the future of Europe’s energy supply back in the spotlight, with the cessation of the transit of Russian gas through Ukraine. For Kyiv, the reason why it decided not to extend the transit agreement beyond December 31, 2024, is simple: it wants to leave Moscow without one of the main sources of money, with which it finances its invasion of Ukraine. Heavily dependent on this gas, Slovakia and Hungary, whose prime ministers have good relations with Moscow, have criticized Kyiv for this position, emphasizing that the decision to stop the transit of Russian gas via Ukraine is not a simple political gesture, but an extremely costly measure for the entire EU.

     

    On the other hand, Ukrainian President Volodymyr Zelensky accused the Slovak prime minister of opening a second energy front against Ukraine, at Russia’s order. The picture is completed by the decision of the Russian company Gazprom to halt, as of January 1, the delivery of natural gas to the Dniester region of the Republic of Moldova. Under these circumstances, the power plant in Cuciurgan, located on the left bank of the Dniester, under the control of Russophile separatists, no longer supplies electricity to the districts in the rest of the Republic of Moldova. The little electricity that is now produced is obtained using the coal once brought from Donbas, occupied by Russia. It is the only type of compatible coal, stocks last only for a month or two and cannot be replenished.

     

    Although severely affected by the situation, Dniester, refuses Chisinau’s help. The Moldovan authorities, who have established a state of emergency in the energy sector, have managed, on the other hand, to ensure the smooth supply of electricity and natural gas to consumers on the right bank of  Dniester.

     

    Data published by the government shows that half of the electricity needs were covered by imports from Romania, which, fortunately, is the fourth most independent country in terms of imports from Russia, after Sweden, Estonia and Iceland.

     

    At EU level, the war in Ukraine has clearly shown the level of dependence on energy imports, and forced Brussels to find solutions to change the situation. In 2021, European imports from Russia represented 62%, a Eurostat report shows, and currently this share has decreased significantly, also due to the community’s plans for green energy. Faced with the greatest energy challenge, Europe continues to learn to break away from dependence on Russia. Will it manage to ensure its energy security affected by the war in Ukraine? Journalist Radu Tudor, military analyst, explains: “Yes, without a doubt. And last winter we had some threats from Moscow. Even the people at Gazprom made a video about how Europe will freeze, how Europeans will freeze to death without Russian gas, and here we are, we have come out well and, more than that, we have 30%-40% of our gas reserves left in European storages. And I want to give the example of Romania. At the moment, we can get through the winter without any problems. We will occasionally resort to some imports, but that does not mean dependence, that means interconnection. If Europe learns to break away from the toxic dependence on Russia, this will be the best exercise in resistance for us and, last but not least, an example for other areas. We have the bad habit of depending on the Chinese market, because labor is cheaper and profits are higher, we have the habit to depend on India, on Russia, and so on. This, from my point of view, is a great vulnerability for us and we must learn to capitalize on our own resources and, at least in the strategic field, not to leave ourselves in the hands of others, who are also opposed to us in terms of ideology.”

     

    Europe’s energy resilience has been a priority in all European projects for a number of years, but the war in Ukraine has prompted new approaches and has imposed adaptation to the current geopolitical context. From the perspective of resilience in terms of electricity, first of all, in a war situation, mega-projects can turn into mega-vulnerabilities and even into weapons that can be used against the country and the civilian population, specialists have warned. Can small modular reactors be useful in this context? Radu Tudor: “It is, from my point of view, a life-saving idea. And the fact that Romania is one of the few NATO member states, the few states in Europe that implement this technology, is a very, very good example. Romania, in the late 1970s and early 1980s, started a nuclear energy project. Even though we were a communist state, even though we were a Warsaw Treaty state, we launched a nuclear energy project with Canada, a NATO member state, with the involvement of engineers from Italy, a NATO member state, and we developed the Cernavoda power plant. What would come as a natural and logical continuation of the decision at that time and of the Romanian nuclear project would be the SMR technology, which, in my opinion, could prove to be a lifesaver for the resilience of the Romanian state, for helping states like the Republic of Moldova, which are going through extremely difficult times and need Romania’s help.”

     

    Speeding up this project would bring total energy independence to Romania and, more than that, says Radu Tudor, it would make us a net exporter of energy to Europe.

     

  • Can Romania become energy-independent?

    Can Romania become energy-independent?

    The war in Ukraine has brought to the attention a very delicate problem for both Romania and most European countries – that of energy independence. Although Romania is the EUs second largest natural gas producer, after the Netherlands, the country continues to depend on gas imports. Romania produces at present around 25 million cubic metres of gas every day, which is enough to cover consumption during summer, but not enough for the winter season. Its gas storage at 90%, authorities have given assurances that Romania can get through winter without importing gas, in case of a mild winter. However, things are different when it comes to electricity.



    Situations when energy production exceeded consumption have been very few lately and Romania has, according to the authorities, production capacities to cover consumption twice. According to the National Energy Regulatory Authority (ANRE), Romania has an installed energy capacity of almost 19,000 MWh. The hydro power covers most of production, followed by coal and wind energy. Romania will succeed, by 2027, to become energy independent and even turn into a regional security pillar in the field, including for the Republic of Moldova and Ukraine, says the ANRE chief, Dumitru Chirita: The situation in the electric power sector will stabilise, in the sense that we will manage to have the production capacities to cover the demand on the electricity market, but also to offer more support to the Republic of Moldova, so as the situation should not be the one of today. Moreover, we must consider a new energy strategy and see how we handle the integration of the problems in Ukraine into the Romanian energy strategy, because we will too have to be a supplier of energy security to Ukraine, which is fighting Russia.



    Worth mentioning is the project initiated by Romania with Azerbaijan, Georgia and Hungary, which deliver natural gas through the Black Sea. Romanian Energy Minister, Virgil Popescu, has recently said that through this project, Romania will become an important pole in terms of electricity and natural gas. At the UN conference on climate change, Romanian PM Nicolae Ciuca said Romania is making important steps towards energy independence, via clean technology, in the context of submitting two letters of intent for loans from US Exim Bank, to build reactors 3 and 4 of the nuclear power plant in Cernavoda, south-eastern Romania. (EE)




  • July 9, 2022 UPDATE

    July 9, 2022 UPDATE

    COVID – The Health Ministry announced that starting next week the authorities will revert to daily reports of COVID infections and fatalities, due to an increase in teh number of daily cases in recent weeks. According to the Health Ministry, 7,726 new cases of COVID infection were reported over June 27 – July 3, of whom 1,307 retested positive.



    INFLATION – The inflation rate is expected to slightly drop in the next months, the Central Bank (BNR) announced. However, prices might again peak next spring unless the government extends its national schemes capping electricity and gas prices past the April 2023 deadline, the BNR spokesman Dan Suciu has told Radio Romania. Romania has an imported inflation, Dan Suciu argues, meaning that it is generated by the global increase in energy and fuel prices. In May, the inflation rate stood at 14.5%. The authorities expect the rate to grow and peak by the end of July.



    DROUGHT – 70% of Romanias surface is affected by drought. People in a number of areas have access to tap water only for a few hours every day. Traffic on the Danube River is also affected, as the water level is half the multiannual average and is estimated to keep dropping. The Porțile de fier I and II hydroelectric power plants are also reporting difficulties. Navigators will have to observe a maximum mass limit to avoid getting stuck in sand crossings on the bottom of the river. The National Water Administration has given assurances that right now there are no water shortage risks in centralized water supply systems in large urban settlements. At the same time, Agriculture Minister, Petre Daea, told a private TV station that irrigation systems are functioning normally without any major impact on shelf prices due to the shortage of water. This years crops will cover internal demand and Romania will export any excess, the Minister went on to say.



    ENERGY – Romania will have energy independence and security, Romanias Energy Minister, Virgil Popescu, wrote on Saturday on Facebook. The Romanian official explained Romania will be producing coal-based electricity at full capacity over the coming years in order to overcome the current energy crisis. Minister Popescu recalled the authorities decision to invest in a new power plant that will produce electricity using Romanian gas. The energy crisis has forced a number of European states to reopen coal-based power plants, despite environmental concerns. European governments are thus seeking to curb their dependency on Russian energy imports. In recent months, Moscow has significantly reduced its exports to Europe, fueling fears it might cut off the supply altogether.



    REFUGEES – 107,837 people entered Romania on Friday, of whom 22,298 Ukrainian nationals, a 104% increase compared to the previous day, the Romanian Border Police Inspectorate reports. Since February 24, some 1.5 million Ukrainians have entered Romania.



    SWIMMING – Romania has so far won six medals at the European Junior Swimming Championships hosted by Otopeni, and is now ranked third in the medal standings, after Poland and Hungary. On Saturday, David Popovici qualified to the 100m freestyle final, scheduled for Sunday. So far Romania has won gold in the mens 4x100m relay event (David Popovici, Vlad Stancu, Ștefan Cozma and Patrick Sebastian Dinu), in the 200m freestyle event (David Popovici), in the 50m freestyle event (David Popovici) and in the 1,500m freestyle event (Vlad Ștefan Stancu). Additionally, the mix 4x100m relay team won silver (David Popovici, Patrick Sebastian Dinu, Bianca Costea and Rebecca Aimee Diaconescu), while Bianca Costea scooped silver in the 50m freestyle event. Attending the European Junior Swimming Championships are 500 athletes from 42 countries. Romania is represented by 26 swimmers, 14 in the mens competition and 12 in the womens competition. (VP)



  • Steps to secure Romania’s energy independence

    Steps to secure Romania’s energy independence

    With significant reserves of oil and gas, Romania is less reliant on Russia in this respect compared to other countries in the free world, and thus less vulnerable to Moscows unpredictable power plays. The Black Sea is home to large quantities of natural gas, with an untapped estimated volume of 200 billion cubic meters. The largest volume is found in the Neptun Deep perimeter, currently exploited by the Romanian state-owned enterprise Romgaz and the Austrian company OMV Petrom. The country also has a relatively new nuclear power plant at Cernavodă, in the southeast, with two functional reactors and another two that are currently operationalized.



    Our country has wind farms as well as a generous hydrographic network, favoring the building of hydroelectric power plants. Apart from these assets, Romania also has robust partnerships with EU and NATO Member States, who are also taking steps to secure their energy independence from Russia. Greece has recently inaugurated a hub for storing and transporting natural gas, which will cover not just its domestic demand, but will also help provide natural gas to other countries in the region, the Prime Minister of Greece, Kyriakos Mitsotakis said on Thursday on the sidelines of his meeting with his Romanian counterpart, Nicolae Ciucă. The two officials discussed about the gas interconnector linking Greece to Bulgaria and which is expected to transport up to three billion cubic meters of gas per year. The gas will be transported from Anatolia, in Turkey or from the Adriatic Sea, all the way to Bulgaria and Romania. Prime Minister Ciucă said Bucharest in turn will be able to redirect the gas transports to its eastern partners, the former Soviet republics of Ukraine and Moldova, whose pro-Western regimes have often been pressured by the Russian Federation, which uses its gas exports to these countries as leverage.



    Also on Thursday, Prime Minister Nicolae Ciucă met with John L. Hopkins, the president and CEO of the American company NuScale. The White House announced on June 26 that the United States government and the Oregon-based company will offer 14 million USD to support engineering and feasibility studies aimed at helping Romania build an SMR power plant. The Small Modular Reactor technology is not currently used in Europe, and the former thermal power plant in Doicești, Dâmbovița County (south) has been selected to host the first of the six modules expected to be built. Romania wants to become a regional hub for producing energy using SMR technologies, and the authorities have promised the first unit will be finalized by 2030. (VP)


  • June 29, 2022 UPDATE

    June 29, 2022 UPDATE

    NATO -
    NATO leaders on Wednesday officially launched the process whereby Sweden and
    Finland will join NATO after Turkey lifted its veto on Tuesday evening.
    Attending the NATO summit in Madrid, Romania’s president, Klaus Iohannis said
    NATO leaders agreed to consolidate support for Ukraine by adopting an
    assistance package. Additionally, a new strategic concept was adopted ensuring
    the main lines of action for the next ten years, the Black Sea being one of the
    areas of strategic interest. In the context of the security developments in
    Ukraine, NATO will consolidate its long-term deterrence and defense posture on
    its eastern flank, something which Romania has insisted on, the president said.
    On the other hand, Klaus Iohannis said that NATO leaders agreed to boost their
    support for the Alliance’s partners in the eastern vicinity, including the
    Republic of Moldova and Georgia, which are the most vulnerable to the current
    security threats. Romania has achieved its goals at the NATO summit, president
    Iohannis also pointed out.




    USA -
    The United States will consolidate its presence in Europe in response to the
    new threats created by the Russian invasion of Ukraine. US President Joe Biden
    announced the USA will boost its military presence in Spain, Poland, Romania,
    the Baltic States, the United Kingdom, Germany and Italy. On the sidelines of
    the NATO summit in Madrid, the White House leader confirmed that the number of
    US destroyers deployed to Spain will be increased from four at present to six,
    while an additional two squadrons of state-of-the-art F35 fighter jets will be
    sent to the United Kingdom. The US will permanently station the U.S. Army V Corps
    forward command in Poland and will supplement its forces in Romania by an
    additional 5,000 military. President Iohannis said the move will benefit
    Romania and the security of the entire region.




    ASSISTANCE
    – The European Commission has approved a 60.7 million EUR assistance package to
    support Romania’s haulers. The measure is targeting all the companies with a
    valid community license, which have been affected by the present crisis, caused
    by the Russian invasion of Ukraine. The aid does not exceed 400 thousand EUR per
    enterprise and will be granted until December 2022.




    ENERGY
    -
    Romania can become energy independent and a provider of energy security in the
    region as well as a transport corridor for gas and green energy in the Caspian
    Sea, the country’s Energy Minister Virgil Popescu said. Together with Prime
    Minister Nicolae Ciucă, he participated
    on Tuesday in the ceremony occasioned by the beginning of gas exploitation at
    Midia, in the Black Sea operated by the Black Sea Oil&Gas. Roughly one
    billion cubic meters of gas is expected to be extracted here annually.


    POLLUTION
    -Bucharest is among
    the five most polluted capitals in the European Union, says a report by the
    inter-governmental group of experts on climate change. The first four most
    polluted capitals are Warsaw, Zagreb, Athens and Sofia. The situation is
    influenced by several factors such as traffic. Romania boasts a big fleet of
    old cars, with a use average of 17 years, whereas the bloc’s average is of 12
    years. Bucharest also is short on green areas with only 7 meters of green space
    per capita, whereas the European rate stands at around 18 meters. Another
    factor is the city’s gas heating system. (DB & VP)



  • Energy production in Romania

    Energy production in Romania

    The Government in Bucharest wants to quickly boost its electricity
    output, and coal seems to be a solution to curb Romania’s dependency on Russian
    energy imports. As a result, the Cabinet decided to restart the production
    capacities of the Oltenia Energy Complex in the south. Another turbine expected
    to produce 300 MW is expected to be rendered operational over the next period.
    Moreover, by finalizing an investment project at the Iernut Power Plant in
    central Romania, another 210 MW are expected to be produced by the end of the
    year. Prime Minister Nicolae Ciucă said efforts are being made to achieve an important
    target, namely securing energy independence, all the more so as Romania has the
    resources to do it.

    The ruling coalition has had talks in recent days, at the
    level of the Energy Ministry, but also with managers of energy companies,
    including with representatives of American companies willing to develop modular
    nuclear energy facilities. Liberal leader, Florin Cîţu, in turn said Romania already has alternatives to
    fuel imports from Russia in order to produce energy, and one of these resources
    is coal. In thix context, Florin Cîţu recalled that 600
    people will be hired back in the mining sector, in order to increase the output
    capacity of this sector. On the other hand, the DEPOGAZ company has launched a
    public auction two projects for increasing its capacity to store, extra and
    inject natural gas. At the same time, the Government plans on reintroducing the
    minimum reserve amidst tensions sparked on the market by the Russian invasion
    of Ukraine.

    The two projects at DEPOGAZ will boost the storage capacity by 450
    million cubic meters per day. Director Vasile Cârstea says aggregate storage
    and onshore production could secure deliveries of over 60 million cubic meters
    per day, which would be tantamount to the amount of Russian gas imported. In
    this context, Liberal leader, Florin Cîțu announced that the offshore bill, set
    to greenlight the exploration of gas deposits in the Black Sea, is nearly ready
    and will be voted as a top priority. The Liberal leader also said there are
    companies that will be extracting gas shortly after the bill is passed. Romania
    has enough fuel reserves, and there is no reason for fuel prices to increase
    overnight, the authorities say, after on Wednesday night people queued up to
    refuel. Energy Minister, Virgil Popescu, said this is the result of fake news
    spread on social media. (VP)



  • Romania: energy independence?

    Romania: energy independence?

    The good news is that, unlike in many other European countries, Romania’s domestic output already meets most of the country’s natural gas demand. The even better news is that it will no longer need any gas imports from Russia, once the extraction works begin on the Black Sea continental shelf. This is the conclusion of a study made public by the former Energy Minister Razvan Nicolescu, today an expert with the well-known Deloitte agency. He explained that offshore perimeters may yield a total of 170 billion cubic metres of gas, that is an annual average of 5 billion cubic metres.



    Investments in the hydrocarbon industry on the Black Sea will bring 26 billion US dollars in revenues to the state budget and an additional 40 billion US dollars to Romania’s GDP until 2040. The estimate, which is more guarded than that of the Romanian authorities, relies on technical data concerning offshore extraction operations in the Gulf of Mexico, which were similar to the ones at the Black Sea. Razvan Nicolescu:



    As far as the deposits are concerned, the authorities said they amount to 200 billion cubic metres. We say we’re talking about 170 billion, according to our calculations. The European Commission, in its impact surveys, points to a steep increase in natural gas prices. We estimate there will be an output surplus, which will have a positive impact on the competition and will slow down the increase of prices in Romania.”



    Once the exploitation of natural gas in the Black Sea initiated, each dollar invested there will triple, through either direct or indirect effects or in related sectors. Because, as Deloitte experts emphasise, this is not only about selling the actual gas, but about the entire industry involved. Here is project coordinator Sorin Elisei:



    The investment will amount to 22.2 billion US dollars. The implementation of these projects, in all their 4 stages, will support an annual average of over 30,000 jobs. The combined revenues to the state budget will reach 26 billion US dollars, and we’re also talking about over 70 billion US dollars in additional output generated thanks to these investments.”



    Deloitte estimates that 65% of the natural gas will stay in Romania and the balance will be exported, thus consolidating Romania’s position on the European natural gas market. Sorin Elisei again:



    Out of the 28 member states, I believe we are only behind Estonia and Denmark in terms of dependence on resource imports. And I think we might even improve this already honourable position.”



    The predictions made by Deloitte are good news not only to economic analysts, but also to foreign policy experts. The latter say that Moscow has repeatedly used Europe’s dependence on Russia’s hydrocarbons for political and geopolitical purposes, and add that identifying and capitalising on alternative sources of oil and natural gas is vital.


    (Translated by A.M. Popescu)

  • Cooperation between Romania, Bulgaria, Greece and Serbia

    Cooperation between Romania, Bulgaria, Greece and Serbia

    We can become an example of peace, stability and prosperity by means of joint action, the Romanian Prime Minister Mihai Tudose, his Bulgarian counterpart Boiko Borisov, the Greek Prime Minister Alexis Tsipras and Serbian President Aleksandar Vucic agreed at the end of Tuesday’s summit hosted by Varna, Bulgaria.



    The four officials discussed bilateral and regional cooperation. According to the Bulgarian Prime Minister Boiko Borisov, the four countries will form a group that will coordinate its actions so as to become more efficient at European level. In turn, the Serbian President believes the four countries can achieve great things for the prosperity of their citizens. The Greek Prime Minister also said the group can be key to the stability and peace of the entire Balkan region.



    Romania’s Prime Minister Mihai Tudose says Romania, Greece, Bulgaria and Serbia are bound by a pragmatic partnership, and will strive to fulfill clear-cut goals before the next summit to be hosted by Belgrade.



    Mihai Tudose: “We need to coordinate ourselves, because we are talking about common infrastructure projects. We also have our separate, national projects, but interlinking our national projects will help develop a regional grid that will favour the kind of small-scale economic trade that helps sustain communities living on the borders”.



    Prior to the Varna Summit, the Prime Ministers of Romania and Bulgaria attended the inauguration of a new crossing point on the Romanian-Bulgarian border, Lipnita-Kainardja. The new border-crossing point fulfills all Schengen criteria. Both countries hope to join the Schengen area within a year, given that Romania and Bulgaria make up for one of the most secure EU external borders.



    The inauguration ceremony was part of a broader round of bilateral talks between the two officials. Mihai Tudose and Boiko Borisov agreed on a new bilateral schedule which includes monthly meetings. Talks also focused on joint projects in the fields of economy, energy and transports, aimed at making the two countries’ economies more competitive at European Union level.



    The two officials also signed an agreement for real-time energy assistance, whereby the two countries will use their available energy supplies to provide mutual aid in case of emergency, without endangering their own energy systems.



    Mihai Tudose explains: “Each of the two countries can act as a safety net for the other in case of a crisis, such as the collapse of the national energy grid. It’s a very important agreement which speaks volumes about the way we envisage energy cooperation in the future”.



    Another point of future cooperation is building a new bridge over the Danube and a motorway linking Sofia to Bucharest.