Romania has hit the EU funds jackpot, securing significant amounts for fossil gas projects. However, implementation has been sluggish. More concerningly, these projects could delay Europe’s energy transition and deepen Romania’s dependence on fossil fuels.
Raluca Petcu, Gas campaigner | 5 September 2024
The country’s newly published energy strategy argues for increased gas consumption based on plans for new power plants and distribution systems. According to both the national energy strategy and the national energy and climate plan, due to be released this month, Romania will add 2 gigawatts to its gas-fired power production capacity by 2030. However, the number of projects in the works is actually much higher.
Romania is currently actively building and planning a number of gas-fired power plants with a combined capacity of over 3 gigawatts. New projects slated for Turceni, Isalnita and Mintia are being pursued to replace the country’s ageing coal infrastructure and ‘secure’ the national energy system.
But while most EU countries are trying to reduce their reliance on gas after Russia’s full-scale invasion of Ukraine, the Romanian government seems oblivious, pressing ahead with plans to open the Neptun Deep gas field in the Black Sea.
Starting in 2027, OMV-Petrom expects to extract around 100 billion cubic metres of fossil gas over a period of at least 20 years, well beyond the time Europe’s energy system aims to be free of fossil fuels. According to the country’s energy strategy, this would position Romania as a major regional fossil gas exporter starting in 2027.
But Romania needs energy now. Soaring temperatures this summer have led to a surge in the use of cooling devices, with the national power system unable to meet increased demand, resulting in record-high imports. The government has even warned of possible local power outages.
The planned gas power plants will take at least three more years to become operational and have already encountered considerable delays. The 850-megawatt Isalnita power plant is still in the permitting stage, while the Turceni plant (475 megawatts) is only now undergoing tender preparations. Though the initial plan was to start operations in 2026, officials have now suggested the end of 2027 as a more realistic target.
Meanwhile, the Mintia mega power plant, with a capacity of 1700 megawatts, appears to be on track. The project has obtained an environmental permit, secured a construction contract, and already received the delivery of its first turbine. The power plant is expected to be completed by mid-2026. However, its sources of financing remain a mystery.
In theory, renewable energy projects should be faster to build, as the permitting process is typically shorter than that for a huge concrete carbon emitter. Solar farms, for example, generally take 8 to 18 months to complete1 from planning to implementation, compared to a minimum of 24 months only for constructing a gas plant. In Romania, solar farms with a total capacity of 2000 megawatts are expected to come online in 2024 and 2025. If these deadlines are met, solar energy, coupled with energy storage solutions, could meet Romania’s energy demand as early as next summer.
The hydrogen mirage
The companies behind these new gas projects claim their power plants are ‘hydrogen-ready’, touting their capacity to burn a blend of fossil gas and hydrogen, usually at around 20 per cent. While they claim to eventually transition to 100 per cent renewable hydrogen, the economic realities point to a far less appealing future.
Recent reports indicate that the price of renewable hydrogen in Europe will not drop below EUR 5 per kilogramme by 2030 and EUR 3 per kilogramme by 2050. In contrast, the equivalent energy content of gas (3 cubic metres) currently costs around 1 EUR in the EU. Given that fossil gas is already one of the most expensive fuels for electricity production in the EU, rising fuel prices could further jeopardise the economic viability of these power plants. As a result, there’s a strong likelihood that these plants will continue to primarily run on fossil gas, derailing Romania’s trajectory towards an economy free of fossil fuels.
The documentation for these projects also suggests that hydrogen may just be a fig leaf for continued fossil fuel dependence. The technical details for Isalnita and Turceni make zero mention of ‘hydrogen-ready’ components. Only the Mintia project refers to hydrogen generators and storage capacity. In any case, these projects will need additional investments to increase hydrogen usage.
The truth is, the Romanian government’s megalomaniacal pursuit of gas needs a reality check. It must increase its support for electrification by investing in networks and energy storage, while simplifying bureaucratic procedures for renewable energy projects, such as land acquisition. The country already has an installed gas capacity of around 3 gigawatts, with plans to increase this to 5.3 gigawatts by 2030 according to the national energy and climate plan. However, the actual projects in development indicate a significantly higher capacity.
New modelling published by the Regional Centre for Energy Policy Research (REKK), a Budapest-based think tank, shows that new gas capacity in Romania could be reduced to as little as 600 megawatts in total. On the other hand, a shift to hydrogen could risk turning these planned power plants into stranded assets. Even 600 megawatts is excessive given the present climate chaos, highlighting the urgent need for Romania to find viable alternatives, including demand response strategies.
Communities focus on sustainability
Though Romania’s government and utility companies continue to heavily promote gas as a solution for regions in transition, local communities are increasingly looking towards sustainable alternatives. While they accept gas as a short-term measure, they don’t see it as a viable long-term fuel. Instead, some communities have chosen to focus on energy efficiency and sustainable energy to support local residents.
For example, the small town of Turceni in the Gorj coal region is implementing multiple EU-funded green projects, while other towns are taking the opportunity to install municipal solar farms and support prosumers. RenewAcad, the largest network of renewable energy training centres in southeastern Europe, is helping to skill local residents to operate solar and wind farms and manage power systems. This proves that where there’s a willing market, there’s a way.
Accelerating the development of both distributed and large-scale solar production capacities is key to enhancing energy security and ensuring a sustainable transition. Alongside other regeneration initiatives, this approach can help productively utilise brownfield sites and boost electricity generation capacity at the quickest rate. For instance, there’s huge potential to harness the abundant sunshine on offer in the southwestern coal region of Gorj as a way of attracting new business, reducing pollution and engaging communities. By embracing renewable sources of energy in this way, Romania can secure a cleaner, more sustainable future for its citizens.
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