“It is true that the energy system is fragile, but paradoxically, it is the strongest economic sector in Romania.
The energy sector forms the real basis of economic development and represents a true potential for economic growth for Romania, not only at the national level but also regionally. That being said, it is at the same time fragile—because it is vulnerable to external causes, to major market disruptions, as was evident during the energy crisis triggered by a war in our vicinity.
It is also fragile in the face of an internal source of vulnerability, and I am thinking exclusively of regulation. This strong economic sector needs extremely transparent, stable, predictable regulation that facilitates the functioning and development of the industry. That is, in fact, our biggest challenge,” said Daniel Apostol, Managing Director of FPE, during the Green Energy Conference, organized by The Diplomat-Bucharest.
Key statements:
- We wanted to “go green” quickly. That was the drive in the past 2–3 years. We wanted to green ourselves fast, and today we see that the situation has turned “blue.”
- We are indeed talking about real potential. Romania has an energy mix that gives us the possibility to have big ambitions—provided that each component of this mix is properly managed. Ahead of us lies a wide palette of new technologies, but also the challenges they bring. We need adequate legislation.
- Adequate legislation means one designed to facilitate investments in these new technologies—to enable investments in production, in grids, in storage, with the goal of balancing the national energy system. Together, these elements are the true factor of energy stability, not only nationally but also regionally. Romania, as a major energy producer, has the potential to be an exporter of energy stability.
- The investment needs are extremely high, because they must meet the demands of the future, not the present. Those who plan investment projects operate under this philosophy. An investment is forward-looking: what it will deliver in the future, what return on investment it will bring, how long it will take to balance out the capital invested and generate profit—for society, for companies, through taxes and duties, and for consumers. Legislation must also be designed in this forward-looking way.
- Unfortunately, for many years we have lived under a “firefighting” model of legislation—solving immediate problems instead of addressing long-term needs. This has led to instability and unpredictability, often cited by investors. We face high bureaucratic hurdles for obtaining permits, approvals, and authorizations, along with unpredictability in the fiscal system.
- The energy sector is also one of the most heavily overtaxed economic sectors.
- Bankability itself is not the main problem—companies in this sector are strong, financially credible, and bankable. The real issue lies with large investment projects in new technologies, which are often mandated by EU regulations setting national targets that companies, together with the state, must meet. Such projects are not always economically justifiable—except when financed, or co-financed, with European funds.
- Therefore, there must be a very clear, transparent, and well-structured vision regarding the development of projects involving new technologies.
