COMMISSION STAFF WORKING DOCUMENT Energy Union Factsheet Romania Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK Third Report on the State of the Energy Union
Date: 2017-11-23
Institutions: European Commission, Secretariat-General
Subjects: Romania, climate change policy, competitiveness, economic and social cohesion, energy cooperation, energy policy, innovation, investment, regional cooperation, single market

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 23.11.2017 SWD(2017) 409 final  COMMISSION STAFF WORKING DOCUMENT Energy Union Factsheet Romania Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK  Third Report on the State of the Energy Union  {COM(2017) 688 final} - {SWD(2017) 384 final} - {SWD(2017) 385 final} - {SWD(2017) 386 final} - {SWD(2017) 387 final} - {SWD(2017) 388 final} - {SWD(2017) 389 final} - {SWD(2017) 390 final} - {SWD(2017) 391 final} - {SWD(2017) 392 final} - {SWD(2017) 393 final} - {SWD(2017) 394 final} - {SWD(2017) 395 final} - {SWD(2017) 396 final} - {SWD(2017) 397 final} - {SWD(2017) 398 final} - {SWD(2017) 399 final} - {SWD(2017) 401 final} - {SWD(2017) 402 final} - {SWD(2017) 404 final} - {SWD(2017) 405 final} - {SWD(2017) 406 final} - {SWD(2017) 407 final} - {SWD(2017) 408 final} - {SWD(2017) 411 final} - {SWD(2017) 412 final} - {SWD(2017) 413 final} - {SWD(2017) 414 final}  
 
 
                              Energy Union –Romania 

  Romania 

                          Energy Union factsheet1 

1.  Macro-economic implications of energy activities 

Energy and transport are key sectors for the overall functioning of the economy as they provide an 
important input and service to the other sectors of the economy. Together the activity in these two 
sectors2 accounted for 10.5% of the total value added of Romania in 2015. Similarly, their share in 
total  employment3  was  6.6%  in  2015,  of  which  5.6%  in  the  transport  sector  and  1%  in  the  energy 
sector.  

(source: Eurostat) 

The  decarbonisation  of  the  energy  and  transport  sectors  will  require  significant  investments  and 
economic  activity  beyond  the  remit  of  these  sectors  themselves.  The  energy  transition  implies  a 
structural  shift  in  economic  activity.  Energy-related  investment  and  jobs  will  in  part  migrate  from 
traditional  fossil  fuel  based  activities  towards  construction,  equipment  manufacturing  and  other 
services related to the deployment of low carbon and clean energy technologies. At the moment, the 
efforts related to the low-carbon and clean energy transition in sectors beyond energy can only be 
partially quantified and are therefore not included in this analysis. 

1   The indicators used in this country factsheet largely build on indicators developed for the Commission Staff 
Working  Document  "Monitoring  progress  towards  the  Energy  Union  objectives  –  key  indicators" 
(SWD(2017)  32 
final)  https://ec.europa.eu/commission/sites/beta-political/files/swd-energy-union-key-
indicators_en.pdf  

2   Gross value added and employment in NACE sectors D-Electricity, gas, steam and air conditioning supply 

and H-Transportation and storage 

3   National accounts, Eurostat 

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                              Energy Union –Romania 

In the case of renewable energy sector, both the direct as well as the indirect effects on employment 
are  being  estimated.  According  to  EurObserv'ER,  in  2015,  the  share  of  renewable  energy  related 
employment in total employment of the economy in Romania was at about 0.21%. Employment was 
particularly  high  in  biomass,  small  hydro,  wind  and  photovoltaic  industries.  The  turnover  of  the 
renewable energy industry in 2015 in Romania was estimated at around EUR 1.57 billion, about 70% 
being attributed to the biomass related industry, 12.4% to biofuels industry and almost 10% to the 
wind industry. 

(source: EC based on Eurobserv'Er and Eurostat) 

The overall investment, as measured by the Gross fixed capital formation (GFCF)4, is usually taken as 
an  indication  of  the  level  of  efforts  and  challenges  in  the  energy  sector.  However,  data  is  not 
available for Romania for this indicator. 

In terms of trade, Romania is a net importer of gas, oil and coal, but it has reduced its deficit between 
2006  and  2015,  while  it  continues  being  a  net  exporter  of  electricity.  The  trade  deficit  in  energy 
products has fallen from about 3% of GDP in 2005 to around 1% in 2015, influenced by a decrease in 
the import of gas, which accounted for 1.3% of the GDP to almost nothing in 2015, and the decrease 
in the oil trade balance from 1.4% of the GDP to 0.9%. The trade surplus in electricity remained at 
around the same level in 2006 and in 2015.  

4   Gross fixed capital formation consists of resident producers´ acquisitions, less disposals, of fixed tangible or 
intangible  assets.  This  covers,  in  particular,  machinery  and  equipment,  vehicles,  dwellings  and  other 
buildings. It also includes foreign direct investment (FDI).  

2 

 
 
 
                                                            
                              Energy Union –Romania 

(source: Eurostat) 

2.  Energy security, solidarity and trust 

2.1. Energy Mix 

In  2015,  Romania's  gross  inland  consumption  was  of  32.4  Mtoe.  The  highest  shares  of  primary 
products in the energy mix were taken by petroleum products (27.6%) and gas (27.1%), followed by 
renewables (18.1%), solid fuels (17.9%)and nuclear (9.1%).   
In  comparison  to  the  average  energy  mix  in  the  EU,  Romania's  energy  mix  has  a  higher  share  of 
renewable  energy  (18.1%  vs  13%)  and  natural  gas  (27.1%  vs  22%)  and  a  lower  share  of  nuclear 
energy (9.1% vs 13.6%) and oil (27.6% vs 34.4%).  

 (source: Eurostat) 

2.2. Import dependency and security of supply 

The overall energy import dependency of Romania is low, reaching 17,1% in 2015, well below the EU 
average. The overall import dependency of Romania recorded a decrease of about 10.6 p.p. between 
2005  and  2015,  whilst  at  the  EU  level,  import  dependency  increased  by  1.9  p.p.  over  the  same 
period. 

Gas  import  dependency  has  considerably  decreased  since  2005.  In  2015,  it  is  of  1.8%,  a  level 
particularly low compared to most other EU Member States, reflecting the importance of domestic 

3 

 
 
 
 
 
     
                              Energy Union –Romania 

gas production and the decreased level of demand. Despite a low level of import dependency, the 
imported gas volumes are sourced predominantly (90.1%) from one main supplier, Russia. 

Romania imported 62.4% of its oil needs in 2015 from two sources: Russia (43.8%) and Kazakhstan 
(42.7%). Russia is also the dominant supplier of hard coal (72.4%).  

 (source: Eurostat) 

The Regulation concerning measures to safeguard security of gas supply requires that, if the single 
largest gas infrastructure fails in one Member State, the capacity of the remaining infrastructure is 
able to satisfy total gas demand during a day of exceptionally high gas demand. In accordance with 
the Regulation, Romania complies with this rule, reaching a N-1 value of 100.7%. 

(source: gas coordination group) 

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3.  Internal market 

3.1. Interconnections and wholesale market functioning 

3.1.1. Electricity 

 (source: EC based on ENTSO-E scenario 
outlook and adequacy forecast 2014) 

(sources: EC services based on Eurostat for the left graph  and based on 
Platts and European power exchanges for the right graph) 

In 2016, the electricity interconnectivity level5 of Romania was 7%, below the 2020 target of 10% set 
by  the  European  Council.  To  reach  the  10%  target  by  2020  several  Projects  of  Common  Interest 
should be implemented, notably an interconnection with Serbia and five internal lines for upgrading 
the  existing  national  electricity  system.  Romania  will  have  to  further  enhance  its  interconnection 
capacity with neighbouring countries (PCIs with Bulgaria and PECIs with the Republic of Moldova) to 
fully exploit its high generation capacity. 

Concentration  on  the  Romanian  power  generation  market  is  low.  Due  to  changes  in  legislation, 
transactions  performed  on  the  centralised  competitive  electricity  wholesale  markets  significantly 
increased. Wholesale electricity prices are below the EU average, however between 2013 and 2016 
recorded a decrease of 5.9 % compared with a decrease of 14.8% at EU level.  

Gas 

The  Romanian  gas  market  concentration  is  at  the  same  level  with  the  EU  average.  Despite  this, 
wholesale gas prices in 2016 were slightly higher than average EU gas prices, decreasing since 2013 
by 45.9% (i.e. EU average  decrease by  46.3%).  Gas  market competition  could  further improve with 
the completion in 2019 of the Bulgaria- Romania- Hungary- Austria (BRUA) CEF co-financed pipeline 
which will enable cross-border trade in gas at regional level and will stimulate gas market liquidity on 
the Romanian market. 

Legislative and regulatory measures have been taken to liberalize the wholesale gas market as of 1st 
of April 2017, through the Emergency Law 64/2016. 

5 The interconnectivity level is calculated as a ratio between import interconnection and net generation capacities 
of the country (i.e. the 2017 value is the ratio between simultaneous import interconnection capacity [GW] 
and net generating capacity [GW] in the country at 11 January 2017, 19:00 pm as resulted from ENTSO-E 
Winter Outlook 2016/2017) 

5 

 
 
 
 
                                                            
                              Energy Union –Romania 

(source: ACER for the left graph and EC services based on on Platts, gas hubs, Eurostat for the right graph) 

3.2. Retail electricity and gas markets 

3.2.1. Electricity 

In 2016, households' electricity prices in Romania were below the EU average. The share of taxes and 
levies in households electricity prices were in 2016 at around 8 p.p. below the EU average.   
The annual switching rate by consumers from one electricity supplier to another is close to zero.  
The liberalisation of electricity prices for households is planned for end 2017 whilst electricity prices 
for non-households are fully liberalised since 2014. 

(source: ACER) 

     (source: Eurostat) 

(source: Eurostat) 

3.2.2. Gas 

In 2016, households' gas prices in Romania were much below the EU average. Nevertheless, between 
2013  and  2016,  average  band  retail  gas  prices  for  households  increased  by  5.2%,  while  at  the 
wholesale  level  they  decreased.  This  increase  at  retail  level  can  be  partially  explained  by  a  49% 
increase in taxes and levies.  

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                              Energy Union –Romania 

Gas prices for non-households are fully liberalised since the beginning of 2015. The liberalisation of 
gas prices for households is planned for 2021. 
Due to the negative or slim margins allowed by price regulation, suppliers are discouraged to making 
offers outside their supply areas, therefore consumer choice is in reality often very limited, and this 
translates into very low switching rates (i.e. around 0% in 2015).  

(source: ACER) 

      (source: Eurostat) 

(source: Eurostat) 

3.2.3. Market performance indicators 

According to the periodical survey of DG JUST, the Romanian consumers are less satisfied than the 
EU average about the services received on energy retail markets.  

(source: DG JUST survey) 

3.3. Energy affordability  

In Romania, the share of energy in total household expenditure of the lowest quintile of population is 
among the highest in the EU, i.e. at around 15% as comparing to 8.6% at the EU average. The part of 
population unable to keep home adequately warm decreased significantly (-18.7%) during the period 
2005-2015 reaching 27.3% (above the EU average of 22.7%). This can be explained by low purchasing 
power but also by low energy efficiency standards of residential buildings. 

7 

 
 
 
 
 
 
 
 
 
 
                              Energy Union –Romania 

 (source: ad-hoc data collection of DG ENER based on HBS with the support of Eurostat and national statistics) 

4.  Energy efficiency and moderation of demand 

Romania  reduced  its  primary  energy  consumption  from  36.7  Mtoe  in  2005  to  31.3  Mtoe  in  2015. 
Final energy consumption decreased from 24.7 Mtoe in 2005 to 21.9 Mtoe in 2015. Primary energy 
intensity  in  Romania  remains  above  the  EU  average,  but  has  improved  more  than  most  other 
Member  States  since  2005.  Final  energy  consumption  per  capita  in  households  is  below  the  EU 
average. In terms of implementation of the Energy Efficiency Directive, Romania started with some 
delay but made progress both in 2015 and 2016.  

(source: Eurostat) 

In 2015 in Romania, the residential sector was the biggest energy consuming  sector representing a 
33.7% share in the total final energy consumption, which is well above the EU average (i.e. 25.4%). 
The  residential  sector  is  followed  by  industry,  representing  29.6%  of  the  total  final  energy 
consumption (slightly above the EU average of 25.3%). The transport sector comes on the third place 
with 25.5% of the total final energy consumption (well below the EU average of 33.1%). The energy 
consumption of the services sectors in Romania are below the EU average, with a share in total final 
energy consumption of 8%. 
For  the  period  2014-2020  Romania  allocated  significant  amounts  of  EU  Cohesion  policy  funds  for 
energy  efficiency,  in  particular  for  the  residential  sector.  This  is  expected  to  improve  the  energy 
performance of buildings, and reduce their energy consumption. 

8 

 
 
 
 
 
 
                              Energy Union –Romania 

(source: Eurostat) 

Between  2005  and  2015  the  energy  intensity  in  industry  decreased  significantly,  with  an  average 
annual change of 6.3%, more than triple than the EU average of 2%. In the service sector there was a 
slight decrease of energy intensity (by 0.9% annual average change, similar to the EU-28). Over the 
same period of time, the energy consumption per square meter and climate corrected of Romanian 
households decreased by 2.8%, more than the EU average of -2%), but it remains higher than the EU 
average.  

(source: Eurostat)  

      (source: Eurostat) 

  (source: Odyssee database) 

Between  2005  and  2015,  the  final  energy  consumption  in  transport  recorded  an  average  annual 
increase  of  2.8%,  just  as  GDP  over  the  same  period.  Behind  the  increase  by  28.2%  in  energy 
consumption  in  transport,  divergent  trends  could  be  observed  over  this  period:  while  passenger 
transport activity increased by 37.4%, freight transport activity decreased by 25.8%. 

9 

 
 
 
 
 
 
 
 
 
 
 
 
 
                              Energy Union –Romania 

(source: Eurostat)  

        (source: Eurostat and DG MOVE pocketbook) 

The  share  of  collective  land  transport  in  total  transport  is  still  higher  than  the  EU  average,  but  it 
decreased  over  the  last  decade  (-4.4  p.p.  in  2015,  as  compared  to  2005),  indicating  an  increase  in 
private transportation use.   

(source: Eurostat)  

With  the  adoption  of  the  General  Transport  Master  Plan  in  October  2016,  the  efforts  of  the 
Romanian authorities are now focused on its implementation, including increasing the absorption of 
the  European  funds,  by  rendering  the  investments  in  infrastructure  more  efficient.  The  Ministry  of 
Transport will benefit from the expertise of the EIB through technical assistance projects in order to 
improve  the  management  capacity  of  European  funds  and  the  preparation  and  implementation  of 
major  transport  infrastructure  projects.  Among  the  most  significant  transport  projects  currently 
under way is the motorway project Sibiu-Pitesti.  

An important element of the reform of the transport sector is the on-going restructuring of the road 
and  rail  agencies.  The  newly  created  Authority  for  Railway  Reform  will  focus  on  restructuring  the 
national rail network and the recovery of the rail transport by increasing its competitiveness. 

In the field of rail passenger transport a positive development can be noticed, as regards application 
of  EU  railway  law.  Romania  notified  its  new  railway  law  transposing  the  Single  European  Railway 
Area Directive in 2016. 

10 

 
 
 
 
 
 
 
 
 
 
             
                              Energy Union –Romania 

5.  Decarbonisation of economy 

5.1. GHG emissions 

The  GHG  emissions  have  been  reduced  by  53.9%  since  1990,  more  than  twice  the  EU28  average 
reduction over the same period.  

Romania has decreased its non-ETS emissions by 4% between 2005 and 2016. According to the latest 
national  projections  and  taking  into  account  existing  measures,  Romania  is  expected  to  reach  its 
2020 target with about 18 p.p. margin. 

(source: EC and EEA)   

In  2015,  the  GHG  emissions  per  capita  in  Romania  were  well  below  the  EU  average.  The 
energy/power  industry  sector  was  the  largest  emitting  sector  in  2015  (35.3%  of  total  emissions) 
followed  by  industry  including  manufacturing  industries  and  construction  category  (20.9%)  and 
agriculture including agriculture / forestry / fishing category (16.9%).      

(source: EC and EEA)   

Preliminary accounts under the Kyoto Protocol for Romania show overall removals of -1.0 Mt CO2-eq. 
as  an  annual  average  in  the  period  2013-2015.  For  comparison,  the  annual  average  of  the  EU-28 
accounted  for  removals  of  -119.0  Mt  CO2-eq.  It  should  be  noted  that  in  this  preliminary  simulated 

11 

 
 
 
 
 
 
                              Energy Union –Romania 

accounting exercise, removals from Forest Management did not exceed the accounting cap. Romania 
is the only EU Member State with accounted removals by Revegetation.  

Emissions by Deforestation are notably higher than very limited removals by Afforestation. Removals 
by  Forest  Management,  of  nearly  the  same  quantity  as  emissions  by  Deforestation,  make  up  the 
highest share among all removals, followed by removals by Revegetation. Overall, there is no trend in 
removals; in fact all activities show no particular trend over the course of the three-year period.  

Note: Forest Management credits are capped and presented as yearly averages when the total Forest 
Management credits of the considered period exceed the simulated cap over the same period. 
(source: EC and EEA) 

CO2 emissions in transport and alternative vehicles 
In Romania, the CO2 emissions from road transport were in 2015 almost 44 % higher than in 1990, 
reflecting  the  consistent  increase  of  passengers  and  freight  traffic  when  moving  towards  a  market 
economy. Nevertheless, between 2005 and 2016 the average CO2 emissions for new cars decreased 
over the last years, but at a slower pace than at the EU average (-21.2% vs. -27.3%).  

The emission reduction may be partly due to the a Programme for Renewing the National Car Fleet 
(“Rabla”)  that  Romania  has  been  implementing  for  12  years  now.  In  2016  a  new  component  was 
added to the programme providing support for the purchase of hybrid or electric cars even without 
the replacement of an older one. Moreover, Romania launched a complementary project to further 
develop the infrastructure for the usage of such cars.  

(source: European Environment Agency) 

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                              Energy Union –Romania 

The share of electric cars in total sales on the Romanian market is very small, around 0.06% of total 
cars sales in 2015 (i.e. 22 petrol-electric cars and 27 electric cars).  

Over the last three years the number of electric charging points in Romania has increased from 15 
units in 2014 to 63 units in 2016. 

(European Environment Agency)  

      (European Alternative Fuels Observatory) 

Directive  2014/94/EU  on  the  deployment  of  alternative  fuels  infrastructure  calls  upon  Member 
States  to  "adopt  a  national  policy  framework  for  the  development  of  the  market  as  regards 
alternative  fuels  in  the  transport  sector  and  the  deployment  of  the  relevant  infrastructure".  The 
Directive sets out the obligation for Member States to "notify their national policy frameworks to the 
Commission by 18 November 2016".  

The national policy framework is crucial to the creation of the conditions for the uptake of alternative 
energies  in  transport  and  to  enabling  Member  States  to  reach  the  objectives  they  set  themselves 
through the 2030 Energy and Climate framework and the EU's commitments at COP21.  

The Romanian authorities are going to adopt the national policy framework and to promote it though 
a  legal  act  around  mid-November  2017.   Nevertheless,  Romania  still  has  to  notify  the  Commission 
that  it  fulfilled  its  obligations  under  Article  3(7)  of  Directive  2014/94/EU  on  the  deployment  of 
alternative fuel infrastructure.   

5.2.  Adaptation to climate change 

In  2016,  Romania  adopted  its  2016-2030  National  climate  change  and  low  carbon  growth  strategy 
and  an  associated  2016-2020  national  action  plan  on  climate  change  –  each  of  them  with  distinct 
adaptation  components.  The  sectors  covered  are:  agriculture  and  rural  development,  water 
resources,  infrastructure  and  urban  planning,  transportation,  industry,  energy,  tourism,  forestry, 
biodiversity,  education,  insurance,  public  health  and  emergency  response  services.  Reports  on  the 
implementation  of  the  NAS/NAP  have  so  far  not  been  published.  Actually,  apart  from  the  regular 
implementation progress report on the action plan, which is to be provided according to the strategic 
environmental assessment permit, no specific monitoring framework has been provisioned. 

13 

 
 
 
 
 
 
 
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5.3. Taxes on energy and transport and fossil fuel subsidies 

Romania is close to the EU average in terms of energy and transport taxation as a proportion of the 
GDP  (both  around  2.4%  in  2014).  This  also  represents  an  increase  compared  to  2007  by  0.4  p.p. 
Energy taxes are the main component of this revenue (2.2%), whilst only 0.3 % comes from taxation 
on  transport  (excluding  fuel).  In  2014,  transport  fuel  taxation  accounted  for  a  higher  share  of  tax 
revenue in Romania than in the EU average, whereas the opposite applies for transport vehicle taxes. 
Heat  and  electricity  taxes  in  Romania  represent  0.5%  of  GDP,  which  reflect  an  increase  since  2007 
but  remains  below  the  EU  average.  The  car  taxes  are  not  dependent  on  CO2  emissions.  The 
registration tax is dependent on engine size (engine displacement in cc). 

(source: Eurostat) 

State  aid  decisions  were  adopted  under  Council  Decision  2010/787/EU  to  support  the  closure  of 
uncompetitive  coal  mines  in  order  to  alleviate  the  social  and  environmental  impact  and  several 
schemes and plans have been put in place6.  

5.4. Renewable energy  

With 24.8% renewable energy share in gross final consumption, Romania is well on track and even 
above  in  attaining  its  renewable  energy  target  for  2020.  Romania  met  the  2013/2014  indicative 
trajectory on RES share in gross final energy consumption; it is well above its 2015/2016 indicative 
trajectory as well as its 2020 target as set under the Renewable Energy Directive. 

Looking at sectors, in 2015, Romania reached a renewable energy share in transport of 5.5% and a 
renewable energy share in heating & cooling of 25.9%.  

In 2015, 43.2% of the electricity was generated from renewable energy sources out of which 27.8% 
from  hydro,  11.1%  from  wind  and  3.35%  from  solar  energy.  This  confirms  the  already  significant 

6 For instance, in 2012, three coal units received state aids for closure plan 

(http://ec.europa.eu/competition/state_aid/cases/241737/241737_1352982_64_2.pdf), and likewise for two 
additional coal mines in 
2016(http://ec.europa.eu/competition/state_aid/cases/266815/266815_1884825_88_2.pdf) 

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contribution  of  hydro  to  electricity  generation  in  Romania  but  also  reveals  the  consistent 
development of wind and solar electricity generation from 2010 onwards.  

The  deployment  of  wind  and  solar  energy  technologies  was  facilitated  due  to  a  generous  Green 
certificates scheme in place from 2008 onwards. The support scheme was adjusted in 2013/2014 and 
basically halved the number  of certificates attributed to wind and solar PV. On 30 March 2017 the 
Emergency  Ordinance  24/2017  has  been  adopted,  approving  the  amendments  to  the  renewable 
energy  support  scheme,  providing  a  balanced  approach  to  promoting  renewable  energy  in  a 
sustainable  manner  while  ensuring  a  reasonable  consumer  impact.  This  approach  brings  the  much 
needed stability and predictability to the Romanian renewable energy sector. 

 (source: Eurostat-SHARES) 

(source: Eurostat-SHARES) 

Due to a consistent deployment of  renewables since 2005, it is estimated that Romania avoided in 
2015  about  10.7%  of  the  fossil  fuel  use  in  gross  inland  consumption  and  about  8.3%  of  GHG 
emissions at national level7.   

7 Avoided GHG emissions mentioned here have a theoretical character as these contributions do not necessarily 
represent 'net GHG savings per se' nor are they based on life-cycle assessment or full carbon accounting. 

15 

 
 
 
 
 
                                                            
                              Energy Union –Romania 

 (source: EEA) 

5.5. Contribution of the Energy Union to better air quality 

Air  quality  in  Romania  continues  to  cause  concern.  For  2013,  the  European  Environment  Agency 
estimated  that  about  25,330  premature  deaths  were  attributable  to  concentrations  of  fine 
particulate matter (PM2.5) concentrations and 1,900 to nitrogen dioxide (NO2) concentrations8. 

For both pollutants Romania reported exceedances of the binding EU air quality standards9. For the 
year 2015, Romania reported exceedances of the limit value for PM10 in 2 out of the 52 air quality 
zones  in  Romania,  while  exceedances  of  the  limit  value  for  NO2  were  reported  in  1  of  53  zones  as 
shown in the figure below10.  

(source: EEA) 

8  European  Environment  Agency,  2016,  Air  Quality  in  Europe  –  2016  Report,  table  10.2.  The  report  also 
includes details as regards the underpinning methodology for calculating premature deaths.    
9 Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 on ambient air quality 
and cleaner air for Europe, OJ L 152, 11.6.2008, p.1-44 
10  Compliance  data  as  reported  by  the  Member  States  as  part  of  their  official  annual  air  quality  report  for  the 
calender year 2015 (available on the European Environment Agency's (EEA) Eionet/Central Data Repository), 
http://cdr.eionet.europa.eu/ro/eu/aqd  

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The health-related external costs from air pollution in Romania have been estimated to be more than 
EUR 10 billion/year (income adjusted, 2010), which includes the intrinsic value of living a healthy life 
without premature death as well as the direct costs to the economy such as healthcare costs and lost 
working days due to sickness caused by air pollution11. 

The  Energy  Union  can  substantially  contribute  to  addressing  these  air  quality  problems  through 
measures reducing emissions of both GHG and air pollutants such as PM and nitrogen oxides (NOx) 
from major contributing sectors such as (road) transport, energy production, industry and residential 
heating (e.g. stoves and boilers) as shown in the figure below12. 

(Source: EEA. This table reflects only sources of primary PM2,5 emissions.) 

6.  Research, innovation and competitiveness  

6.1. 

Research and innovation policy 

The Romanian National Research, Development and Innovation Plan is the main instrument by which 
the  National  Authority  for  Scientific  Research 
its  Strategy  for  Research  and 
Development. Two main programmes provide funds for energy research: the Innovation Programme 
and  the  Partnerships  Prioritising  Science  and  Technology  Programme.  These  programmes’ 
beneficiaries are SMEs, larger companies, research institutes, universities and public entities such as 
cities and municipalities. 

implements 

Energy  research  in  Romania  is  based  on  institutional  funding  through  government  agencies.  The 
Ministry  of  Economy  also  supports  energy  research 
Increasing  Economic 
Competitiveness  Sectoral  Operational  Programme  and  Axis  II  of  the  Competitiveness  through 
Research and Technology Development and Innovation Programme. 

through 

the 

11 See also the EU Environmental Implementation Review Country Report for Romania, SWD(2017)55 final of 
3.2.2017 
12 National emission data as reported by the Member States to the EEA (available on the EEA's Eionet/Central 
Data Repository), http://cdr.eionet.europa.eu/ro/eu/nec_revised 

17 

 
 
 
 
                                                            
 
                              Energy Union –Romania 

Romania  is  not  a  very  active  contributor  to  the  ongoing  work  of  the  Strategic  Energy  Technology 
(SET)  Plan.  It  only  participates  in  one  (out  of  fifteen)  temporary  working  groups  for  the 
implementation of the integrated SET Plan, the one dedicated to nuclear safety. 

Regarding  the  Horizon  2020  programme,  Romania  has  received  so  far  0.6%  of  the  EU  contribution 
devoted to the 'secure, clean and efficient energy' part of the programme. As of September 2017, 69 
participations  from  Romanian  organisations  have  been  awarded  EUR  10.6  million  in  Horizon  2020 
energy  projects.  This  includes  a  grant  of  over  EUR  0.7  million  to  Centrul  Roman  al  Energiei  for  its 
participation in project WiseGRID (smart grids). Romania's participation in several energy ERA-NETs is 
also worthy of mention. 

Romania does not participate in Mission Innovation, apart from the indirect participation by means 
of EU budget increase for clean energy innovation13.  

6.2. 

Investments and patents in the Energy Union R&I priorities  

In  2014,  public  (national)  investments  in  the  Energy  Union  R&I  priorities  reached  EUR  10  million, 
having increased by 39% compared to 2013. This was the maximum annual public investment in the 
period  2010-2014.  The  largest  share  of  these  investments  (30%)  was  attracted  by  the  Renewables 
R&I  priority  of  the  Energy  Union,  followed  by  the  Sustainable  Transport  and  the  Smart  Systems 
priorities  (24%  and  22%,  respectively).  In  2014,  the  most  recent  year  for  which  data  for  most 
Member States are available, public investment per GDP in Romania was lower than the EU average. 

Private investment in the Energy Union R&I priorities in 2013 was estimated at EUR 26 million (0.2% 
of  the  private  R&I  investment  in  Energy  Union  R&I  priorities  in  the  EU).  The  focus  was  on 
Renewables, which received 43% of these investments, followed by Efficient Systems with a share of 
28%. 

In 2013, the most recent year for which complete patent14 statistics are available, 26 companies and 
research organisations based in Romania filed 30 patents in low-carbon energy technologies (0.5% of 
the  EU  total).  The  focus  was  on  Renewables  (38%),  followed  by  Efficient  Systems  (23%)  and 
Sustainable Transport (22%). 

In 2013, private R&I investments and patents in Energy Union R&I priorities were lower than the EU 
average  when  normalised  by  GDP  and  by  population  respectively.  In  the  period  2007-2013,  both 
private  R&I  investments  and  the  number  of  patents  in  Energy  Union  R&I  priorities  increased  on 
average by 16% and 23% respectively, displaying higher rates of increase than the same indicators at 
EU level (6% and 15% respectively). 

14   In  the  context  of  this  document,  the  term  'patent'  refers  to  patent  families,  rather  than  applications,  as  a 
measure  of  innovative  activity.  Patent  families  include  all documents  relevant to  a  distinct  invention (e.g. 
applications to multiple authorities), thus preventing multiple counting. A fraction of the family is allocated 
to each applicant and relevant technology. 

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                              Energy Union –Romania 

Note: Public investment data only available for the period 2010 – 2014, as collected by JRC SETIS. 

(Data sources: Public investment data collected by JRC SETIS. Patent data based on the European Patent Office 
PATSTAT database15. Private investment as estimated by JRC SETIS. The detailed methodology is described in a 
JRC study16.) 

6.3. 

Competitiveness 

In 2014, the share of real unit energy costs (RUEC)17 in the value added of the manufacturing sector 
in Romania (21.4) was above those at the EU average (15.3), almost three times more than those in 
the US but below those in Japan and China. The electricity and gas prices paid by industrial customers 
in Romania are below the EU average but well above US levels.  

15 https://www.epo.org/searching-for-patents/business/patstat.html#tab1  
16 https://setis.ec.europa.eu/related-jrc-activities/jrc-setis-reports/monitoring-ri-low-carbon-energy-technologies  
17   This indicator measures the amount of money spent on  energy sources needed to obtain one unit of value 

added. 

19 

 
 
 
 
                                                            
                              Energy Union –Romania 

(source: ECFIN) 

                   (source: Eurostat and IEA) 

Romania  is  not  specialised  in  solar  PV  technology,  as  it  is  shows  by  the  revealed  comparative 
advantage  indicator18  below  1.  In  the  wind  sector  the  country  performs  better,  even  though  the 
indicator,  closer  to  1,  does  not  show  any  particular  specialisation.  The  relative  trade  balance19 
confirms that Romania is overall a net importer of solar and wind components, whereas for the latter 
the EU is a net exporter. It nonetheless recorded a trade surplus in wind turbine power electronics in 
2015. 

(source: UN comtrade) 

18 The RCA index for product "i" is defined as follows: RCAi =

Xj,i
∑ Xj,i
i
Xw,i
∑ Xw,i
i

 where X is the value of exports, and j is 

the country and w is the reference group, the World economy. 2005 refers in the text to the indicator average 
over the 2000-2009 period, while 2015 represents the average over the 2010-2016 period. The same applies for 
the RTB indicator - see below. 
19 The RTB indicator for product "i" is defined as follows: RTBi =

 where Xi is the value of product's "i" 

Xi−Mi
Xi+Mi

exports and Mi imports. 

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                              Energy Union –Romania 

7.  Regional and local cooperation 

Romania  is  a  member  of  three  Regional  Groups  which  have  been  established  under  the  TEN-E 
Regulation:  

  North-South electricity interconnections in Central Eastern and South Eastern Europe 
  North-South gas interconnections in Central Eastern and South Eastern Europe 
  Southern Gas Corridor 

Romania  is  a  member  of  the  High  Level  Group  on  Central  East  South  Europe  Connectivity  (CESEC). 
The  main  aim  of  the  group  is  to  coordinate  efforts  to  facilitate  cross-border  and  trans-European 
projects that diversify gas supplies to the region, as well as to implement harmonised rules. Austria, 
as  a  regional  gas  hub,  has  an  important  role  there.  More  specifically,  Romania  is  cooperating  with 
Bulgaria and Greece to connect the North-South Corridor in Eastern Europe with the Southern Gas 
Corridor,  through  access  to  storage,  to  existing  and  planned  LNG  terminals  in  Greece,  as  well  as 
through continuous bi-directional flows between Greece, Bulgaria and Romania. 

Romania  has  successfully  introduced  market  coupling  for  its  electricity  markets  with  Hungary, 
Slovakia and Czech Republic. As a next step, Romania also seeks participation in the North-Western 
Europe and Central Eastern Europe flow-based market coupling project (NWE-CEE FB MC).  

The EU macro-regional strategy for the Danube Region in which Romania takes part can be used as a 
basis  for  regional  cooperation  on  energy.  European  Territorial  Cooperation  –  'Interreg'  –  under  EU 
cohesion policy also provides further opportunities for cross-border, transnational and interregional 
cooperation, including in the Energy Union areas. 

Cities and urban areas have a key role in the energy and climate challenge. The Urban Agenda for the 
EU,  established  by  the  Pact  of  Amsterdam  in  May  2016,  better  involves  cities  in  the  design  and 
implementation of policies, including those related to the Energy Union. It is implemented through 
Partnerships, in which the Commission, Member States, cities and stakeholders work together on a 
number  of  important  areas,  including  on  Energy  Transition,  Urban  Mobility,  Air  Quality,  Climate 
Adaptation and Housing. Romania is participating in the partnerships on Urban Mobility, as member, 
Air Quality, with the city of Constanta as member, and Climate Adaptation, with the city of Sfantu' 
Gheorghe as member. 

Up  to  2016,  52  sustainable  energy  action  plans  were  submitted  by  Romanian  municipalities  and 
assessed  in  the  framework  of  the  Covenant  of  Mayors  initiative.  The  52  municipalities  cumulate 
about 3.3 million inhabitants and committed to a 23.4% average reduction of the GHG emissions per 
capita by 2020. 

Average  GHG  emission  per  capita  in  Covenant  Baseline  Emission  Inventories  and  corresponding 
estimates by 2020 (source: JRC) 

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                              Energy Union –Romania 

In  Romania,  by  September  2016,  6  cities  (covering  0.25  million  inhabitants)  have  committed  to 
conduct  vulnerability  and  risk  assessment  and  develop  and  implement  adaptation  plans  in  the 
framework of the Covenant of Mayors for Climate and Energy. 

8.  Cohesion policy and EU clean energy investments  

EU  cohesion  policy  makes  a  key  contribution  to  delivering  the  Energy  Union  objectives  on  the 
ground,  including  important  investment  possibilities  to  implement  energy  policy  objectives  in 
Romania,  which  are  complemented  by  national  public  and  private  co-financing,  aiming  at  optimal 
leverage.  It  also  ensures  integrated  territorial  solutions  to  energy  and  climate  challenges,  supports 
capacity building and provides technical assistance. 

Over  2014-2020,  cohesion  policy  is  investing  some  EUR  1,517  million  in  energy  efficiency 
improvements  in  public  and  residential  buildings,  as  well  as  in  high-efficiency  cogeneration  and 
district  heating,  renewable  energy  and  smart  energy  infrastructure  in  Romania.  Cohesion  policy  is 
also  investing  significantly  in  R&I  and  in  SME  competitiveness  in  Romania,  based  on  the  national 
strategy  for  smart  specialisation.  For  Romania,  the  RDI  strategy  2014-2020  includes  a  focus  on 
renewable and clean energy sources. At this stage, at least EUR 15 million is foreseen for investments 
in R&I and adoption of low-carbon technologies in  Romania, but this  might increase further in line 
with the evolving content of the smart specialisation strategy. A further estimated EUR 3 745 million 
is invested in supporting the move towards an energy-efficient, decarbonised transport sector. 

(source: DG REGIO) 

These investments are expected to contribute to around 129,000 households with improved energy 
consumption  classification,  a  decrease  of  around  31,365,000  kWh  per  year  of  primary  energy 
consumption  of  public  buildings,  around  60  MW  of  additional  capacity  of  renewable  energy 
production  and  80,000  additional  users  connected  to  smart  grids,  as  well  as  to  around  640  km  of 
reconstructed or upgraded railway lines and 70 km of new or improved tram and metro lines and 30 
km of new or improved inland waterways. Overall, the EU cohesion policy investments in Romania 
over  2014-2020  are  expected  to  contribute  to  an  estimated  annual  decrease  of  GHG  emissions  of 
around 343,000 tonnes of CO2eq. 

22 

 
 
 
 
                              Energy Union –Romania 

For  example,  the  European  Regional  Development  Fund  (ERDF)  has  co-financed  111  projects  to 
improve energy efficiency in blocks of flats throughout the country. Their total cost amounts to EUR 
75.3 million, including an ERDF contribution of EUR 37.1 million. More than 41 000 apartments have 
been retrofitted whereby total energy savings reach 346 GW/year. Responding to huge needs, about 
EUR 1 billion has been allocated to continue investments in both residential and public buildings up 
to 2023.  

As another example, in the area of clean urban transport, the European Regional Development Fund 
(ERDF) has co-financed the modernisation of 25.5 km of tram lines in Cluj-Napoca, Romania's second 
most populated city. With this investment public transport use would increase with 10% and energy 
costs  decrease with 38%.  The ERDF  invested  EUR  22  million,  out  of  a  total  investment cost of  EUR 
36.3 million.  

As a further example, the Cohesion Fund invested EUR 27 million, out of a total investment cost of 
EUR 58 million, to rehabilitate the district heating system in Timisoara. The project included retrofit 
of  boilers  for  natural  gas,  installation  of  a  desulphurisation  plant  and  modernisation  of  pumping 
stations.  Energy efficiency  was  increased  and  the plant made  compliant with  the large  combustion 
plant directive. The number of direct beneficiaries connected to the district heating system is about 
220 000. 

Through  its  support  to  sustainable  transport  systems,  the  Connecting  Europe  Facility  (CEF)  also 
contributes  to  the  goals  of  the  Energy  Union.  Following  Romanian  participation  in  the  CEF  – 
Transport  2014-2015  Calls,  the  Romanian  action  portfolio  comprises  20  signed  grant  agreements, 
allocating EUR 1,218 million of actual CEF Transport Funding to Romanian beneficiaries (state-of-play 
February  2017)20. The transport mode  which  receives  the highest  share  of  funding is  rail  (92.5%  of 
actual funding). The Romanian rail actions target conventional rail and aim at eliminating important 
bottlenecks along the two core network corridors crossing the country, i.e. the Rhine Danube and the 
Orient  East-Med  corridors.  Another  large  share  of  the  Romanian  action  portfolio  is  in  the  inland 
waterway (IWW) sector. All IWW actions are located along the Romanian-Bulgarian common section 
of the Danube and aim to remove existing bottlenecks, thereby reinstating a good navigation status. 
The  Romanian  road  actions  mainly  focus  on  intelligent  transport  systems  (ITS)  as  well  as  the 
deployment of alternative fuels.21 

20 Note that European Economic Interest Groups and International Organisations are excluded from the analysis. 
21 Source: INEA 

23