Romania’s Energy Strategy 2025–2035: A Blueprint for Sustainability, Security, and Economic Competitiveness

December 18, 2024

Introduction

The Romanian government has introduced its most ambitious energy roadmap to date: the Energy Strategy for 2025–2035, with a forward-looking vision for 2050. This strategic document charts Romania’s path toward sustainable energy, aligning with EU climate targets while addressing national energy security, competitiveness, and economic needs.

Vision and Strategic Objectives

The strategy aims to create a secure, accessible, and sustainable energy sector by 2035, ensuring competitiveness and resilience in the face of geopolitical, economic, and environmental challenges. The six key objectives are:

  1. Energy Security
  2. Low-Carbon Energy Transition
  3. Energy Efficiency
  4. Universal Energy Access and Affordability
  5. Efficient Energy Markets
  6. Digitalization and Cybersecurity

Each of these objectives aligns with Romania’s national interests while complementing European policies such as the EU Green Deal and Fit-for-55 Package.

Energy Security: Strengthening Supply Chains and Infrastructure

Energy security remains a cornerstone of the strategy due to Romania’s unique geographical position and evolving energy demands:

  • Diversification of Energy Resources: Romania seeks to reduce reliance on imports by capitalizing on domestic natural gas reserves, renewable energy, and nuclear energy. New extraction projects aim to safeguard supply chains and reduce import dependency.
  • Regional Cooperation: Strategic partnerships with Moldova and neighboring countries will strengthen energy interconnections and establish Romania as a regional energy hub. Projects like cross-border grid connections and the PCI (Projects of Common Interest) will enhance resilience.
  • Infrastructure Modernization: Investments in energy storage systems, smart grids, and backup energy solutions are prioritized to mitigate crises and balance grid loads.

Transition to Low-Carbon Energy: Romania’s Path to Decarbonization

Romania commits to ambitious GHG emissions reductions of 87% by 2030 and 94% by 2050 compared to 1990 levels. Achieving these targets requires:

  • Renewable Energy Expansion: Increasing the share of renewable energy (wind, solar, hydro, and geothermal) to 44% by 2035 and 73% by 2050.
  • Nuclear Energy Investments: New nuclear facilities, including small modular reactors (SMRs), will play a pivotal role in ensuring clean, reliable energy production.
  • Natural Gas as a Transitional Fuel: Gas-fired plants will ensure energy flexibility during the transition from coal.
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Additionally, Romania and Moldova will collaborate on green hydrogen production and distribution, a transformative step toward achieving zero-carbon energy goals.

Improving Energy Efficiency: A National Priority

Romania recognizes energy efficiency as a tool to reduce emissions, enhance competitiveness, and address energy poverty:

  • Optimizing Infrastructure: Modernizing power grids, pipelines, and thermal networks will minimize energy losses and costs.
  • Consumer-Focused Measures: Households and businesses will benefit from subsidies for energy-efficient technologies, smart meters, and improved insulation.
  • Industrial Efficiency: Industries will transition toward clean energy, supported by financial incentives for green innovations and self-consumption solutions.

Ensuring Energy Access and Affordability

The strategy emphasizes equity and inclusivity in energy access:

  • Extending Energy Networks: Investments in rural electrification and natural gas infrastructure will bring reliable energy to underserved regions.
  • Reducing Energy Poverty: Targeted subsidies and financial support will protect vulnerable consumers from energy price volatility.
  • Supporting Industrial Competitiveness: Energy-intensive industries will receive tailored support to implement clean technologies and stabilize energy costs.

Digitalization and Cybersecurity: Modernizing the Energy Sector

The digital transformation of Romania’s energy sector is vital for efficiency, security, and future innovation:

  • Smart Grids and Digital Infrastructure: Widespread deployment of smart meters and real-time monitoring systems will optimize energy distribution and consumption.
  • Cybersecurity Measures: Companies will be required to implement CSIRT (Computer Security Incident Response Teams) and Security Operation Centers (SOCs) to protect energy infrastructure.
  • Cloud-Based Platforms: Integrating energy systems into Romania’s Private Government Cloud will centralize operations and improve resilience.
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Implications for Businesses and Investors

The Energy Strategy opens significant opportunities for businesses, investors, and stakeholders:

  • Renewable Energy Investments: Companies in wind, solar, hydro, and green hydrogen technologies will benefit from co-financing programs and EU incentives.
  • Nuclear and Gas Sector Growth: Investors in nuclear energy, particularly small modular reactors, and gas infrastructure will find Romania’s market increasingly attractive.
  • Technology Providers: Businesses offering smart energy solutions, grid optimization systems, and cybersecurity services will play a crucial role in Romania’s energy future.

Conclusion

Romania’s Energy Future – Opportunities and Responsibilities

The Energy Strategy 2025–2035 sets a clear path for Romania to achieve energy security, sustainability, and competitiveness while contributing to EU climate targets. For stakeholders, this strategy presents unparalleled opportunities to invest, innovate, and collaborate.

At SCPA Hirsch Marinescu & Partners, we stand ready to assist businesses in navigating Romania’s evolving energy landscape, ensuring compliance with regulatory changes, and seizing emerging opportunities.

Author: Mag. Raluca Marinescu
For further information on this aspect and any other questions please feel free to contact: Mag. Raluca Marinescu L.L.M. raluca.marinescu@nhp.ro.