Country Review

ROMANIA

After the restructuring process of Romanian economy in the last years Gross Domestic Product (GDP) has increased, so it is expected to continue to increase CO2 emissions in the future, but to a lower level than in 1989. Therefore, on short term Romania meets the international commitments concerning greenhouse gases (GHGs) reduction due to the severe recession caused by the transition to the market economy.

In the Romanian energy sector, as worldwide, it is both necessary and possible to:

• increase energy efficiency in energy production, distribution and end-use

• reduce carbon intensity of power sector by switching coal and fuel oil with natural gas

• promote policies aiming to cut down subsidies which encourage market imperfections

• research, develop and increase the use of renewable energy sources, (i.e. solar, wind, micro-hydro and biomass)

These approaches are technically and economically viable alternatives to the use of environmentally damaging conventional energy sources. Flexible mechanisms agreed by Kyoto Protocol could help Romania to attract investment with a long-term impact on emissions limitation and reduction during the transition towards free market economy.

Taking into account the dramatic decreasing of power production during the period 1989-2000, Romania will meet without any problems the national target set by Kyoto Protocol (8% reduction of GHGs during 2008-2012) compared with 1989.

New measures and regulations should significant increase the energy efficiency on the entire chain: resources, production, transport, distribution and consumption, targeting to a sustainable development. Concerted action aiming to increase energy efficiency at both supplier and consumer has to be set up.

Creating centers of excellence by implementing energy efficiency demonstration projects for both industrial projects and municipal projects could create the premises for the an enhancement of energy efficiency in the following technology areas: combustion efficiency heat recovery in industry, electrical motor controls and electrical efficiency, district heating systems and energy efficiency in buildings, energy efficient municipal lighting.

Currently, most energy savings programs and most renewable energy projects rely to a large degree on grant funds from multi-lateral or government agencies. This has limited renewables and efficiency largely to small-scale pilot projects, which in turn has engendered skepticism in the financial community and among many energy policy makers. If renewables and energy efficiency are to achieve widespread implementation, they cannot depend so heavily on subsidies.

Also, public awareness and his education concerning the energy efficiency enhancement and energy conservation could play a significant role in rational use of energy.