Radio România Internațional

Tag: energy

  • Energy prices, a postponed solution

    Energy prices, a postponed solution

    Record electricity prices continue to be reported in Europe, and both the domestic and industrial consumers fear that, in the coming winter, they might have to pay huge bills — if they can afford. That is why the Community institutions are trying to reach a common solution for all the EU member states, which is not at all simple, as always happens when extremely sensitive issues are at stake. Gathered in Slovenia for an informal Council meeting, the European leaders have failed to agree on a response to the accelerating price rise. France and Spain, for instance, are calling for an in-depth reform, Romania wants an urgent solution, while other states are calling for patience.



    Attending the meeting, the Romanian President Klaus Iohannis said: ʺWe had a first discussion about energy prices, especially electricity prices, and we agreed to speed up all efforts. The Commission has promised, and we expect it to respect its promise, to come with an approach, with solutions in one week at the most, because we cannot go through the winter season with rising prices.”



    The energy price hike was also tackled in the European Parliament, where the representatives of the European Commission and the European Council were heard. Energy Commissioner Kadri Simson of Estonia provided the solution that by 2030, in Europe, 65% of electricity production should come from renewable sources. But what will people do until then? MEPs have accused that the measures to eliminate fossil fuels did not take into account the fact that there are insufficient renewable sources, that nuclear energy has been marginalized and that Europe is blackmailed by Russia in relation to energy. Almost all political groups in the EP have called for a single European energy market and the purchase of gas through a common scheme. There was also the opinion that prices should be capped.



    MEPs also called for harsh measures against energy suppliers’ speculation. In Romania, the huge rise in electricity and gas prices coincided with the complete liberalization, from July 1, of the energy market and many companies took advantage of the situation. Heard in the parliamentary commission that investigates the causes of very high prices, the president of the National Authority for Consumer Protection, Claudiu Dolot, said that, in September, more than 30 companies broke the law, registering the worst irregularities regarding non-compliance with contractual clauses. (LS)

  • Who’s paying the energy bill?

    Who’s paying the energy bill?

    The representatives of the National Energy Regulatory
    Authority were summoned for a hearing in Parliament to shed light on the
    increases in the electricity and natural gas bills in Romania. The
    parliamentary committee inquired about the causes of the price hikes after the
    liberalisation of the electricity market on 1st of January this year
    and of the natural gas market on 1st July last year.




    The rise in prices was to be expected, but not to the
    level we’re seeing today, say the Authority representatives, who also emphasised
    that European regulations are preventing state authorities from interfering
    with price setting. They are saying that electricity bills may decrease by 15%
    if the green certificates and the cogeneration fee are covered by the state
    instead of consumers. This measure may be temporary, for six months, to see how
    the energy market is behaving. At the moment, the electricity bills of all
    end-consumers in Romania include, apart from the costs of the energy used, the
    cost of green certificates for the production of renewable energy and a
    contribution to high efficiency cogeneration. The parliamentary committee asked
    the representatives of the National Energy Regulatory Authority to present more
    data in the coming period about, among others, the regulations the Authority is
    considering to diminish the effects of energy price hikes.




    Energy minister Virgil Popescu was also asked to
    appear in the Chamber of Deputies a few days ago to explain the rise in
    electricity and natural gas costs. He explained that this is happening not only
    in Romania, but globally, and that the European Commission is preparing a set
    of recommendations for member states to compensate for the rise in electricity
    bills. Before the debates in the Chamber
    of Deputies, minister Virgil Popescu also appeared before the parliamentary inquiry
    committee, where he gave assurances that the government is working on an
    emergency order to help over 60% of the population with the payment of energy
    bills. He said a state aid scheme is being considered for small and medium
    sized companies that may come into effect from 18th November.




    The National Energy Regulatory Authority is advising
    electricity consumers who are now benefiting from universal service prices to
    sign a new contract by the end of the year, because the cost of this service is
    expected to go up from 1st January. At the moment, over 57% of
    clients have contracts on the competition market, which puts Romania in first
    place in the European Union with respect to the accelerated pace of transition from
    the regulated market to the competition market. (CM)







  • Energy prices cause growing concern

    Energy prices cause growing concern

    A committee has been set up in the Parliament of Romania to investigate the substantial increase in the price of natural gas and electricity. The committee found that these increases are in line with European trends.



    Energy prices in the continental market have reached record-high levels, fuelled by the costs of green certificates and the natural gas prices. Another problem for the European energy market is the uncertainty around gas imports from Russia, given that European storage facilities were only 70% full.



    The European Commission vice-president Frans Timmermans said the unprecedented electricity prices in member states prove that the Union must give up fossil fuels and step up the transition to green energy. He also noted that, while fossil fuel prices rose substantially, the costs of renewable energy remain low and stable.



    EU member states like Italy, Spain and Greece responded to the rise in conventional energy prices and have already announced aid measures to help people pay their bills. In Bucharest as well, the government is planning to help households cover their electricity and natural gas bills.



    Under a draft emergency order first discussed on Wednesday, the government would subsidise electricity prices by 3.6 eurocents per KWh and natural gas bills by 25%. Beneficiaries will include households that use between 30 and 200 KW of electricity per month and between 100 and 1,200 cubic metres of natural gas per year. The average price used by the government in its plans is 16 eurocents per KW, and bills will be around 3.6 euro smaller per 100 KW.



    The government is also looking at options to introduce a natural gas price ceiling. PM Florin Cîţu said this should not affect investments in the economy, and that the measure requires talks with the Competition Council and the European Commission. According to the energy minister Virgil Popescu, such a ceiling would discourage foreign investments in Romanias electricity and natural gas extraction markets, because companies would be forced to sell for less than the market price.



    The Social Democratic Party in opposition announced that in the forthcoming period they will table a bill introducing a ceiling on electricity and natural gas prices for household consumers, as a stop-gap solution. The Social Democrats vice-president Mihai Tudose criticised the right-of-centre government for deregulating the energy market at the worst possible time, when the domestic output is considerably below its potential. (tr. A.M. Popescu)

  • September 15, 2021

    September 15, 2021

    Covid-19 – The number of COVID-19 cases and associated deaths recorded in one single day is on the rise Romania. 4,004 cases were announced on Wednesday out of more than 44,000 tests. 83 people have died of Covid-19 and 696 are in ICUs. New Covid-19 outbreaks are emerging. In those localities where the threshold of 2 cases per thousand inhabitants has been exceeded, the authorities are starting to enforce additional protection measures. In another development, the pace of the vaccination campaign remains slow, despite repeated calls from experts. Moreover, the Delta virus strain, which is beginning to become dominant, has a higher transmission rate than the previous variants. The authorities expect more and more people to get contaminated.



    Motion — Romania’s Constitutional Court is to announce the deadline for debating the Liberal Prime Minister Florin Cîţus notification regarding the existence of a legal conflict between the Parliament and the Government in relation to the censure motion tabled by the USR-PLUS, former no. 2 in the governing coalition and the nationalist Alliance for the Union of Romanians — AUR, in opposition. The parties involved were given Wednesday as deadline to submit their views to the Constitutional Court. The Permanent Bureaus of the Senate and the Chamber of Deputies believe that there is a constitutional conflict in the case of the censure motion. Instead, the Speaker of the Senate, Anca Dragu (USR-PLUS), and the Speaker of the Chamber of Deputies, Ludovic Orban (PNL), do not agree with Parliament’s unfavorable point of view, adopted with the votes of the National Liberal Party – PNL and of the Democratic Union of Ethnic Hungarians in Romania – UDMR (in the government coalition), and also of the opposition Social Democratic Party – PSD, therefore they sent separate documents to the Constitutional Court. Ms. Dragu syas there is actually a political conflict which the Government wants to transform into a constitutional one. The government, dominated by the Liberals, claims that the no-confidence motion does not have the minimum number of valid signatures and that the Speaker of the Chamber of Deputies did not inform the Government about the document on the same day it was tabled. Entitled Dismissal of the Cîţu Government, Romanias only chance to live! the censure motion accuses the prime minister of having plunged Romania into a serious economic and social crisis.



    Energy — The Romanian Parliament is today debating the rise in energy bills in Romania. The parliament has already decided to set up a committee to investigate the causes of the skyrocketing natural gas and electricity price hikes. The Labor Minister, Raluca Turcan, has pointed out that, one week after its adoption in Parliament, the Vulnerable Consumer Law has not yet been sent for promulgation. According to her, this is a law that provides financial aid to more than 500,000 households that need state support to be able to pay their bills during the winter season. On Tuesday, President Klaus Iohannis and Prime Minister Florin Cîţu talked with representatives of the Enel energy company about the recent developments on the domestic energy market. Klaus Iohannis told Enels management that it is necessary for companies in the sector and the authorities to coordinate their efforts to protect vulnerable consumers, and also companies that have already been strongly affected by the rising prices.



    Strasbourg — The next year will be yet another test of character for the EU with new challenges posed by the COVID-19 pandemic and deeper fractures, said Ursula von der Leyen in her State of the Union Speech delivered Wednesday in the plenum of the European Parliament in Strasbourg. The European official said the EU bloc would be stronger if it looked more like the “Next Generation”. The debate on the state of the European Union takes place every year in September and it is a key moment in demonstrating the European Commissions responsibility to the democratically elected EU representatives.



    Survey – Almost 2/3 of Romanian entrepreneurs (62%) do not feel the economic growth announced by the Government – show the results of a survey made by one of the most important producers of software for companies in Romania. According to the survey, only 9.5% of companies have registered increases in their turnover, and 26% do not notice any real change compared to 2020. Many entrepreneurs believe that instability and the lack of predictability will persist in the Romanian business environment in the current political context. (LS)

  • September 14, 2021

    September 14, 2021

    Energy. Romanian president Klaus Iohannis is
    today receiving a delegation of the Italian energy and utility group Enel led
    by the latter’s director Francesco Starace. The Enel delegation will also have
    a working meeting with prime minister Florin Cîţu. The Enel visit to Romania
    comes amid hikes in wholesale electricity and gas costs and the prospect of
    significant increases in energy costs for end consumers this winter. In
    Romania, Enel controls two major electricity and natural gas suppliers, three
    electricity distribution operators, a renewable energy plant operator and a
    local branch of an advanced energy solution company called Enel X.




    Deficit. Romania’s current account deficit passed 9
    billion euros in the first seven months of the year, compared with 5.35 billion
    the same time last year, according to a National Bank report. The country’s
    foreign debt also grew by over 6 billion euros since the beginning of the year
    to reach 132 billion euros, of which almost 73% represents long-term foreign
    debt. The National Bank report also says that direct foreign investments grew
    to reach some 4 billion euros in the first seven months of the year.




    Resolution. The European Parliament adopted a resolution requiring
    the removal of all obstacles faced by LGBTIQ persons when exercising their
    fundamental rights, including freedom of movement, anywhere in the European
    Union, writes a statement published on Tuesday on the European Parliament’s
    website. Under the resolution, the marriages and registered partnerships formed
    in another member state must be recognised across the Union, while same-sex
    spouses and partners must enjoy equal treatment as opposite-sex couples. Following
    a ruling from the Court of Justice of the European Union in the Coman &
    Hamilton case recognising that the term spouse includes same-sex spouses
    under the EU freedom of movement directive, the Commission is called on to take
    measures against Romania if the government does not update the domestic
    legislation to reflect this judgment, MEPs have requested. In June 2018, the
    Court of Justice of the European Union ruled that EU states cannot hinder the
    freedom of residence of a EU citizen by refusing to grant residency to their
    same-sex spouse from a non-EU country. The case referred specifically to the
    Romanian citizen Relu Adrian Coman and his American spouse Robert Clabourn
    Hamilton. MEPs also take note of the discrimination faced by LGBTIQ communities
    in Poland and Hungary.

    Anniversary. Romania and the United States will
    continue to be a bulwark of Euro-Atlantic values and they meet future challenges
    together as friends and allies, reads a joint press statement from the Romanian
    Ministry of Foreign Affairs and the US Department of State. The statement was
    released on the 10th anniversary of the signing of a joint
    declaration on Strategic Partnership for the 21st Century and the
    Agreement on the deployment of the Ballistic Missile Defense System in
    Romania.








    Covid-19. Romania reported almost 4,000 new Covid cases on
    Tuesday from some 47,000 tests, as well as 96 new deaths. 675 Covid patients
    are in intensive care, their number being on the rise. The coordinator of
    Romania’s mass vaccination campaign Valeriu Gheorghita said the vaccination
    rate among children over the age of 12 is nearing 15%, which he described as
    insufficient. He warned that the number of intensive care admissions among
    children is likely to grow. More than 5.2 million people are fully vaccinated
    in Romania, which accounts for only a third of the eligible population.     (CM)

  • March 25, 2021 UPDATE

    March 25, 2021 UPDATE

    Restrictions. The government approved on Thursday the new
    restrictions proposed by the Committee for Emergency Situations amid a rise in
    the number of Covid cases. In places with more than 4 cases per 1,000
    residents, movement is restricted at the weekend from 8 pm and shops close at 6
    pm. In places with more than 7.5 cases per 1,000 residents, these restrictions
    also apply during weekdays. Movement will, however, be allowed during Easter,
    until 2 am. The Bucharest Committee for Emergency Situations will meet on Friday
    to establish the new measures to contain the spread of the pandemic, said
    Bucharest prefect Alin Stoica. The meeting will take place after the
    publication of the government’s decision on the new measures. On
    Thursday Romania saw 6,651 new Covid infections, with total cases nearing 920,000
    and the death toll passing 22,700. Bucharest saw over 2,100 new cases, the
    highest daily figure since the start of the pandemic, which means an infection
    rate of 6.5 cases per 1,000 residents. 11 counties and Bucharest are currently
    in the red zone, with over 3 cases in every 1,000 people tested. More than 1,860,000
    people have received at least one vaccine dose since the start of the mass immunisation
    campaign in December last year.




    EU summit.
    Romanian President Klaus Iohannis is attending an on-line meeting of the
    European Council on Thursday and Friday. According to the president’s office,
    the EU leaders are discussing a coordinated EU response to the Covid pandemic,
    with emphasis on stepping up production, delivery and distribution of vaccines
    and preparation for the gradual relaxation of restrictions. The single market, the
    consolidation of the digital sector, the situation in the Eastern
    Mediterranean, relations with Turkey and are also on the agenda. A euro summit
    is also held on the sidelines of the summit to discuss the international role
    of the European currency with emphasis on the importance of solid economic
    policies to boost the resilience of the eurozone.




    Energy.
    Romania and six other EU member states signed a joined letter to the European
    Commission advocating the importance of nuclear energy in the Union’s present
    and future energy mix and calling for the further development of strategic
    investment projects in this area. The statement was signed by the prime
    ministers of Romania, Hungary, the Czech Republic, Poland, Slovakia and
    Slovenia and the president of France. The signatories voice concern over the
    fact that the development of nuclear energy is challenged by certain member
    states despite its contribution to the fight against climate change and the as
    yet untapped synergies between nuclear technology and renewable energy. They advocate
    the right of member states to choose their energy mix, a right which is
    currently strongly affected by EU tendencies to favour renewable energy sources
    over other low carbon technologies.




    Business. Prime minister Florin
    Cîţu said Romania is paying special attention to its strategic partnership with
    the United States at a meeting in Bucharest with a delegation of the American-Romanian Business Council,
    a government statement says. Talks also looked at ways to develop business in
    Romania, including as a result of the implementation of the national recovery
    and resilience plan. The delegation chaired by Eric Stewart, the executive
    president of the American-Romanian Business Council, also met foreign minister
    Bogdan Aurescu, who underscored the need to expand the US’ economic presence in
    Romania and the region. Talks also focused on the strategic regional projects
    promoted by Romania to connect the north and south of the Three Seas region,
    Rail2Sea and Via Carpathia, and how the US private sector and the US
    administration can get involved in their realisation. Eric Stewart said he was
    ready to present these projects to major US companies in the field of
    infrastructure.




    Protest.
    Hundreds of police workers staged rallies at several locations across Bucharest on Thursday, to protest against low
    salaries which, according to trade unionists, have not been raised since 2009.
    Unionists are demanding, among others, the update of their meal allowance,
    hazard pay and holiday vouchers. They also want better equipment and for more
    staff to be hired, especially at operations level. (CM)





  • March 13, 2021

    March 13, 2021

    COVID-19 On Saturday
    the Strategic Communication Group reported nearly 5,000 new COVID-19 cases in Romania,
    with 79 new deaths and over 1,200 patients in intensive care. The total number
    of infections so far is over 855,000, with the death toll standing at over
    21,400. As of March 14, Romania extends the state of alert by another 30 days,
    amid growing numbers of COVID-19 cases. All
    restrictions valid so far will be maintained, and a night curfew will be in
    place between 10 pm and 5 am, one hour longer than at present. Accommodation
    facilities in mountain resorts will only be allowed to receive guests at 70% of
    their capacity. Meanwhile, the vaccine rollout continues, with nearly 1.4
    million people immunised since late December, most of them with the Pfizer
    vaccine. Romania has
    temporarily suspended the use of an AstraZeneca vaccine batch, but continues to
    use doses from other batches. The decision came after several European
    countries reported severe side effects and even deaths among people who have
    received doses from the respective batch.




    PANDEMIC The World Health Organisation said there are no reasons not to use the AstraZeneca COVID-19 vaccine, after several European countries announced they had suspended it as a precaution, according to WHO spokesperson Margaret Harris. The European Commission calls on states to follow the advice of the European Medicines Agency (EMA), which says that so far nothing points to higher blood clot risks in people having received the AstraZeneca shots. Meanwhile, the “digital green passport project to be presented in Brussels on Wednesday will only take into account the COVID-19 vaccines authorised by the EMA, a senior EU official said on Friday. Four vaccines are authorised for use in the EU at this point–Pfizer/BioNTech, Moderna, AstraZeneca/Oxford and Johnson & Johnson. The Chinese vaccine Sinopharm, used in Hungary even by PM Viktor Orban, is not included, and neither is Russias Sputnik V, ordered by Hungary, the Czech Republic and Slovakia and under EMA assessment since March 4. Around the world, according to worldometers, over 119 million people have so far caught the virus. Some 95 million people recovered and more than 2.6 million died.




    ENERGY The Romanian energy minister Virgil Popescu announced he will be in Brussels on Monday and Tuesday, to discuss the restructuring of the Oltenia Power Compound. In December, the Romanian government notified the European Commission of the restructuring plan for the power production unit, which included state aid. On February 5, the EC announced launching an in-depth investigation into the state aid measure. The Oltenia Power Compound needs the Commissions approval by the end of April, if it is to receive state aid enabling it to pay the CO2 emission certificates for last year.




    FRIGATE The Romanian frigate ‘Regina Maria’ Saturday joined the Standing NATO Maritime Group Two (SNMG-2), operating in the Black Sea. The frigate, with a crew of 238, will carry out NATO monitoring missions along with 5 other vessels from Bulgaria, Greece, Spain and Turkey, as part of SNMG-2, subordinated to the Allied Maritime Command (MARCOM).




    DRUGS Romanian prosecutors with the Directorate Investigating Organised Crime and Terrorism and police officers with the Organised Crime Brigade seized over 1 kilo of cocaine and nearly 4,000 Ecstasy pills in Brasov, as part of a high-risk drug trafficking investigation. Eight people were apprehended, and for 6 of them the court has issued 30-day arrest warrants.




    HANDBALL The best Romanian womens handball teams, SCM Râmnicu Vâlcea and CSM Bucharest, are playing today against each other in the second leg of the Champions League eighth-finals. In the first leg, the Bucharest side won 33 – 24, although playing away from home. The European handball federation has decided that all teams in the 2 groups should move on into the eighth-finals, as a result of many matches being postponed over the Covid-19 pandemic. (tr. A.M. Popescu)

  • January 1, 2021 UPDATE

    January 1, 2021 UPDATE

    COVID-19 Romania — In Romania the national anti-COVID-19 vaccination campaign will be resumed on Monday, with the vaccination of the medical staff working directly with COVID-19 patients. Since the start of the vaccination campaign, on December 27, over 10 thousand people have been vaccinated against COVID-19 in Romania, with common, minor side effects having been reported in 26 cases and general reactions in 22 cases. Almost 4 thousand new cases of contamination have been reported in the past 24 hours following the processing of 15,900 tests nationwide, the Strategic Communication Group announced on Friday. Until January 1, 2021, over 636,000 new cases of COVID-19 have been reported in Romania, with 566,365 patients having recovered. 74 deaths have been registered in the past 24 hours, taking the death toll to 15,800. 1,111 patients are currently in ICUs. The number of Romanian citizens from abroad contaminated with the new coronavirus reached 7,063 and 130 have died from the disease.



    Brexit – As of January 1, 2021 the UK is no longer part of the EU. The UK’s new status brings about major changes in the relation between the UK and the EU. The most important changes concern the European citizens who want to work and study in the UK. 4 million EU citizens are living in the UK of whom almost 600,000 are Romanians. The great majority of EU citizens have asked for and received the right to stay in the UK after Brexit, which means that their rights are protected. The situation is different for those European citizens who intend to move to the UK in the future. Those who want to work in the UK will need a visa. Visas will be paid for and will be granted according to certain criteria. The Romanian and European students who want to study in the UK starting with the next academic year will also need visas and tuition fees will be considerably higher. The EU citizens who want to visit the UK as tourists do not need a visa if their stay is not longer than 6 months. The people who received criminal sentences higher than one year in prison may be denied entry into the UK as of January 1.



    EU presidency – Portugal took over the six-month rotating presidency of the European Union from Germany on January 1. Its main objectives are to prepare for the post-Covid-19 recovery and to complete the procedures aimed at implementing the Resilience and Recovery Facility. Lisbon will focus on five major domains: social Europe, green Europe, digital Europe, global Europe and resilient Europe. The social agenda will be at the top of the list of priorities, as a main pillar of the European response to COVID-19. Other issues on the agenda of the Portuguese presidency are the EUs relationship with the UK after Brexit, gender equality, the fight against discrimination, poverty and social exclusion and the protection of vulnerable groups.



    New Year celebrations — The whole world celebrated the New Year in the context of the new coronavirus pandemic. Open air parties were cancelled and people stayed at home, observing the quarantine or restrictive measures imposed by the authorities in a move to stop the spread of the disease. Many traditional events on the New Year such as fireworks shows and concerts were broadcast online. The first to welcome the new year 2021 with fireworks shows were the inhabitants of the island countries of Kiribati and Samoa in the Pacific Ocean followed by New Zealand and Australia where the traditional fireworks shows took place without spectators. In Europe, most people stayed at home and watched TV while in the US 2020 the year of the pandemic ended in the spirit of the past 10 months, with restrictions, social distancing and bans on any kind of meeting or gathering. Romanians also missed the traditional New Year open air concerts. Most Romanians welcomed the New Year at home while others chose to travel. In the country, the top destinations for the New Year parties were the resorts on the Prahova Valley (south) and in Maramures county (north), Bukovina (northeast), the Black Sea Coast and the Danube Delta. As regards foreign destinations, Romanians chose the Maldives and Zanzibar.



    Energy – As of January 1, 2021 Romanias electricity market has been liberalized, which means that prices are no longer set by the state, but on the stock exchange. As compared to the gas market liberalization as of July 1, 2020, when consumers benefited from better prices, the energy market liberalization will bring about higher bills which might increase by up to 26% for certain consumers. Analysts accuse the authorities of having mismanaged the situation, by failing to inform the population properly. Before liberalization there were approximately six million household consumers on the regulated market in Romania that benefited from the lowest prices on the market, but after January 1, unless they sign a new contract with a supplier, they risk being automatically transferred by the current supplier on a universal service contract, which is the most expensive on the market. According to an analysis made by the Smart Energy Association, active consumers, namely those who got informed and signed a contract with a supplier, will have their energy bills increased by an average 5%. On the other hand, passive consumers that did sign a new contract will pay energy bills higher by 26%.



    Messages — The Romanian President Klaus Iohannis thanked the Romanian citizens in the traditional New Years message for the effort they made in 2020, a year marked by the COVID-19 pandemic. Klaus Iohannis underlined that the entire country is looking with hope and confidence to the New Year 2021. The Prime Minister Florin Cîţu has promised Romanians that the government will do its best to re-launch the economy this year, after 2020, a difficult year for the country. The Speaker of the Chamber of Deputies, Liberal Ludovic Orban, has said in his New Years message that 2020 was perhaps the hardest year in Romanias recent history, but that he hopes that by mid-2021 vaccination will end the pandemic. The Speaker of the Senate, Anca Dragu, has stated, in her New Years message posted on her social media page, that she wants 2021 to be a year of recovery, when they are going to start to rebuild a better Romania ‘for us and the future generations’. Praying together, being kind and cooperating in doing good deeds can work wonders, turning fear into courage and hope, said the Patriarch of the majority Romanian Orthodox Church, Daniel, at the religious service held to mark the New Year. (tr. and update by L. Simion)

  • The Week in Review 6-12 December

    The Week in Review 6-12 December

    The political scene after the
    parliamentary elections


    The future Parliament after last Sunday’s elections
    will include the Social Democratic Party (PSD), the National Liberal Party (PNL),
    the USR-PLUS Alliance, the Alliance for the Union of Romanians (AUR), who will
    be in Parliament for the first time, the Democratic Union of Ethnic Hungarians
    in Romania (UDMR) and the group of national minorities other than Hungarian.

    The
    recent elections saw the lowest voter turnout in parliamentary elections in Romania’s democratic history,
    with a little over 33%. The coronavirus pandemic was one of the explanations
    proposed for this situation, as thousands of new infections are reported every
    day and the daily death toll hasn’t dropped below 100 in a long time. This is
    in fact the reason why the government has decided to extend the state of alert
    for a further thirty days, a measure that has been in place since mid May. The decision
    was taken by the defence minister Nicolae Ciucă, who is also
    acting as interim prime minister following the resignation of Ludovic Orban as
    a first political consequence of the elections. The latter chose to step down
    and lead as president of the Liberal Party the negotiations for the creation of
    a parliamentary majority to support a centre-right government.

    President Klaus
    Iohannis has invited the representatives of political parties to consultations
    on Monday. The talks will begin with the Social Democratic Party, which
    obtained the highest score in the elections, 30%. The surprise was the result
    obtained by the Alliance for the Union
    of Romanians who, one year after it was founded, managed to win more than half
    a million votes to become the fourth largest party in Parliament. Its leaders describe
    themselves as radicals, supporters of values such as the traditional family,
    the nation and the Christian faith. Abroad, where Romanian nationals were able
    to vote over the course of two days, some 265,000 people cast their votes.



    Romanian president attends European Council
    meeting


    President
    Klaus Iohannis attended a meeting of EU leaders on Thursday and Friday where an
    agreement was reached over the EU budget for the 2021-2027 period and the post-Covid
    19 economic recovery fund of more than 1,800 billion euros. The deal had previously
    been blocked by Poland and Hungary, who were opposed to making EU funding
    conditional on the rule of law. The compromise reached implies the involvement
    of the European Court of Justice. Under the deal, Romania is entitled to 46.7
    billion euros to fund various policies, from agriculture, cohesion and rural
    development to infrastructure and transport. It also benefits from 33.5 billion
    euros under the recovery fund in the form of grants and loans.

    President
    Iohannis said Romania was ready to use the money for reform and investment in
    key sectors. Another subject discussed by the European Council was the
    reduction of greenhouse gas emissions by at least 55% by 2030. The Romanian
    president called for the creation of a flexible framework allowing all member
    states to meet efficiently their climate change goals. EU leaders also agreed
    that the epidemiological situation remains worrying despite the prospect of vaccination,
    so efforts must continue to prevent a new infection wave.



    Romania
    to host EU new cyber centre


    Romania
    will host the European Union Cybersecurity Competence Centre aimed at
    developing high technology and innovation. The centre will distribute EU and
    national funds for cybersecurity research projects around the Union. Seven states
    were in the race to host the centre, with Bucharest being chosen over cities
    like Munich, Warsaw, Vilnius and Luxembourg. Romanian foreign minister Bogdan Aurescu said Romania’s hosting the
    EU cyber centre is a success and the result of intense diplomatic efforts, including
    at top level. This is the first EU agency to be hosted by Romania.


    Romanian-American
    cooperation in the energy field


    An
    agreement was signed on Wednesday between Romania and the United States about
    cooperation on nuclear-energy projects in Cernavodă (south-east of Romania). The
    terms of the agreement were established in October during a visit to the US by
    the economy minister Virgil Popescu, when a memorandum of understanding was
    also signed with the Export-Import Bank of the United States (Eximbank). To reach
    its low-carbon and energy security targets, Romania wants to modernise one of
    its nuclear reactors in Cernavodă and build another two, a project estimated at
    8 billion dollars. Eximbank is to provide up to 7 billion worth of funding for
    this project which, when in operation will be able to supply around 40% of
    Romania’s energy demand, double than at the moment. The US may also finance the
    Black Sea gas extraction. Following the unblocking of Black Sea investment, Romania
    may become the biggest gas and energy producer in Europe. (CM)

  • Romanian – US cooperation in the field of energy

    Romanian – US cooperation in the field of energy

    Romania has huge economic potential, and it is a very good place for investors, not only from the US, but from around the world, the US Ambassador to Romania Adrian Zuckerman said early this month, voicing hopes that the economic partnership between the 2 countries would catch up with and even outperform the military one.



    One of the key areas where Washington and Bucharest work together is the field of energy. In order to meet its energy security and decarbonisation goals, Romania intends to upgrade one of the reactors of the Cernavoda nuclear power plant and build another 2.



    The project is estimated to cost 8 billion US dollars, and the US Export-Import Bank will provide up to 7 billion USD for its funding. Once completed, the project will enable the Nuclear Power Plant in Cernavodă, south-eastern Romania, to cover around 40% of the countrys electricity needs. This is double the rate covered at present, says Cosmin Ghiţă, general manager of Nuclearelectrica:



    Cosmin Ghiţă: “With Units 3 and 4, this means doubling the current nuclear power capacity, and this is only one of the benefits. In Romania, the nuclear industry provides around 11,000 jobs. Once these projects are started, the number of jobs could reach over 20,000. As for the benefits of revamping Unit 1, these are evident: operating this facility for another 30 years, at less than half the cost of a new reactor.



    The agreement between Romania and the US on cooperation in the Cernavoda nuclear power projects was signed in Bucharest on Wednesday by the Romanian economy minister Virgil Popescu and the US ambassador, in the presence of the interim PM Nicolae Ciucă.



    The terms of the documents had been agreed on in early October, during the economy ministers visit to the US, when the memorandum of agreement with Exim Bank was also signed.



    This week, the USA Exim Bank president Kimberly Reed went to Cernavodă, and in a subsequent meeting with minister Virgil Popescu, he emphasised that the institution is ready to provide funding to Bucharest for other projects as well. The US might also fund the development of natural gas in the Black Sea.



    Romgaz is currently negotiating the acquisition of the US company Exxons stake in the Neptun Deep offshore project, and once investments in the Black Sea are restarted, Romania may become Europes largest natural gas and energy producer.



    Ambassador Adrian Zuckerman, attending the meeting, emphasised the importance of Romania securing its energy independence and added that the visit made by the Exim Bank president highlights the US commitment to Romania. (tr. A.M. Popescu)

  • Romania’s 10-year plan on energy and climate

    Romania’s 10-year plan on energy and climate

    The European Commission has recently sent to Bucharest
    an analysis of Romania’s National Plan on Energy and Climate Change, 2021-2030.
    The analysis has identified several flaws, while the Commission has offered recommendations
    to that end. Romania’s plan, which has come under close scrutiny as of late,
    defines the way Romania will take action in the next decade, especially in the
    field of energy, against the backdrop of a global climate crisis. Having
    examined several chapters, the Brussels officials criticized the authors’ lack
    of ambition, since the set targets they have come up with were below the standards recommended by the
    European Union, even though those standards were a little bit higher as
    compared with the standards set in the previous reports. Accordingly, as
    regards renewable energy, the Commission has found out Romania continued to
    maintain a low-level set target, standing at 3.7%, although the country’s
    potential was bigger than that. Estimates have revealed that by 2030, Romania
    could have reached a renewable energy level standing at 34%. Even if the plan
    details the measures targeting the increased importance of green energy in the
    fields of electricity, heating and transport, the European experts have pointed
    to the fact that there was no clear-cut quantification of that.


    Greenpeace Romania
    climate and energy campaign coordinator, Vlad Catuna:


    ”Romania’s strategy in the field of
    energy and climate basically focuses on fossil fuels and nuclear energy,
    instead of focusing on green renewable sources of energy, given that Romania,
    Europe and the whole world are facing the effects of climate change. And when I
    say the effects of climate change, it is not only the melting of glaciers or
    the rise of ocean water level that I have in mind, but what I do have in mind
    are the effects we are beginning to feel also here, in Romania. And at that,
    what we have in mind are the dried-up lakes of Nuntasi and Iezer or southern
    Oltenia, where desertification is in full swing, if we take into account that
    we had to cope with storms and heavy downpours in the summer, or the drought we
    also had to cope with. For Romania, this year was one of the droughtiest ever
    to have been reported for this country. Against this backdrop, where we have to
    cope with such effects, Romania must come up with an ambitious plan, where
    green energy should be prioritized at the expense of dirty energy. In effect,
    when coal is still mentioned in Romania’s part of the energy mix, or when we
    come up with projects prioritizing natural gas extraction in the Black Sea,
    that means we have a very serious problem.”


    The transition to green energy is not an easy process,
    nor is it a cheap one. Everybody knows ecology is expensive and proof of that
    is the price of the bio products on display on shelves in specialized shops.
    Romania’s great advantage is that the European Union finances these
    transformations, moreover, Romania has a good potential, mainly because of its
    geographic position.

    Vlad Catuna:


    We have a tremendous potential
    in terms of wind power, mention is being made of the offshore renewable energy
    potential of the Black Sea, and we can also speak about a tremendous solar
    energy potential in the southern part of the country. You’re quite right when
    you say: yes, we need money and the good thing is that the European Commission,
    through its European Green Deal, offers Romania large sums of money for this
    kind of energy transition. We want it to be one from fossil fuels straight to
    the green energy. It will be very expensive and very difficult for us to go
    through an intermediary transition, through a kind of transition, where
    initially, we rely on gas instead of passing straight to renewable green
    energies. And that, because we ‘ve got time on our hands, we have the necessary
    resources, we have financing from the European Commission and we have the
    potential proper to implement such an energy transition.


    With respect to another chapter, that of energy
    efficiency, the European Commission has found out Romania has enhanced its
    level of ambition regarding the national contribution to the 2030 community
    objective, as compared to the plan project, with is most welcome. However, the
    contributions to the primary energy consumption and the final energy
    consumption are not at all ambitious. As for the positive side, the final plan
    includes useful info on buildings, pointing to the intention of going beyond a
    renovation rate standing at 3 or 4%. However, according to the European
    officials, Romania has not as yet come up with a long-term renovation strategy.
    The Commission also mentioned the fact that it encouraged measures regarding
    the energy efficiency of the heating networks. Eventually, the plan does not
    offer sufficient info on the quality of air and the interaction between the
    quality of air and the atmospheric emissions policy. Yet there are also
    examples of good practices, mainly due to the fact that the document includes
    elements of the European Green Deal for agriculture, mainly through the
    promotion of ecological farming and the limited use of fertilizers. Greenpeace
    Romania climate and energy campaign coordinator, Vlad Catuna, sounded upbeat
    about all that, stating things will no longer be as they are at present,
    because the new European Climate Law will come up with much more ambitious set
    targets. Once implemented, the law will compel the Romanian authorities to step
    up the energy transition process, to renounce coal and gas and invest in green
    energy.


    (Translation by Eugen Nasta)






    —–



  • November 21, 2020 UPDATE

    November 21, 2020 UPDATE

    COVID-19 The total number of COVID-19 cases in Romania since the start of the pandemic passes 412,000. On Saturday, almost 9,700 new cases were reported. Another 160 coronavirus-related deaths were also confirmed, taking the death toll to over 9,900. A further 1,132 patients are currently in intensive care. Almost 70% of the total number of COVID-19 patients in Romania have recovered. Local lockdowns were introduced in several towns and villages with large number of cases, including around the capital Bucharest. Recent reports point to a plateau phase in the epidemic, president Klaus Iohannis said. He announced he would have a meeting on Monday with the health, interior and defence ministers, to clarify aspects related to the anti-COVID vaccination campaign, which he sees as a matter of national security. He added the latest data allows for “moderated optimism and called for strict observance of the containment measures introduced by the authorities.



    PANDEMIC The total number of Covid-19 cases worldwide is now over 58 million, with nearly 1.4 million deaths and over 40 million people having recovered from the disease, according to Worldometers.info. The US is the worst hit country, with over 12 million cases and at least 260,000 deaths. The American company Pfizer and their German partner BioNTech announced they have requested emergency authorisation of their COVID-19 vaccine in the US. The US Food and Drug Administration says the goal is to have the vaccine approved in the first half of December. The 2 companies claim to be able to supply the vaccine within hours of its approval. In turn, the EU may approve 2 vaccines by the end of December, the one produced by Pfizer/BioNTech and the one produced by Moderna. Over the last 24 hours, the number of infections has gone up in Ukraine, Russia, North Macedonia, Croatia, Italy and Spain. Madrid is to endorse on Tuesday a large-scale vaccination plan covering a large part of the population by next summer. The Madrid region will be under lockdown in the first half of December. The Italian government also announced plans to ease restrictions prior to the winter holidays, with tougher measures to be introduced between Christmas and New Years Eve.



    NUCLEAR The European Commission approved the cooperation agreement signed by Romania with the USA in the field of nuclear energy, the Romanian Economy Minister Virgil Popescu said in a Facebook post. He added that 7 billion USD worth of funding has been obtained from the US for the revamping of Cernavoda Unit 1, the building of Units 3 and 4 and for putting together projects in the field of energy. Virgil Popescu says the agreement will ensure Romanias energy security, investments and jobs in many sectors. A consortium will be set up to this aim, comprising companies from the US, Romania, Canada and France.



    FILM The 5th BUZZ International Film Festival, based in Buzau and devoted to European cinema, is held exclusively online as of today. Until November 26, film lovers are invited to enjoy Romanian and European films free of charge. According to the organisers, the Festival has 4 competition sections: fiction features, documentaries, short films and student films. Most of the works in the competition are screened for the first time in Romania. This years surprises include Radu Ciorniciucs documentary, “Home, awarded in major international festivals. In the BUZZ Women section, the highlights include ‘Creativ’, a documentary by Ioana Grigore, and Nora Fingscheidts ‘System Crasher,’ winner of the Silver Bear – “Alfred Bauer Award in Berlin in 2019.



    G20 The online summit of the worlds 20 biggest economies, G20, hosted for the first time by Saudi Arabia, started on Saturday. The main topic on the agenda is the fight against the Covid-19 pandemic. Saudi King Salman told G20 leaders that they must work towards affordable and equitable access to vaccines and other tools to combat the COVID-19 pandemic, including for poorer nations. On Friday, the president of the European Commission Ursula von der Leyen voiced hopes that the G20 summit due this weekend will be “a new beginning for multilateralism. Ursula von der Leyen said she would call on the Unions G20 partners to step up economic efforts to provide access to COVID-19 vaccine and treatment for poorer countries as well. The goal is to purchase 2 billion vaccine doses for countries with below-average revenues, the EC president said. (translated by: A.M. Popescu)

  • September 5, 2020 UPDATE

    September 5, 2020 UPDATE

    Coronavirus. 1,269 new daily
    coronavirus cases were reported on Saturday in Romania, taking the infections
    number to almost 94,000. 38 new deaths were also reported, which raises the
    death toll to 3,850. The highest number of new cases were in Bucharest, 352,
    followed by Iasi and Bacau counties. 476 people are in intensive care. Among the
    Romanian nationals living abroad, 6.599have
    contracted the virus, mostly in Germany, Italy and Spain, and 126 have died.




    Forum. The
    European Union is still divided with respect to defence and military industry -
    was the conclusion of discussions on day two of the Black Sea and Balkans
    Security Forum organised in Bucharest by the New Strategy Center with the support
    of the foreign affairs
    and defence ministries. Talks looked at all types of security risks and threats
    in the Black Sea region and the Balkans, including those arising in the context
    of the coronavirus pandemic. On day one of the forum on Friday, the Romanian
    defence minister Nicolae Ciuca warned that the Black Sea is one of NATO’s most
    vulnerable regions and that the entire region has become the place where NATO’s
    credibility and defence and deterrence posture are most frequently tested. Ukraine’s
    defence minister Andriy Taran, who attended the forum,
    requested Romania’s expert assistance to improve Ukraine’s defence planning and
    capabilities and boost the interoperability of Ukraine’s troops with those of
    NATO. On Saturday, the
    defence ministers of Romania and Ukraine signed an inter-governmental agreement
    for technical and military cooperation.


    UN. The Romanian foreign minister
    Bogdan Aurescu on Friday addressed an informal UN Security Council meeting held
    online on the human rights situation in Belarus, a meeting initiated by Estonia
    and backed by Romania alongside the UK, the US, Canada, Denmark, Iceland,
    Latvia, Lithuania, Poland and Ukraine. Aurescu said Romania would continue to
    call on the Belarus authorities and their supporters to put an end to
    repression and intimidation, to engage in genuine dialogue with the opposition
    and civil society, to stop unfounded accusations against neighbouring states
    and to act responsibly to achieve social peace and prosperity based on
    democracy and respect for fundamental rights in a free, independent and
    sovereign Belarus. Bucharest is also in favour of EU sanctions against those
    responsible for repression and for rigging the elections and is looking for
    ways to support civil society and the free press in Belarus, the Romanian
    minister also said.




    Energy. Romania exported on Saturday
    around 1,500 MW of electricity following a large production of wind energy.
    This form of energy accounted for more than 32% of the total amount of
    electricity generated on Saturday nationwide, while the country’s nuclear power
    plant accounted for 17%, its hydropower plants for some 17%, coal for 13%,
    photovoltaic systems for 9%, hydrocarbons for 9% and biomass for 0.5%. The
    large output of wind energy is the result of the strong winds in Constanta and
    Tulcea counties in the south-east, where most of Romania’s windmills are. Romania
    also exported wind energy on Friday, after a summer dominated by imports.




    Enescu competition. 13 young cellists
    from 54 participants reached the second stage of the George Enescu International
    Competition. The participants selected after the second stage will take part in
    the competition’s semifinal, which will be held on the 13th of May
    next year at the Romanian Athenaeum in Bucharest. This year’s edition of the
    George Enescu International Competition, which was due to take place between 29th
    August and 20th September, has been reorganised because of the
    pandemic into two separate events: the first two stages are held online in
    September, as initially scheduled, while the semifinals and the finals in each
    category will be held in May next year. The competition has brought together
    205 musicians from 39 different countries. 184 are in competition in the three
    instrument sections, namely violin, cello and piano, while 21 are in competition
    in the composition section.

  • 15 February 2020, UPDATE

    15 February 2020, UPDATE

    Conference. Romania’s goal to join
    the Schengen area was highlighted by acting prime minister Ludovic Orban at a
    meeting on Saturday with his Dutch counterpart Mark Rutte on the sidelines of the Munich Security
    Conference. He gave assurances that Romania is fully prepared and advocated for
    a boost of Dutch investments in the Romanian economy. The interim defence
    minister Nicolae Ciuca, who was also in Munich, spoke at a round table event about the
    need for careful monitoring of the security developments in the Black Sea area,
    emphasising the need to consolidate the NATO presence in the region. He also
    underlined the crucial strategic importance of the Black Sea area for
    European and Euro-Atlantic security. Dozens of heads of state, ministers, heads
    of businesses and representatives of international organisations and the
    academic community are in Munich to discuss security threats in the
    Euro-Atlantic area, the crises in its vicinity and the relationship between the
    European Union and NATO.






    Energy. The
    United States will finance energy projects worth 1 billion dollars in countries
    in Central and Eastern Europe that are members of the Three Seas Initiative to
    consolidate their energy independence from Russia, US Secretary of State Mike
    Pompeo said on Saturday at the Munich Security Conference. Our aim is to galvanise private sector investment
    in their energy sectors, said Pompeo. The Three Seas Initiative, launched
    in 2015, is a group of 12 EU states located between the Baltic, Adriatic and
    Black Seas, namely Austria, Bulgaria, the Czech Republic, Croatia,
    Estonia, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia and Hungary.
    The aim of the initiative is to consolidate cooperation among its members in
    areas such as energy, infrastructure and security, especially in the face of
    Russia, which some of these states view as a direct threat. Like the United
    States, the Three Seas Initiative states are opposed to the North Stream 2
    pipeline aimed at doubling the direct supply of Russian gas to Western Europe
    across the Baltic Sea, thus bypassing the eastern part of the continent. The
    United States has adopted sanctions against the companies associated with the
    construction of the pipeline, saying the project would increase Europe’s
    reliance on Russian gas and thus strengthen Moscow’s influence.




    Coronavirus. The death toll caused by the new coronavirus in continental
    China has exceeded 1,500, while the first death in Europe was reported in
    France. The victim is an 80-year-old Chinese tourist who has been in hospital
    in Paris since the end of January. A joint mission with China led by the World
    Health Organisation begins an outbreak investigation this weekend. One Romanian
    citizen of the 17 on board the cruise ship Westerdam that docked in Cambodia
    has been sent to Romania. The Romanian foreign ministry says all crew and
    passengers tested negative for coronavirus. In Bucharest, the health ministry
    says no case has been reported in Romania. However, a Romanian citizen from the
    Diamond Princess cruise vessel, found in the Japanese territorial waters,
    tested positive for the new pneumonia virus and was transferred to a Japanese
    hospital. Romania’s diplomatic mission in Japan is in contact with the Romanian
    citizen in hospital and the other Romanian nationals on board the vessel.




    Environment. Romania’s environment
    minister Costel Alexe and the European environment commissioner Virginijus
    Sinkevičius on Friday met in Brussels to analyse the solutions proposed by the
    Romanian government to close the infringement procedures triggered by the European
    Commission against Romania over illegal logging and its failure to finalise a
    national air quality control programme. The two officials also discussed issues
    related to biodiversity, the expansion of the Natura 2000 network, the
    development of the air quality monitoring system, waste management and
    environmental funding programmes, according to a statement by the Romanian
    environment ministry. The European Commission on Wednesday sent a letter to
    Romania urging it to properly implement the EU Timber Regulation, which
    prevents companies in this sector to place on the market products obtained from
    illegal logging. The European Commission has given Bucharest one month to take
    the necessary measures.




    Measles. Measles cases are on the
    rise in Romania, with 53 new cases reported this week. The total number of
    cases is 19,381, including 64 deaths. According to the National Centre for
    Surveillance and Control of Communicable Diseases, the new cases were located
    in five counties. Measles is a contagious disease that often leads to
    complications. One in four people developing measles needs hospitalisation and
    for one patient in 1,000 cases the disease is deadly. Prevention against
    measles is achieved through vaccination.




    Tennis. The Romanian tennis player Simona
    Halep, world no. 2, is seeded first at the WTA tournament in Dubai, the United
    Arab Emirates, worth 2.6 million dollars, and which gets under way on Monday.
    Halep plays straight into eight finals, where she will be facing the winner
    between Alison Riske of the US and Ons Jabeur of Tunisia. Halep won the Dubai
    tournament in 2015. Sorana Cirstea, world no. 69, will play against Germany’s Julia Goerges (31 WTA), while Ana Bogdan, world no.
    90, faces China’s Shuai Zhang (32 WTA). In other tennis news, another Romanian
    player, Patricia Tig,
    world no. 105, failed to qualify for the finals of the WTA tournament in Hua
    Hin, Thailand, being defeated by Poland’s Magda Linette, world no. 42, in the
    semifinals. (CM)

  • Natural gas market to be deregulated

    Natural gas market to be deregulated

    The Romanian energy sector underwent dramatic changes in 2019, according to data made public by the National Statistics Institute. In the first 8 months of the year, the country turned from an energy exporter into a net importer, and the natural gas and electricity output nosedived. Specifically, electricity imports went up 72.8%, gas imports rose by 85.7%, while electricity exports fell by 37.5%. The natural gas output saw a 2.4% decline and the electricity output dropped 3.4%.



    These negative changes in the energy sector are the effects of the controversial Government Order no. 114/2018, analysts say, explaining that distortions in the Romanian market pushed the natural gas price above the regional average, both for industrial consumers and for households. Here is the former president of the National Energy Regulatory Authority Niculae Havrilet, currently a secretary of state with the Energy Ministry:



    Niculae Havrilet: “Even for households, the regional average price is lower than in Romania, namely 12 euros per MW, 59-60 lei, which is below the 68 lei per MW, the gas price set for households under Order 114.



    The roughly 14 euro cap on natural gas prices for households, which was below the market price at the time, led to an increase of prices in the open market, pushing the prices charged to industrial consumers up to almost double the regional average. The increase rippled across the national economy throughout 2019, with prices for all products and services going up.



    Two months into its term in office, the Liberal Cabinet repealed in December the provisions in Order 114 concerning energy companies and caps on the prices charged by natural gas and electricity producers. The Government and the National Energy Regulatory Authority also decided that as of July 1 this year the state will fully deregulate the natural gas market.



    Unlike electricity prices, which will be liberalised next year, the decision to immediately deregulate prices in the natural gas sector was prompted by the favourable global context, in which Romania may bring its gas prices down to match international levels.


    (translated by: Ana-Maria Popescu)