energies

Article Current Situation and Future Perspectives of the Romanian

¸StefanDrago¸sCîrstea 1,* , Claudia Stelu¸taMarti¸s 1, Andreea Cîrstea 2, Anca Constantinescu-Dobra 1 and Melinda Timea Fülöp 2

1 Faculty of Electrical Engineering, Technical University of Cluj-Napoca, 400114 Cluj-Napoca, ; [email protected] (C.S.M.); [email protected] (A.C.-D.) 2 Faculty of Economics and Business Administration, Babes-Bolyai University, 400591 Cluj-Napoca, Romania; [email protected] (A.C.); [email protected] (M.T.F.) * Correspondence: [email protected]; Tel.: +40-745-301-093

 Received: 28 October 2018; Accepted: 23 November 2018; Published: 25 November 2018 

Abstract: In 2015, Romania was the first country in Europe that achieved EU targets regarding the share of renewables in the generation mix, far ahead of the 2020 deadline. Starting with the energy structure in Romania, the paper: (1) analyses the evolution of the main indicators in the renewable energy sector, (2) discloses the perspectives of renewable synthesizing the main trends of development in the field, and (3) analyses the challenges facing with the development of renewable energy in Romania. Based on analyzing the exploratory data, the paper makes a preliminary prediction of the development of the sector for future decades and proposes targeted countermeasures and suggestions. Romania still has unexploited potential concerning renewable energy sources. Since Romania registered continuous economic growth, the demand for is steadily growing, and this trend is expected to continue. Additionally, Romania could introduce a support mechanism for developing the potential of unexploited existing resources. The results of the present study may be useful for further research regarding public policies for the development of renewable energy. Furthermore, it can represent a useful analysis in order to identify future trends of renewable energy in Romania.

Keywords: renewable energy; future perspectives; renewable energy sources; Romania energy structure; exploratory study

1. Introduction The economic development of a state depends to a large extent on its ability to create and maintain constant access to energy resources. Contemporary society is in a continuous transformation. Both the current needs and the resources necessary for their satisfaction change rapidly, causing important mutations in everyday life. Energy production sectors are exempted from continuous transformations. Every day the need for energy is growing. Energy security is the ability of a nation to deliver the energy resources needed to ensure its welfare and implies secure supply and stable prices. The decision about ensuring energy security are always taken over the long-term because it implies the implementation of large projects needing enormous investments. Energy sources can be divided into three main categories: fossil fuels, nuclear resources, and renewable energy sources [1]. Renewable energy sources can provide energy free of air pollutants and greenhouse gasses by emitting zero or nearly 0% of these gasses [2]. European Court of Auditors (ECA) reveals in a report which are the main types of renewable energy sources, relevant technologies and specific applications (Figure1). They sustain that using

Energies 2018, 11, 3289; doi:10.3390/en11123289 www.mdpi.com/journal/energies Energies 2018, 11, 3289 2 of 22

Energies 2018, 11, x FOR PEER REVIEW 2 of 21 more renewable energy is crucial if the EU wants to reduce its greenhouse gas emissions to comply more renewable energy is crucial if the EU wants to reduce its greenhouse gas emissions to comply with the 2015 Paris Agreement on Climate Change [3]. with the 2015 Paris Agreement on Climate Change [3].

Figure 1. Renewable energy sources, technologies and applications; source: adapted from ECA, Figure 1. Renewable energy sources, technologies and applications; source: adapted from ECA, 2018 2018 [3]. [3]. Globally, the energy sector has a significant impact on the environment, air pollution, water, Globally,soil pollution, the energy and onsector GHG has emissions a significant or impact climate on change. the environment, Between 2009air pollution, and 2013, water, the soil share of pollution,renewable and on energy GHG sourcesemissions (RES) or climate in the EU’s change energy. Between generation 2009 and mix 2013, increased the share from of 9 renewable to 16% and it is energyexpected sources to (RES) grow in up the to EU's 20% energy by 2020 generation [4]. RES progress mix increased since 2005 from allowed 9 to 16% the and EU it tois expected cut its fossil to fuel growuse up byto 20% 11% by and 2020 its GHG[4]. RES emissions progress by since 10% 2005 in 2015 allowed [5]. Over the theEU lastto cut decade, its fossil significant fuel use progressby 11% has and itsbeen GHG made emissions in the energy by 10% sector in [5]. Over tothe limit last the decade, environmental significant impact. progress However, has been considerable made in theefforts energy are sector still neededin Romania for the to energylimit the sector environmental to contribute impact. to Romania’s However, transition considerable to an economyefforts are based still neededon the principlesfor the energy of sustainable sector to development.contribute to Romania's transition to an economy based on the principlesJudicious of sustainable value, development. energy resources contribute significantly to: (1) economic and social development, Judicious(2) improving value, the standardenergy ofresources living of thecontribute population, significantly and (3) managing to: (1) strategic economic challenges/surprises. and social development,Overall, energy (2) improving supply is the essential, standard given of thatliving any of gap the inpopulation, energy supply and can(3) havemanaging significant strategic negative challenges/surprises.consequences on Overall, both socio-economics energy supply and is essential, the public. given Romania that any fulfills gap the in firstenergy condition supply of can energy have security,significant holding negative important consequences energy on resources both socio-economics that can support and integrated the public. cycles Romania in certain fulfills industrial the first conditionbranches. of Theoretical energy security, potential holding of RE largelyimport exceedsant energy all otherresources energy that forms can support [6]. In order integrated to meet the cyclesworld’s in certain demand, industrial an important branches. factor Theoretical that contributes potential toof harvesting RE largely energy exceeds from all renewableother energy sources formsand [6]. to In use order them to as meet the sourcethe world's of new, demand, clean, and an sustainableimportant energyfactor that is technological contributes advancementto harvesting [7–9]. energyThe from shift renewable to renewable sources energy and is mandatoryto use them given as the that source fossil of fuel new, supplies clean, 85.77%and sustainable of the primary energy energy is technologicalconsumption advancement of the world [7–9]. [10, The11]. shift Nowadays, to renewable a significant energy percentageis mandatory (25.4% given in that 2014) fossil of fuel the total suppliesenergy 85.77% production of the primary in the EU energy comes consumption from renewable of energythe world sources [10,11]. [12 ].Nowadays, In Romania, a significant with more than percentage30% of (25.4% its total in electricity 2014) of demandthe total comingenergy fromproduction RES [13 in], renewablethe EU comes energy from production renewable is significantlyenergy sourcesincreasing [12]. In [Romania,14]. with more than 30% of its total electricity demand coming from RES [13], renewableRomania energy production has rich and is significantly varied renewable increasing energy [14]. resources: biomass, hydropower, geothermal Romaniapotential, has wind, rich concentrated and varied renewable solar power energy (CSP), resources: and photovoltaic biomass, hydropower, energy. They geothermal are distributed potential,throughout wind, theconcentrated country and so canlar bepower exploited (CSP), on and a wider photovoltaic scale as soon energy. as the They performance-price are distributed ratio of throughouttechnologies the country improves. and can This be level exploited will only on a be wi achievedder scale by as maturingsoon as the new performance-price generations of equipment ratio of technologiesand related improves. facilities. This Romania level haswill advanced only be achieved the use ofby a maturing significant new part generations of the wind of and equipment photovoltaic and relatedenergy facilities. potential. Romania Evaluating has advanced the main the renewable use of a significant energy sources part of can the be wind underlined and photovoltaic that the least energyharmful potential. to the Evaluating environment the ismain considered renewable wind energy energy sources [15,16]. can At thebe sameunderlined time, it that is sustainable the least and harmfullong-lasting, to the environment pollution-free, is considered and eco-friendly wind energy [17–19 ].[15,16]. At the same time, it is sustainable and long-lasting, pollution-free, and eco-friendly [17–19]. With a share of 24.7% in 2015, Romania has already achieved its 2020 target (24%) for renewable energy due, in particular, to the size of its hydropower sector, which is responsible for about one

Energies 2018, 11, 3289 3 of 22

With a share of 24.7% in 2015, Romania has already achieved its 2020 target (24%) for renewable energy due, in particular, to the size of its hydropower sector, which is responsible for about one third of the installed power generation capacity, but also the evolution of wind energy (9.4% of the energy generated in 2014) and the use of biomass for heating (16.6% of final energy consumption) [20]. As an EU member state, Romania must achieve the target established by the EU that binds the member states to reach a share of at least 27% of renewable energy in its gross final energy consumption [5]. The objectives of the article are: (1) to outline the energy structure in Romania; (2) to present the evolution of the main renewable energy indicators in Romania; (3) to discuss the perspectives of renewable energy in Romania when Romania intends to participate in achieving the European targets for reducing CO2 emissions; (4) to indicate the challenges facing with the development of renewable energy in Romania; and (5) to predict the development of renewable energy in Romania and propose targeted countermeasures and suggestions. The paper aims to present an overview of the different types of renewable energy resources, their current and future states, their share in different economic sectors, and their benefits. This study contributes to the existing body of knowledge in several ways. First, this paper is one of the first contributions to the existing literature which shapes, in one review article, an overview of the Romania energy sector, the impact and the development of renewable energy in Romania, and outlines the future perspectives of this important economic sector. Secondly, this study is the first attempt to investigate the overall renewable energy in Romania after the publication of Energy Strategy of Romania 2016–2030 with the perspective of 2050, in the context of achieving the Climate change targets and UN Sustainable Development Goals.

2. Energy Structure in Romania To have a complete overview of the Romanian energy structure, we choose to analyze the evolution of the main energy indicators in comparison with other six former communist countries who are also members of the EU. All the countries’ EU accessions were between 2004 and 2007, but they have a different level of development. Romania has become an extremely exciting country in terms of investment after EU accession. This is also due to the economic growth registered by this country over the last period. The Romanian economy grew by 7% in 2017, compared to 2016, the largest increase since 2008. In 2008, the Romanian economy grew by 7.1%, in real terms, compared to 2007. In 2016, the Romanian economy grew by 4.8% and, in 2015, the Romanian economy advanced by 3.9%. Though it can be observed that Romania’s gross energy consumption declined significantly after 1990, reaching 377 TWh in 2015, equivalent to about 19 MWh per capita, and the final energy consumption was 254 TWh. The modeling results estimate gross energy consumption in 2030 to 394 TWh (a 4% increase) and final energy demand to 269 TWh (a 6% increase). Consumption of energy resources as raw material is set to increase by 35% (6 TWh), while energy consumption and losses will decrease by 4 TWh. The analysis of final energy consumption in 2015 (total 254 TWh) by type of energy consumption brings to the fore the heating and cooling needs, estimated at 97 TWh (39%)—of which 76 TWh in households and 21 TWh in the services sector (Figure2). The consumption in industrial processes (48 TWh) and in passenger transport (48 TWh) are the next ranked in descending order. The rest of the industrial energy consumption is 27 TWh of final energy, and the freight transport consumes the equivalent of 17 TWh. Electronic and household appliances, used by households and in services, consumes 13 TWh (of which 10 TWh household consumption). Finally, the specific consumption of the agricultural sector is 4 TWh. Energies 2018, 11, 3289 4 of 22 Energies 2018, 11, x FOR PEER REVIEW 4 of 21 Energies 2018, 11, x FOR PEER REVIEW 4 of 21

100 100 87 86 87 86 75 80 75 80 65 65 60 60 48 45 48 45 35 40 35 40 26 28 27 26 28 27 20 20

0 0 2015 2030 Energy intensive industry 2015Other industrial sectors Households 2030 Energy intensive industry Other industrial sectors Households Agriculture and services Transport Agriculture and services Transport

Figure 2. Final energy demand by sectors in 2015 and 2030, Source: Own research based on National Figure 2. Final energy demand by sectors in 2015 and 2030, Source: Own research based on National Energy RegulatoryRegulatory AuthorityAuthority (ANRE)(ANRE) datadata [[20].20]. Energy Regulatory Authority (ANRE) data [20]. Natural gas, the main energy resource inin Romania,Romania, hadhad a share of 29% (111 TWh) in the primary Natural gas, the main energy resource in Romania, had a share of 29% (111 TWh) in the primary in 2015, followed followed by by crude crude oil, oil, with with a ashare share of of 27% 27% (101 (101 TWh) TWh) (Figure (Figure 3).3). A Atotal total of of65 energy mix in 2015, followed by crude oil, with a share of 27% (101 TWh) (Figure 3). A total of 65 65TWh TWh of ofcoal coal (of (of which which 55 55 TWh TWh of of lignite) lignite) and and 46 46 TWh TWh as as biomass biomass were were consumed. TWh of coal (of which 55 TWh of lignite) and 46 TWh as biomass were consumed. Nuclear power corresponds toto 3535 TWhTWh inin the primary energy mix and 26 TWh comes from RES to produce electricity corresponds to 35 TWh in the primary energy mix and 26 TWh comes from RES to produce electricity (hydro,(hydro, wind,wind, andand photovoltaic).photovoltaic). The difference between gross energy consumption and the primary (hydro, wind, and photovoltaic). The difference between gross energy consumption and the primary energy mix is given by the net export of electricity, which cannot be allocated by the type of of resource. resource. energy mix is given by the net export of electricity, which cannot be allocated by the type of resource.

Renewable Coal 2030 – 394 TWh Renewable Coal 2030 – 394 TWh energy 10% 22%energy 10% Renewable 22% Renewable Coal energy 17% Coal 19%energy 17% 19%

Oil Nuclear Oil Nuclear 25% 9% 2015 – 377 TWh 25% 9% 2015 – 377 TWh Oil Nuclear 26% Oil 17%Nuclear 26% 17% Natural gas 29%Natural gas 29% Natural gas 26%Natural gas 26%

Figure 3. Structure of primary energy mix in 2015 and 2030, Source: Own research based on National Figure 3. Structure of primary energy mix in 2015 and 2030, Source: Own research based on National Energy RegulatoryRegulatory AuthorityAuthority (ANRE)(ANRE) datadata [[20].20]. Energy Regulatory Authority (ANRE) data [20]. As cancan bebe observed observed in in Figure Figure4, biomass 4, biomass is the is most the most important important contributor contributor in the renewablein the renewable energy As can be observed in Figure 4, biomass is the most important contributor in the renewable mixenergy in 2015, mix within 2015, a share with of a 63.9%. share Almostof 63.9%. one Almost third of one renewable third of energyrenewable is provided energy byis hydropower,provided by energy mix in 2015, with a share of 63.9%. Almost one third of renewable energy is provided by ahydropower, sector which a cansector be extendedwhich can in be the extended future, due in the to thefuture, fact due that to there the arefact unfinished that there investmentsare unfinished in hydropower, a sector which can be extended in the future, due to the fact that there are unfinished thisinvestments sector that in werethis sector started that before were 1989. started before 1989. investments in this sector that were started before 1989.

Energies 2018, 11, x 3289 FOR PEER REVIEW 55 of of 21 22

0.6% 2.8%

9.7%

23.0% 63.9%

Geothermal Photovoltaic Wind Hydro Biomass/Waste

Figure 4. Structure of renewable energy mix in 2015, Source: Own research Figure 4. Structure of renewable energy mix in 2015, Source: Own research The latest Eurostat data (2016) shows that the final energy price in Romania is considerably belowThe the latest European Eurostat average data (2016) for both shows natural that gas the and final electricity. energy price On electricity,in Romania Romania is considerably had the belowsixth lowest the European EU average average household for both price natural of 132 gas€ and/MWh, electricity. Bulgaria On (96 electricity,€/MWh), Romania Lithuania, had the the Czech sixth lowestRepublic, EUEstonia, average and household Croatia (131price€ /MWh).of 132 €/MW For industrialh, Bulgaria consumption, (96 €/MWh), Romania Lithuania, had the the Czech third Republic,lowest electricity Estonia, price and ofCroatia 80 €/MWh, (131 €/MWh). after Bulgaria For industrial and the Czech consumption, Republic (78 Romania€/MWh), had followed the third by lowestCroatia electricity (93 €/MWh) price and of 80 Estonia €/MWh, (96 after€/MWh). Bulgaria and the Czech Republic (78 €/MWh), followed by Croatia (93 €/MWh) and Estonia (96 €/MWh). 3. Main Renewable Energy Indicators Evolution 3. Main Renewable Energy Indicators Evolution The selected indicators were analyzed in comparison with other six EU member countries to obtainThe a moreselected significant indicators overview. were analyzed The countries in comparison selected for with the study other were: six EU Bulgaria, member Czech countries Republic, to obtainHungary, a more Poland, significant Slovenia, overview. and Slovakia. The All countr theseies states selected are former for the communist study were: countries Bulgaria, in different Czech Republic,stages of economicHungary, development.Poland, Slovenia, and Slovakia. All these states are former communist countries in differentOne of stages the most of economic important development. indicators in the field of renewable energy is Renewable Energy CountryOne Attractivenessof the most important Index (RECAI). indicators The in RECAI the field ranks of 40renewable countries energy on the is attractiveness Renewable Energy of their Countryrenewable Attractiveness energy investment Index (RECAI). and deployment The RECAI opportunities ranks 40 countries [21]. In on the the same attractiveness time, RECAI of their has renewableestablished energy itself asinvestment an industry and standard deployment and oppo is widelyrtunities regarded [21]. In as the providing same time, leading RECAI market has establishedcommentary, itself analysis, as an and industry insights standard on the global and renewable is widely energy regarded sector as [ 22providing]. Analyzing leading this indicator market commentary,(Table1), it can analysis, be observed and thatinsights Romania on the has anglobal average renewable attractiveness energy regardingsector [22]. renewable Analyzing energy. this indicator (Table 1), it can be observed that Romania has an average attractiveness regarding renewable energy. Table 1. Romania scores in RECAI rankings.

Indicator name Value Table 1. Romania scores in RECAI rankings. All renewables 46 WindIndicator index name Value51 OnshoreAll renewables index 4655 OffshoreWind index index 5138 SolarOnshore index index 5533 SolarOffshore PV index 3845 SolarSolar CSP index 330 Biomass 44 Solar PV 45 Geothermal 41 Solar CSP 0 Infrastructure 45 Biomass 44 Source: Own representation adapted from RECAI [22]. Geothermal 41 Infrastructure 45 To have an overview ofSource: the renewable Own representation energy adapted sector from in Romania,RECAI [22] we consider that a detailed breakdown of the evolution of the main indicators is necessary. In terms of renewable energy, a series of indicatorsTo have hasan overview been selected of the for renewable this research, energy including: sector in Romania, we consider that a detailed breakdown of the evolution of the main indicators is necessary. In terms of renewable energy, a series of1. indicatorsRenewable has energies—primarybeen selected for this production; research, including: 2. 1.Share Renewable of renewables energies—primary in electricity production; 2. Share of renewables in electricity production;

Energies 2018, 11, x FOR PEER REVIEW 6 of 21

Energies 2018, 11, x FOR PEER REVIEW 6 of 21 Energies3. 2018Renewable, 11, 3289 electricity output; 6 of 22 3.4. Renewable electricity shareoutput; of total electricity output; and 3. 4.5. RenewableRenewable electricity energyelectricity consumption; output; share of total electricity output; and 4. Renewable electricity share of total electricity output; and 5. Renewable energy consumption; 3.15. RenewableRenewable Energies—Primary energy consumption; Production 3.1 RenewableAccording Energies—Primary to Eurostat, in renewable Production energy primary production are included all types of green 3.1. Renewable Energies—Primary Production energy: wind, hydro, photovoltaic, bioenergy, and geothermal. At the EU level, renewable energy According to Eurostat, in renewable energy primary production are included all types of green primaryAccording production to Eurostat, is constantly in renewable increasing energy with an primary average production of 5%. The aregreatest included increase all types can be of noted green energy: wind, hydro, photovoltaic, bioenergy, and geothermal. At the EU level, renewable energy inenergy: 2012 and wind, 2011 hydro, was the photovoltaic, only year when bioenergy, this indicator and geothermal. decreases. At the EU level, renewable energy primary production is constantly increasing with an average of 5%. The greatest increase can be noted primaryAs can production be seen isin constantlyFigure 5, renewable increasing withenergy an averageprimary ofproduction 5%. The greatest is increasing increase in can the be case noted of in 2012 and 2011 was the only year when this indicator decreases. Romania.in 2012 and Due 2011 to wasthis fact, the only in Romania year when it was this possibl indicatore to decreases. achieve the EU targets in terms of share of As can be seen in Figure 5, renewable energy primary production is increasing in the case of renewableAs can since be seen2015.in At Figure the level5, renewable of primary energy produc primarytion from production all products is a increasingconstant decline in the starting case of Romania. Due to this fact, in Romania it was possible to achieve the EU targets in terms of share of withRomania. 2012 can Due be to mentioned. this fact, in Romania it was possible to achieve the EU targets in terms of share of renewable since 2015. At the level of primary production from all products a constant decline starting renewable since 2015. At the level of primary production from all products a constant decline starting with 2012 can be mentioned. with 2012120,000 can be mentioned.

100,000120,000

100,00080,000

60,00080,000 GWh 40,00060,000 GWh

20,00040,000

20,0000 Bulgaria Czechia Hungary Poland Romania Slovenia Slovakia 0 Bulgaria Czechia2007 Hungary2010 2013 Poland2016 Romania Slovenia Slovakia

2007 2010 2013 2016 Figure 5. Renewable energy primary production, Source: Own representation based on EUROSTAT dataFigure [12]. 5. Renewable energy primary production, Source: Own representation based on EUROSTAT Figuredata [12 5.]. Renewable energy primary production, Source: Own representation based on EUROSTAT data [12]. At the same time, it can be noticed that, compared to the other EU Member States, Romania At the same time, it can be noticed that, compared to the other EU Member States, Romania ranks second in terms of renewable energy primary production. Along with Poland, which ranks first ranksAt second the same in termstime, ofit can renewable be noticed energy that, primary compared production. to the other Along EU withMember Poland, States, which Romania ranks in relation to this indicator, Romania is at a considerable distance from other former communist EU ranksfirst in second relation in toterms this of indicator, renewable Romania energy isprimary at a considerable production. distance Along with from Poland, other former which communist ranks first members. inEU relation members. to this indicator, Romania is at a considerable distance from other former communist EU members. 3.23.2. Share Share of of Renewables Renewables in in Electricity Electricity Production Production 3.2 ShareTheThe ofshare share Renewables of of renewable renewable in Electricity energy energy Production sources sources (Figure (Figure 66)) withinwithin the globalglobal powerpower generation mix has been growing quickly since the end of the 2000s [23]. beenThe growing share quicklyof renewable since theenergy end ofsources the 2000s (Figure [23]. 6) within the global power generation mix has been growing quickly since the end of the 2000s [23]. 50.00

50.0040.00

40.0030.00 % 30.0020.00 % 20.0010.00

10.000.00 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 0.00 Figure 6. Share of renewables in electricity production (%), worldwide evolution, Source: Figure 6. Share1997 1998of renewables 1999 2000 2001 in 2002 electricity 2003 2004 production 2005 2006 2007 (%), 2008 worldwide 2009 2010 2011 evolution, 2012 2013 2014Source: 2015 2016Own Own representation based on Enerdata [23]. representation based on Enerdata [23]. Figure 6. Share of renewables in electricity production (%), worldwide evolution, Source: Own representation based on Enerdata [23].

Energies 2018, 11, 3289 7 of 22

Energies 2018, 11, x FOR PEER REVIEW 7 of 21 Between 2000 and 2016, the share of renewable energy registered an annual growth of 1.6% Between 2000 and 2016, the share of renewable energy registered an annual growth of 1.6% worldwide. The European Union recorded a 4.6% increase per year, which overtakes the increase by worldwide. The European Union recorded a 4.6% increase per year, which overtakes the increase by 3.4%, reached by Europe as a continent. 3.4%, reached by Europe as a continent. Romania did not exceed the EU average, having a 3.1%/year increase between 2000 and 2016. Romania did not exceed the EU average, having a 3.1%/year increase between 2000 and 2016. Analyzing the share of renewables in electricity production between 2015 and 2016, for Romania, Analyzing the share of renewables in electricity production between 2015 and 2016, for Romania, it a it a 7.8% increase can be observed. This value is 4.5% over the worldwide level, and 1.7% over the 7.8% increase can be observed. This value is 4.5% over the worldwide level, and 1.7% over the European Union level, which indicates a significant involvement in renewable energy. At Romania’s European Union level, which indicates a significant involvement in renewable energy. At Romania's level, the fast expansion that took place at the EU level between 2006 and 2014 continues, even though level, the fast expansion that took place at the EU level between 2006 and 2014 continues, even though at the Union level the penetration of RES in the European Union power mix has been increasing more at the Union level the penetration of RES in the European Union power mix has been increasing more slowly since then. slowly since then. As can be observed in Figure7, at the EU level, that the share of renewable energy in energy As can be observed in Figure 7, at the EU level, that the share of renewable energy in energy consumption is on an ascending trend. There are countries like Romania, Hungary, or Bulgaria that consumption is on an ascending trend. There are countries like Romania, Hungary, or Bulgaria that achieved the target share for 2020. It is expected that all the countries of the EU will achieve this limit achieved the target share for 2020. It is expected that all the countries of the EU will achieve this limit by the end of the current decade. by the end of the current decade. 30

25

20 2007 2010 15 2013 10 2016 consumption (%) TARGET 5 Share of renewable energy in Share of renewable energy 0 EU (28 Bulgaria Czechia Hungary Poland Romania Slovenia Slovakia countries)

Figure 7. Share of renewable energy in energy consumption, Source: Own representation based on Figure 7. Share of renewable energy in energy consumption, Source: Own representation based on EUROSTAT data [12]. EUROSTAT data [12]. 3.3. Renewable Electricity Output and Renewable Electricity Share of Total Electricity 3.3 Renewable Electricity Output and Renewable Electricity Share of Total Electricity Renewable electricity is the quantity of electricity generated by renewable power plants in total Renewableelectricity generatedelectricity is by the all quantity types of of plants. electricity In generated the renewable by renewable power plants power are plants included in total energy electricitygeneration generated factories by all that types use of renewable plants. In resources, the renewable including power wind, plants solar are PV, included solar thermal, energy hydro, generationmarine, factories geothermal, that use solid renewable biofuels, renewableresources, municipalincluding waste,wind, liquidsolar PV, biofuels, solar andthermal, biogas. hydro, Electricity marine,production geothermal, from solid hydro biofuels, pumped renewable storage is excludedmunicipal [24 waste,]. The renewableliquid biofuels, electricity and sharebiogas. of total Electricityelectricity production output from (%) represents hydro pumped electricity storage generated is excluded by power [24]. plantsThe renewable using renewable electricity resources share as a of totalshare electricity of total electricityoutput (%) output represents [24]. electricity generated by power plants using renewable resources asRomania a share hasof total increased electricity itsrenewable output [24]. energy output by 55% in the studied period, 1997–2014. RomaniaThe minimum has increased output wasits renewable in 2003, with energy a value output of by 47.7 55% PJ causedin the studied by political period, tensions, 1997–2014. economic The minimumstagnation output and the was aging in or2003, high with wear a ofvalue production of 47.7 capacitiesPJ caused (Figureby political8). From tensions, the perspective economic of the stagnationrenewable and the electricity aging or share high with wear respect of producti to totalon electricity capacities output (Figure a fluctuating 8). From trendthe perspective can be highlighted. of the renewableThe lowest electricity point was share also inwith 2003, respect 24%, when to to thetal renewableelectricity electricityoutput a fluctuating share was affected trend can by thebe same highlighted.causes asThe renewable lowest point energy was output. also Atin the2003, level 24%, of 2014,when the the renewable renewable electricity electricity share share was was 41.6% of affectedtotal by electricity the same causes output, as with renewable an ascending energy perspective output. At the for level this indicator. of 2014, the renewable electricity share was 41.6% of total electricity output, with an ascending perspective for this indicator.

Energies 2018, 11, x FOR PEER REVIEW 8 of 21 Energies 2018, 11, 3289 8 of 22 Energies100.0 2018, 11, x FOR PEER REVIEW 97.7 8 of 21 90.0 72.8 68.0 73.1 100.080.0 72.5 97.7 65.8 66.1 62.0 70.0 63.1 58.7 90.0 57.8 59.5 53.7 56.0 60.0 68.0 72.8 57.6 53.7 80.0 53.2 47.7 73.1 72.5 65.8 66.1 62.0 50.070.0 63.1 58.7 53.7 57.8 59.5 40.0 56.0 60.0 57.6 53.7 53.2 47.7 30.050.0 20.040.0 10.030.0 20.00.0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 10.0 0.0 Renewable electricity output (PJ) Renewable electricity share of total electricity output (%) 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Figure 8. RenewableRenewable electricity electricity output output (PJ) evolution (TJ)Renewable vs renewable electricity electricityshare of total share electricity of total output electricity (%)

output evolution (%), Source: Own representation based on EUROSTAT and World Bank data [12,24]. Figure 8. Renewable electricity output evolution (TJ) vs renewable electricity share of total electricity output evolution (%), Source: Own representation based on EUROSTAT and World Bank data [12,24]. 3.4 Renewableoutput evolution Energy (%),Consumption Source: Own representation based on EUROSTAT and World Bank data [12,24]. 3.4. Renewable Energy Consumption 3.4 RenewableRenewable Energy energy Consumption consumption is the share of renewable energy in total final energy consumption.Renewable The energy first consumptionstudy, belonging is the to share Kraft of and renewable Kraft [25], energy which in total investigates final energy the consumption. relationship Renewable energy consumption is the share of renewable energy in total final energy betweenThe first study,energy belonging consumption to Kraft and and economic Kraft [25 growth,], which started investigates a segment the relationship that has been between extensively energy consumption. The first study, belonging to Kraft and Kraft [25], which investigates the relationship researched.consumption Apergis and economic and Payne growth, indicate started that a segment energy thatconsumption has been extensively is positively researched. associated Apergis with between energy consumption and economic growth, started a segment that has been extensively economicand Payne growth indicate [26]. that Contrariwise, energy consumption in an empiri is positivelycal research associated for 27 European with economic countries, growth empirical [26]. researched. Apergis and Payne indicate that energy consumption is positively associated with resultsContrariwise, do not confirm in an empirical causality research between for renewabl 27 Europeane energy countries, consumption empirical and gross results domestic do not product confirm economic growth [26]. Contrariwise, in an empirical research for 27 European countries, empirical (GDP)causality [27]. between renewable energy consumption and gross domestic product (GDP) [27]. results do not confirm causality between renewable energy consumption and gross domestic product Energy consumption consumption was was a a special special issue issue researched researched during during the the time. time. A Asignificant significant number number of (GDP) [27]. articlesof articles investigate investigate the the causal causal nexuses nexuses between between CO CO2 2emissions,emissions, economic economic growth growth and and energy Energy consumption was a special issue researched during the time. A significant number of consumption [27–30]. [27–30]. Bhattacharya Bhattacharya et al. investig investigateate the the effects effects of of renewable renewable energy energy consumption on articles investigate the causal nexuses between CO2 emissions, economic growth and energy the economic growth of major renewable energy consumingconsuming countries in the world [28]. [28]. In the same consumption [27–30]. Bhattacharya et al. investigate the effects of renewable energy consumption on time, SaidiSaidi et et al. al. investigate investigate the impactthe impact of economic of economic growth andgrowth CO2 emissionsand CO2 onemissions energy consumption on energy the economic growth of major renewable energy consuming countries in the world [28]. In the same consumptionfor a global panel for a of global 58 countries panel of [ 3058]. countries [30]. time, Saidi et al. investigate the impact of economic growth and CO2 emissions on energy Renewable energyenergy consumptionconsumption is is the the ratio ratio between between the the gross gross inland inland consumption consumption of energy of energy from consumption for a global panel of 58 countries [30]. fromrenewable renewable sources sources and the and total the (primary) total (primary) gross inland gross energyinland consumptionenergy consumption calculated calculated for a calendar for a Renewable energy consumption is the ratio between the gross inland consumption of energy calendaryear [31]. year The share[31]. The of energy share consumptionof energy consumption from renewable from energyrenewable provides energy a broad provides indication a broad of from renewable sources and the total (primary) gross inland energy consumption calculated for a indicationprogress towards of progress reducing towards the environmentalreducing the environmental impact of energy impact consumption. of energy consumption. calendar year [31]. The share of energy consumption from renewable energy provides a broad As presented in Figure 99,, RomaniaRomania recordedrecorded aa fluctuatingfluctuating trendtrend inin termsterms ofof renewablerenewable energyenergy indication of progress towards reducing the environmental impact of energy consumption. consumption. In the the period period 1997–2003, 1997–2003, Romania was situated below the worldwide average. Starting As presented in Figure 9, Romania recorded a fluctuating trend in terms of renewable energy with the year 2007, Romania beat year after year the worldworld average.average. The The year year 2007 had a special consumption. In the period 1997–2003, Romania was situated below the worldwide average. Starting significancesignificance for this country: it it was was the the year year of of Romania’s Romania’s accession accession to to the the EU. EU. For For the the studied studied period, period, with the year 2007, Romania beat year after year the world average. The year 2007 had a special 1997–2014, Romania’s renewable energy consumptionconsumption waswas aboveabove thethe EUEU average.average. significance for this country: it was the year of Romania’s accession to the EU. For the studied period, 1997–2014, Romania’s Romaniarenewable energy consumptionWorld was above the EUEuropean average. Union 30.00 18.00 Romania World European Union 16.00 25.00 30.00 14.0018.00 20.00 12.0016.00 25.00 10.0014.00 15.00 20.00 8.0012.00 10.00 6.0010.00 15.00 4.008.00 5.00 10.00 2.006.00 0.00 0.004.00 5.00 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2.00 0.00Figure 9. RenewableRenewable energy energy consumption consumption (% (% of tota totall finalfinal energyenergy consumption),consumption), Source:Source: Own 0.00 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 representation based on World BankBank datadata [[24].24]. Figure 9. Renewable energy consumption (% of total final energy consumption), Source: Own representation based on World Bank data [24].

Energies 2018, 11, 3289 9 of 22

Energies 2018, 11, x FOR PEER REVIEW 9 of 21 EnergiesEven if,2018 in, 11 2011,, x FOR this PEER indicator REVIEW experienced a slight decrease (from 24.1% in 2010 to 21.1%9 of in21 2011) due to theEven global if, in 2011, crisis, this after indicator 2012 its experienced trajectory a has slight continually decrease (from improved. 24.1% in In 2010 2014 to the21.1% maximum in 2011) value Even if, in 2011, this indicator experienced a slight decrease (from 24.1% in 2010 to 21.1% in 2011) of renewabledue to the global energy crisis, consumption after 2012 its was trajectory reached has for continually the studied improved. period. In 2014 the maximum value due to the global crisis, after 2012 its trajectory has continually improved. In 2014 the maximum value of renewable energy consumption was reached for the studied period. ofIn renewable Figure 10 energy, can be consumption highlighted wa thats reached Romania for the records studied the period. second-best final energy consumption In Figure 10, can be highlighted that Romania records the second-best final energy consumption after Poland.In Figure In 10, almost can be allhighlighted analyzed that indicators, Romania records Romania the second-best ranks second, final energy in terms consumption of renewable after Poland. In almost all analyzed indicators, Romania ranks second, in terms of renewable energy energyafter among Poland. former In almost communist all analyzed countries. indicators, It Romania can be outlinedranks second, that in this terms country of renewable tries to energy strengthen among former communist countries. It can be outlined that this country tries to strengthen its its performanceamong former notcommunist only in countries. the energy It can sector, be out butlined alsothat regardingthis country its tries economic to strengthen growth its and performance not only in the energy sector, but also regarding its economic growth and environmental performance not only in the energy sector, but also regarding its economic growth and environmental environmentalperformance. performance. performance. 2016 2013 2010 2007 2016 2013 2010 2007

Slovakia Slovakia Slovenia Slovenia Romania Romania Poland Poland Hungary Hungary Czechia Czechia Bulgaria Bulgaria 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 Final energy consumption (GWh) Final energy consumption (GWh)

Figure 10. Final energy consumption (GWh), Source: Own representation based on World Bank Figure 10. Final energy consumption (GWh), Source: Own representation based on World Bank data [24]. dataFigure [24]. 10. Final energy consumption (GWh), Source: Own representation based on World Bank data [24]. 3.5.3.4 Electrical Electrical Capacity Capacity 3.4 Electrical Capacity With 11.16 GW installed capacity in 2016, Romania ranks first of the seven EU countries analyzed WithWith 11.16 11.16 GW GW installed installed capacity capacity in in 2016,2016, Romani Romaniaa ranks ranks first first of ofthe the seven seven EU countries EU countries analyzed analyzed regarding renewable energy installed capacity (Figure 11). The weakest installed capacity regardingregarding renewable renewable energy energy installed installed capacity capacity (Figure (Figure 11). The 11) weakest. The weakest installed installed capacity capacity performance performance is recorded by Hungary, with only 1.12 GW, in 2016. Compared with 2005 a 622% is recordedperformance by Hungary, is recorded with by onlyHungary, 1.12 with GW, only in 2016. 1.12 GW, Compared in 2016. with Compared 2005 a with 622% 2005 increase a 622% of this increase of this indicator is registered by Poland can be observed, especially between 2010 and 2013. indicatorincrease is of registered this indicator by Polandis registered can by be Poland observed, can be especially observed, betweenespecially 2010between and 2010 2013. and It2013. reached It reached 8.11 GW capacity in about 10 years, starting from 1.09 GW in 2005. In the case of Romania, It reached 8.11 GW capacity in about 10 years, starting from 1.09 GW in 2005. In the case of Romania, 8.11renewable GW capacity energy in installed about 10 capacity years, startingmeans almost from 46% 1.09 of GW the inentire 2005. installed In the capacity. case of Romania, It is important renewable renewable energy installed capacity means almost 46% of the entire installed capacity. It is important energyto underline installed that capacity all seven means former almost communist 46% of the countries entire installed made significant capacity. Itprogress is important in terms to underlineof to underline that all seven former communist countries made significant progress in terms of thatrenewable all seven energy former installed communist capacity. countries made significant progress in terms of renewable energy renewable energy installed capacity. installed capacity. 12.00 12.00 10.00 10.00 8.00 8.00 6.00 GW 6.00 GW 4.00 4.00 2.00 2.00 0.00 0.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Bulgaria Czechia Hungary Poland Romania Slovenia Slovakia Bulgaria Czechia Hungary Poland Romania Slovenia Slovakia

Figure 11. Renewable energy capacity evolution between 2005 and 2016 (GW), Source: Own representation based on IRENA data [32]. Energies 2018, 11, x FOR PEER REVIEW 10 of 21

Figure 11. Renewable energy capacity evolution between 2005 and 2016 (GW), Source: Own Energies 2018, 11, 3289 10 of 22 representation based on IRENA data [32].

4.4. The The Renewable Renewable Energy Energy Sources Sources and and the the Current Current Situation Situation in in Romania Romania InIn the the European European Union, Union, renewables renewables account account for for 80% 80% of of new new capacity capacity and and wind power becomes becomes thethe leading leading source source of of electricity electricity soon soon after after 2030, 2030, due due toto strongstrong growthgrowth bothboth onshoreonshore andand offshoreoffshore [[33].33]. Renewable energy sources are steadily becoming a greater part of the global energy mix [34]. World Renewable energy sources are steadily becoming a greater part of the global energy mix [34]. energy consumption rises 28% between 2015 and 2040 [35]. Renewables capture two-thirds of global World energy consumption rises 28% between 2015 and 2040 [35]. Renewables capture two-thirds of investment in power plants to 2040 as they become, for many countries, the least-cost source of the global investment in power plants to 2040 as they become, for many countries, the least-cost source of new generation [36]. the new generation [36]. The development of electricity production from renewable sources led to a decrease in GHG The development of electricity production from renewable sources led to a decrease in GHG emissions from the process. The amount of greenhouse-gas emissions resulting emissions from the electricity generation process. The amount of greenhouse-gas emissions resulting from the production of electricity decreased from 438 g/kWh in 2011 to 326 g/kWh in 2015. The from the production of electricity decreased from 438 g/kWh in 2011 to 326 g/kWh in 2015. influence of renewable energy in domestic electricity was significant, mainly due to the replacement The influence of renewable energy in domestic electricity was significant, mainly due to the replacement of polluting fossil-fuel electricity. of polluting fossil-fuel electricity. Currently, the annual production of energy from renewable resources in Romania is Currently, the annual production of energy from renewable resources in Romania is approximately approximately 6550 ktoe (kilotons of oil equivalent). A technical potential of 8000 ktoe remains 6550 ktoe (kilotons of oil equivalent). A technical potential of 8000 ktoe remains unexploited, unexploited, with biomass and biogas representing 47%, solar energy 19%, wind energy 19%, with biomass and biogas representing 47%, solar energy 19%, wind energy 19%, hydropower energy hydropower energy 14%, and geothermal energy 2%. 14%, and geothermal energy 2%.

4.1.4.1 WindWind TheThe share share of of wind wind power power in thein the EU’s EU’s total total installed installed power power capacity capacity has increasedhas increased from 6%from in 6% 2005 in to2005 18% to in 18% 2017. in Having 2017. Having overtaken overtaken coal in 2016coal asin the2016 second as thelargest second form largest of power form of generation power generation capacity incapacity the EU, in wind the EU, power wind is nowpower closely is no catchingw closely up catching with gas up [ 33with]. gas [33]. WindWind energyenergy generated generated byby wind wind power power remains remains advantageous, advantageous, asas RomaniaRomania hashas thethe highesthighest potentialpotential in in Southeast Southeast Europe Europe in in the the field field of of wind wind energy, energy, and and Southeast Southeast Dobrogea Dobrogea is ranked is ranked second second in thein the continent. continent. Wind Wind turbines turbines use ause perpetual a perpetual renewable renewable energy energy that is that never is never consumed consumed and start and from start afrom wind a speedwind ofspeed only of 3.5 only m/s. 3.5 In m/s. Dobrogea In Dobrogea the speed the speed is 7 m/s is 7 at m/s a height at a height of 100 of meters. 100 meters. AsAs cancan be be observed observed in in Figure Figure 12 12,, starting starting with with 2007, 2007, Romania Romania began began to to produce produce wind-based wind-based energy.energy. The The primary primary production production recorded recorded a a slight slight increase increase every every year. year. If If in in 2007 2007 primary primary production production waswas only only 0.3 0.3 toe, toe, in in 2016 2016 the the primary primary production production reached reached 566 566 toe. toe. The The greatestgreatest increase increase was was registered registered inin 2010 2010 and and it it consists consists of of an an enlarging enlarging capacity capacity with with 3188% 3188% compared compared with with 2009. 2009. The The average average increase increase ofof primary primary production production in windin wind energy energy was 431%was between431% between 2007 and 2007 2016. and This 2016. trend This was intrend accordance was in withaccordance the increase with atthe the increase level of at all the renewable level of all energy renewable sources. energy In 2016, sources. a slight In 2 decrease016, a slight of 7% decrease in wind of primary7% in wind production primary can production be highlighted. can be Simultaneously,highlighted. Simultaneously, wind gross inland wind production gross inland followed production the samefollowed trend. the same trend.

8000.0 80000 7000.0 70000 6000.0 60000 5000.0 50000 4000.0 40000

GWh 3000.0 30000 2000.0 20000 1000.0 10000 0.0 0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Primary production - Renewable energies (GWh) Renewable energies

Gross inland consumption - Wind (GWh) Primary production - Wind (GWh) Primary production - Renewable energies (GWh)

Figure 12. Figure 12.Main Main wind wind indicators indicators evolution evolution between between 2007 2007 and and 2016, 2016, Source: Source: Own Own research research based based on on Eurostat data [12]. Eurostat data [12].

Energies 2018, 11, 3289 11 of 22

Energies 2018, 11, x FOR PEER REVIEW 11 of 21 In Romania, five wind zones were identified, depending on the environmental and In Romania, five wind zones were identified, depending on the environmental and topo- topo-geographicalgeographical conditions, conditions, considering considering the level the of level the energy of the potential energy potentialof such resources of such at resources an average at an averageheight height of 50 meters of 50 meters and over and (Figure over (Figure13). 13).

FigureFigure 13. 13.Romanian Romanian wind wind resources, resources, Source: Source: National Meteorological Meteorological Administration Administration (ANM) (ANM) [37]. [ 37].

TheThe results results of the of recordedthe recorded measurements measurements show show that that Romania Romania is in is a temperatein a temperate continental continental climate, withclimate, high energy with high potential, energy potential, especially especially in the littoral in the littoral and coastal and coastal areas areas (mild (mild climate), climate), as as well well as in alpineas in areas alpine with areas plateaus with plateaus and mountain and mountain valleys valley (severes (severe climate). climate). It is It estimated is estimated that that the the annual annual wind energywind potential energy potential in Romania in Romania is around is around 23 TWh. 23 TWh. In 2015,In 2015, a total a total of aboutof about 27.3 27.3 GW GW of newof new power power generation generation capacity capacity were were connected connected inin thethe EUEU and 18.2and GW 18.2 were GW decommissioned, were decommissioned, resulting resulting in 9.1 GWin 9.1 of GW new of net new capacity. net capacity. Renewable Renewable energy energy sources (RES)sources accounted (RES) foraccounted 20.6 GW for or 20.6 75.6% GW ofor all75.6% new of powerall new generationpower genera capacitytion capacity [38]. [38]. Romania's wind potential is the highest in Southeast Europe [39]. The wind energy in Romania Romania’s wind potential is the highest in Southeast Europe [39]. The wind energy in Romania witnessed considerable development over the five-year period. A total of 75 wind farms with a power witnessed considerable development over the five-year period. A total of 75 wind farms with a power range from 0.008 to 600 MW and an average of 40 MW were built [39]. range fromAt the 0.008 level to of 600 2012, MW in andRomania an average were installed of 40 MW 923 wereMW that built represents [39]. an increase of 94% of the totalAt thewind level power of 2012,capacity. in Romania Cumulative were wind installed power capacity 923 MW of that Romania represents has reached an increase 1905 MW of 94% at of the totalthe end wind of 2012, power surpassing capacity. the Cumulative estimates windof ANRE power and capacitythe National of Romania Action Plan has reachedfor Renewable 1905 MW at theEnergy end of[40]. 2012, Simultaneously, surpassing theTocan estimates has analyzed of ANRE the main and investments the National in Actionwind energy Plan in for Romania Renewable Energy[40]. [ 40Representative]. Simultaneously, investment Tocans are has presented analyzed in the Table main 2. investments in wind energy in Romania [40]. Representative investments are presented in Table2. Table 2. Major investments in Romanian wind energy production. Table 2. Major investments in Romanian wind energy production. Country of Capacity Total Investments Company Place of Investment Origin (MW) (EUR)Total Investments Company Country of Origin Capacity (MW) Place of Investment (EUR) Cez Czech Republic 600 1.1 billion Fantanele-Cogealac Cez Czech Republic 600 1.1 billionTulcea Fantanele-Cogealac and Caras Severin EnelEnel Green Green Power Power Italy 180 180 330 330 million million and Caras County GDF SUEZ 48 80 million Braila County GDF SUEZ France 48 80 million Braila County Verbund Austria 100 320 million Verbund Austria 100 320 million Tulcea County Lukerg Russia & Italy 84 135 million Tulcea County EDPLukerg Renewables Russia Portugal & Italy 84 270 135 200 million million Tulcea Ialomita County County EDP Renewables Portugal 270 200 million Ialomita County Source: Own research. Source: Own research As can be observed in the previous table, the main investor in wind energy in Romania is Cez. OnAs the can second be observed and third in place, the previous both for table,installed the capacity main investor and total in of wind investments energy are in Romaniaranked Enel is Cez. On theGreen second Power and and third EDP Renewables. place, both for installed capacity and total of investments are ranked Enel Green Power and EDP Renewables. Dobrogea region became, in 2014, the largest wind farm in Central and Eastern Europe, with hundreds of 2.5 MW wind turbines installed all over the Constanta County, in sites as: Energies 2018, 11, 3289 12 of 22

Cogealac, Fantanele, Pestera, Independenta, Chirnogeni, Silistea, Targusor, and Crucea localities and surrounding areas. In April 2016 Romania’s electricity production accounted 23% of total energy production coming from wind energy. According to the state-based transportation company, , the wind was the second most important power source, after hydropower. In April 2016, the wind energy production amounted to 1941 MW whereas hydropower reached 2192 MW, representing 26% of the total [41]. After 2017, one of the largest projects in the field is represented by the NERO Renewables project, which intends to build in Romania three wind farms with 362 turbines and a total installed capacity of about 1 GW, with 400 MW above the capacity of the Fântânele-Cogealac onshore park, currently the largest of its kind in Europe [42]. Given that the Netherlands expects to miss the target of a 14% share of renewable energy in total energy production for 2020 and Romania has already reached its 2020 target, NERO proposed to the Dutch Government to “adopt” the project in Romania. Thus, through the European mechanism “joint projects” for cooperation in the renewable energy sector, the Netherlands will be able to co-finance the wind farms developed by NERO in Romania, and the energy produced by them will be included in the renewable energy production of the Netherlands. At the end of 2017, Romania has 3209 MW installed wind power capacity. This means that 12.2% of the average annual electricity demand is covered by wind [33]. Wind energy investments in 2017 were less geographically concentrated than in 2016. Wind energy investments accounted for 52% of the new clean energy finance in 2017, compared to 86% in 2016. Germany was the largest investor in 2017 with a total financing activity of €6.7 bn for the construction of new onshore and offshore wind farms.

4.2. Photovoltaic According to Romania Photovoltaic Market Outlook 2014–2025, Romania was one of the most promising emerging markets for photovoltaic energy investments in 2013 amongst SEE countries [43]. Romania’s solar potential is widespread throughout the country. Romania benefits from about 210 sunny days per year. The southeastern region of Romania, the west, the center, and the east of the country are the best places to place a solar park. Solar energy is quoted by many market specialists with good chances to turn into the new boom in the green energy segment. It is very difficult to assess the number of photovoltaic (PV) parks existing in Romania because no institution centralizes this information and does not have a cumulative record. As of 2016, consulting and comparing information from various sources, not all official, we found that 962 photovoltaic power stations or photovoltaic parks with a combined installed capacity of 4871.66 MW were built up to last year. A total of 212 of them produce less than 1 MW and 112 have a production below 2 MW (Table3). Most PV parks are built in Ialomita county (59 parks), and the largest installed capacity is in Brasov County, at 287.5 MW.

Table 3. No. of PV farms and installed capacity in Romania, 2016.

Region Number of PV Farms Installed Capacity (MW) North-East 26 28.15 South-East 91 149.51 South Muntenia 302 827.95 Southwest Oltenia 134 393.47 West 96 148.85 Northwest 178 430.22 Center 110 568.93 -Ilfov 25 17.58 Source: Own research Energies 2018, 11, 3289 13 of 22 Energies 2018, 11, x FOR PEER REVIEW 13 of 21

DuringDuring the the 1970s 1970s and and 1980s, 1980s, Romania Romania was was an an early early player player in in the the solar solar power power industry, industry, installing installing aroundaround 800,000 800,000 m m22 ofof early-technology early-technology solar solar cells, cells, which which placed placed the the country country third third worldwide worldwide as as far far asas the the total total surface surface of of photovoltaic photovoltaic panels panels was was co concerned.ncerned. Although Although the the support support scheme scheme was was one one of of thethe main main investment investment drivers drivers lately, lately, the the solar solar sector sector has has lagged. lagged. In In 2011 2011 the the production production of of electricity electricity usingusing solar solar PV PV was was insignificant insignificant in in Romania, Romania, while while in in April April 2012 2012 only only two two PV PV plants plants were were operational, operational, eacheach amounting amounting to to 1 1 MW. MW. The The solar solar installed installed capacity capacity recorded recorded an an increase increase from from 500 500 kW kW in in 2008 2008 to to 1.31.3 GW GW in in 2016 2016 (Figure (Figure 14).14).

2 500

2 000

1 500

1 000

500

0 2010 2011 2012 2013 2014 2015 2016 2017

Electricity capacity (MW) Electricity generation (GWh)

Figure 14. Main photovoltaic indicators evolution between 2010 and 2016, Source: Own research based Figure 14. Main photovoltaic indicators evolution between 2010 and 2016, Source: Own research on Eurostat and IRENA data [32]. based on Eurostat and IRENA data [32]. The most important increase of the electricity capacity can be underlined between 2013 and 2014, whenThe the most capacity important has grown increase from of the 761 electricity MW to 1293 capacity MW. Incan 2013, be underlined the Romanian between incentive 2013 and structure 2014, whensubsidizes the capacity up to a has total grown of six greenfrom 761 certificates MW to 1293 per megawatt-hour MW. In 2013, the of Romanian electricity produced.incentive structure Demand subsidizessignificantly up exceededto a total of expectations, six green certificates and in response per megawatt-hour the Romanian of electricity Energy Regulatory produced. Authority Demand significantly(ANRE) recommended exceeded expectatio a reductionns, in and green in certificatesresponse the from Romanian six to three Energy in March Regulatory 2013. Authority (ANRE)The recommended result of this incentivea reduction was in agreen 3361% cert increaseificates from in solar six installationsto three in March over 2013. the 30 megawatts installedThe result in 2012. of this Romania’s incentive rise was is aa byproduct 3361% increase of the in longstanding solar installations forces over governing the 30 PVmegawatts demand, installedwhich shifted in 2012. development Romania’s rise from is regiona byproduct to region of the based longstanding on rapid changes forces governing to incentives. PV demand, With an whichattractive shifted incentive development program, from acceptable region insolation to region and based geographic on rapid accessibility changes to for incentives. vendors andWith EPCs, an attractiveRomania incentive met all the program, criteria foracceptable a strong insolation PV market. and However, geographic similar accessibility to other for markets, vendors a rapidand EPCs,phase-out Romania of incentives met all the caused criteria a significant for a strong drop PV inmarket. installations. However, similar to other markets, a rapid phase-out of incentives caused a significant drop in installations. 4.3. Hydropower 4.3 Hydropower Hydropower is one of the main contributors to the total electricity generation in Romania, with a contributionHydropower of around is one 30% of the of themain total contributors power delivered to the total to the electricity grid. In 2010 generation hydropower in Romania, plants hadwith a atotal contribution installed of capacity around of 30% over of 6400 the total MW power and produced delivered 19.8 to the TWh grid. electricity In 2010 [hydropower44]. plants had a totalCompared installed capacity to 2008, of in 2016over 6400 the hydropower MW and produced installed 19.8 capacity TWh electricity slightly increase [44]. from 6.38 GW to 6.71Compared GW. Additionally, to 2008, in in the 2016 same the period,hydropower a drop installed of the hydropower capacity slightly production, increase from from 1.46 6.38 Mtoe/year GW to 6.71in 2008 GW. to Additionally, 1.25 Mtoe/year in in the 2016 same can beperiod, remarked. a drop The of largest the hydropower company in production, the hydropower from sector 1.46 Mtoe/yearis a state-owned in 2008 company to 1.25 Mtoe/year named Hidroelectrica. in 2016 can be remarked. In 2017, this The company largest company produced in 14.04 the hydropower TWh in 208 sectorhydropower is a state-owned plants with company 6444 MW named installed Hidroelectrica. power. At theIn 2017, level this of 2017, company Hidroelectrica produced posted 14.04 TWh EUR in260 208 million hydropower gross profitplants in with the 6444 first MW nine installed months ofpo thiswer. year,At the when level itsof 2017, turnover Hidroelectrica stood at EUR posted 525 EURmillion 260 [ 45million]. At thegross level profit of 2016, in the the first values nine ofmonths the produced of this year, energy when and its of turnover the power stood installed at EUR in 525 the millionhydropower [45]. At facilities the level in of operation 2016, the in values Romania of th aree produced represented energy in Table and4 of. the power installed in the hydropower facilities in operation in Romania are represented in Table 4.

Energies 2018,, 11,, 3289x FOR PEER REVIEW 14 of 21 22

Energies 2018, 11, x FOR PEER REVIEWTable 4. Hydropower facilities in operation, 2016. 14 of 21 Table 4. Hydropower facilities in operation, 2016. Type of Facility Number of Plants Installed Power (MW) Energy Produced (GWh/year) Table 4. Hydropower facilities in operation, 2016. TypeLarge of hydropower Facility Number 107 of Plants Installed 6104.5 Power (MW) Energy Produced 16,630.00 (GWh/year) Type ofPump Facility Number of5 Plants Installed Power 91.5 (MW) Energy Produced n/a (GWh /year) Large hydropower 107 6104.5 16,630.00 LargeSmall Pumphydropower hydropower 107 418 5 6104.5 573.2 91.5 16,630.00 1458.00 n/a Small hydropowerPump Total 5 418 91.56769.7 573.2 18,088.00 n/a 1458.00 Small hydropower Total 418 Source: Own 573.2 6769.7 research 1458.00 18,088.00 Total 6769.7 18,088.00 In Romania, hydropower capacity hasSource: grown Own from research year to year. If in 2000 the electricity capacity was 6120 MW, in 2016 it reached 6734 MW.Source: This meansOwn research a 10% increase in capacity in 15 years (Figure 15).In Romania, hydropower capacity has grown from year to year. If in 2000 the electricity capacity was 6120In Romania,MW, in 2016 hydropower it reached capacity 6734 MW. has This grown means from a 10% year increase to year. Ifin in capacity 2000 the in electricity 15 years (Figure capacity 15).was 6120 25 000 MW, in 2016 it reached 6734 MW. This means a 10% increase in capacity in 15 years (Figure80 15). 70 20 000 25 000 8060 7050 20 15 000 000 6040 15 10 000 000 5030 4020 10 0005 000 3010 20 5 000 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 10 0 Electricity capacity (MW) Electricity generation (GWh) Electricity production (TWh) 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Figure 15.Electricity Main hydropower capacity (MW) indicators Electricityevolution generation between (GWh) 2000 and 2016,Electricity Source: proOwnduction research (TWh) after

FigureEurostat 15. dataMain [12]. hydropower indicators evolution between 2000 and 2016, Source: Own research after FigureEurostat 15. Main data [hydropower12]. indicators evolution between 2000 and 2016, Source: Own research after EurostatAt the datalevel [12]. of 2005, a slight decrease in electricity capacity was recorded, –7 MW. In 2014 the largestAt increase the level in of electricity 2005, a slight capacity decrease of 117 in MW electricity added for capacity the analyzed was recorded, period can –7MW. be remarked. In 2014 the largestAtWorld the increase level Energy of in electricity2005, Trilemma a slight capacity 2016 decrease considers of 117 in MWelec thattricity added emer capacityging for the economies analyzed was recorded, have period the –7 can potential MW. be remarked.In 2014to double the largestenergyWorld increase production Energy in electricity Trilemmaby 2050, capacity including 2016 considers of 117 low-power MW that added emerging hy fordropower the economies analyzed plants period have [46]. theIn can potentialthe be sameremarked. toreport double is energyhighlightedWorld production Energy that hydropower Trilemma by 2050, 2016 includingcontributes considers low-power more that than emer hydropower 16%ging of economies total plantsenergy have [needs46 ].the In potentialand the supplies same to reportdouble 76% of is energyhighlightedtotal energy production produced that hydropowerby 2050, from renewableincluding contributes low-powersources. more Inthan Rohymania,dropower 16% ofin 2016, total plants energythe [46].expl needsoitableIn the and potentialsame supplies report reached 76%is highlightedof69–75% total energyof thatits capacity. hydropower produced An fromimportant contributes renewable share more sources.of thanthe remaining 16% In Romania,of total exploitable energy in 2016, needs potential, the and exploitable supplies representing potential76% of6–8 totalreachedTWh/year, energy 69–75% producedcan be of valued its from capacity. in renewable the An future. important sources. This repr share In esentsRo ofmania, the a remainingnew in 2016, installed the exploitable explcapacityoitable potential, of potentialapprox. representing 1700–2700 reached 69–75%6–8MW TWh/year,(Figure of its capacity.16). can be An valued important in the share future. of the This remaining represents exploitable a new installedpotential, capacity representing of approx. 6–8 TWh/year,1700–2700 can MW be (Figure valued 16 in). the future. This represents a new installed capacity of approx. 1700–2700 MW (Figure 16).

Technically Economically Exploitable - In operation - feasible - 9000- feasible - 8500-9500 MW 6769 MW 10000MW Technically14435 MW Economically Exploitable - In operation - feasible - 9000- feasible - 8500-9500 MW 6769 MW Figure14435 16. MWRomanian hydropower10000MW potential, Source: Own research based on ANRE data [20]. Figure 16. Romanian hydropower potential, Source: Own research based on ANRE data [20]. To extend the hydropower network in Romania, the national authorities could speed the completionToFigure extend of 16. various Romanianthe hydropower plants hydropower at various network potential, stages in of Source:Romani execution. Owna, the Thereresearch national are based 14 author large on ANRE hydropowerities data could [20]. plantsspeed andthe eightcompletion small hydropowerof various plants plants at with various an installed stages of capacity execution. of 416 There MW are and 14 an large annual hydropower energy output plants of 1329.40andTo eight extend MWh/year, small the hydropower hydropower which were plants startednetwork with before inan Romaniinstalled 1989. a, capacitythe national of 416 author MWities and couldan annual speed energy the completionoutput of 1329.40of various MWh/year, plants at which various were stages started of execution. before 1989. There are 14 large hydropower plants 4.4. Bioenergy and eight small hydropower plants with an installed capacity of 416 MW and an annual energy output4.4 BioenergyRomania of 1329.40 is MWh/year, the state of which Europe were best started suited before for bio-economy 1989. with a localization coefficient of 3.9. This means that the share of people working in the Romanian bio-economy is almost four Romania is the state of Europe best suited for bio-economy with a localization coefficient of 3.9. 4.4times Bioenergy the share of those working in the bio-economy of the rest of the European Union. In fact, This means that the share of people working in the Romanian bio-economy is almost four times the this "concentration" in the bio-economy is mainly due to a very large concentration of the labor market shareRomania of those is the working state of inEurope the bio-economybest suited for of bi o-economythe rest of with the aEuropean localizati onUnion. coefficient In fact, of 3.9. this This means that the share of people working in the Romanian bio-economy is almost four times the share of those working in the bio-economy of the rest of the European Union. In fact, this

Energies 2018, 11, x FOR PEER REVIEW 15 of 21 Energies 2018, 11, 3289 15 of 22

"concentration" in the bio-economy is mainly due to a very large concentration of the labor market in agriculturein . in Romania. One Oneof the of most the most important important aspect aspect that bio-economy that bio-economy refers refers to is bioenergy. to is bioenergy. In theIn category the category of bioenergy of bioenergy can be can included: be included: (1) Solid (1) Solid biomass biomass including including waste; waste; (2) Biogas (2) Biogas and (3) and Liquid(3) Liquid Biofuels. Biofuels. BiomassBiomass is isand and will will remain remain the the main main type type of of RES RES in in Romania. Romania. The The main main form form of of energy energy biomass biomass producedproduced in in Romania Romania is isfirewood firewood (95%), (95%), being being an an important important generator generator of of GHG. GHG. Data Data on on solid solid biomass biomass productionproduction presents presents a a high high degree ofof uncertaintyuncertainty (about (about 20%) 20%) compared compared to to a centrala central estimate estimate of 42 of TWh 42 TWhin 2015, in 2015, uncertainty uncertainty also reflected also reflected in heating in heat consumptioning consumption and energy and balances energy ofbalances Romania. of Romania. Household Householdfirewood consumptionfirewood consumption is estimated is at estimated 36 TWh; withat 36 the TWh; mention with thatthe themention predominant that the biomasspredominant is used biomassin the production is used in ofthe heat, production respectively of heat, heat andrespectively electricity heat in cogeneration. and electricity The in modeling cogeneration. results The show modelinga 20% decrease results inshow firewood a 20% consumption decrease in firewood by 2030, whichconsumption will lead by to 2030, a slight which decrease will lead in production to a slight to decrease39 TWh. in production to 39 TWh. WeWe are are closer closer to to the the truth truth considering considering biomass biomass as as a abridge bridge between between fossil fossil resources resources and and truly truly non-pollutingnon-polluting resources—so, resources—so, at at best; best; the the use use of of biom biomassass can can mean mean a period a period of oftransition, transition, long long enough, enough, towardstowards a atruly truly non-polluting non-polluting energy energy system. system. For For now, now, the the European European Commission's Commission’s report report only only succeedssucceeds in in highlighting highlighting the the benefits benefits of of biomass biomass over over the the use use of of fossil fossil resources, resources, but but at at the the same same time time highlightshighlights the the possible possible large-scale risksrisks that that inefficient inefficient use use of biomassof biomass can bring.can bring. Thus, Thus, it would it would require requirea reassessment a reassessment of the importanceof the importance biomass biomass has to ha haves to in have the plansin the ofplans the EUof the countries. EU countries. StartingStarting in in 2009, 2009, a acontinuous continuous growth growth both both for for el electricityectricity capacity capacity and and electricity electricity generation generation can can bebe observed observed (Figure (Figure 17). 17 ).The The greatest greatest growth growth of of this this indicator indicator can can be be highlighted highlighted between between 2013 2013 and and 2014,2014, at at 126%. 126%. This This increase increase is isdue due to toseveral several major major investments investments in inthe the field field of of biomass biomass of of which which a a significantsignificant one one inaugurated inaugurated is isGenesis Genesis BIOPARTNER BIOPARTNER.. It Itisis a aRomanian Romanian holding holding company company formed formed in in partnershippartnership with with Baupartner Baupartner Romania Romania and and Vireo Vireo En Energyergy from from Sweden Sweden with with a acapacity capacity of of 1 1MW/h MW/h electricelectric and and 1.2 1.2 MW/hMW/h heatheat andand process process 49 49 tons tons daily daily amount amount of organic of organic substrate. substrate. The project The involvedproject involvedan investment an investment of approximately of approximately 5 million 5 EURmillion [47 ].EUR Another [47]. Another major investment major investment in the field, in the 11 millionfield, 11EUR, million was EUR, made, was starting made, in starting 2012, by in KDF2012, Energy. by KDF Energy.

4,500.0 500 4,000.0 450 3,500.0 400 350 3,000.0 300 2,500.0 250 2,000.0 200 1,500.0 150 1,000.0 100 500.0 50 0.0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Biomass - Gross inland consumption Biomass - Electricity capacity (MW) Biomass - Electricity generation (GWh)

Figure 17. Main indicators evolution for biomass, 2000–2016, Source: Own research based on Eurostat Figuredata [17.12]. Main indicators evolution for biomass, 2000–2016, Source: Own research based on Eurostat data [12]. In terms of biomass electricity generation, the most important increase can be observed between 2009In and terms 2010. of biomass If in 2009 electricity the value generation, of this indicator the mo wasst important 10 GWh, in increase 2010 it reachedcan be observed 110 GWh. between Another 2009significant and 2010. increase If in 2009 was the between value of 2013 this and indicator 2014, fromwas 10 202 GWh, GWh in to 2010 454 it GWh. reached 110 GWh. Another significantStarting increase in 2010, was frombetween the 2013 perspective and 2014, of from primary 202 GWh production to 454 andGWh. gross inland consumption, it canStarting be seen in a2010, negative from correlation the perspective (Figure of 18 primary). A bigger production value of and gross gross inland inland consumption consumption, is due it to canimports be seen in a the negative field of correlation liquid biofuels, (Figure because 18). A major bigger companies value of ingross fuel inland distribution consumption are foreign is due entities. to importsFor the in analyzed the field period, of liquid the total biofuels, amount because of biogas major production companies was consumedin fuel distribution by the domestic are foreign market. entities.Since 2014, For biogasthe analyzed primary period, production the total is decreased amount fromof biogas 19.3 to production 17.7 Mtoe inwas 2016. consumed by the domestic market. Since 2014, biogas primary production is decreased from 19.3 to 17.7 Mtoe in 2016.

Energies 2018, 11, 3289 16 of 22 Energies 2018, 11, x FOR PEER REVIEW 16 of 21

300.0 30.0

27.3 257.1 250.0 25.0

224.8 202.9 203.3 19.3 200.0 186.6 18.3 20.0 19.6 17.7 165.1 167.1 150.0 15.0 116.1 13.1 128.0

100.0 10.0 78.8

50.0 5.0 3.1 0.6 1.3 0.0 1.1 0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Liquid biofuels - Primary production Liquid biofuels - Gross inland consumption Biogas - Primary production

Figure 18. Main indicators evolution for biofuels and biogas, 2007–2016, Source: Own research based Figure 18. Main indicators evolution for biofuels and biogas, 2007–2016, Source: Own research based on Eurostat data [12]. on Eurostat data [12]. The Bio-Based Industries Consortium (BIC) report has identified the main local biomass sources The Bio-Based Industries Consortium (BIC) report has identified the main local biomass sources that could be used as sustainable raw materials for bio-industries as well as key actors in relevant that could be used as sustainable raw materials for bio-industries as well as key actors in relevant sectors and industry-based development opportunities based on these activities [48]. sectors and industry-based development opportunities based on these activities [48]. According to the same report, agriculture and forestry, together with other industries, such as According to the same report, agriculture and forestry, together with other industries, such as food processing, the wood industry, and the paper and pulp industry, can produce large quantities of food processing, the wood industry, and the paper and pulp industry, can produce large quantities waste and other unused or less used materials, being available as raw material for biomass processing of waste and other unused or less used materials, being available as raw material for biomass industries [48]. processing industries [48]. In 2012, Transelectrica reported that there are about 35 MW using agricultural or forestry waste to In 2012, Transelectrica reported that there are about 35 MW using agricultural or forestry waste produce light, which means that the field has already attracted investments of 70 million EUR. to produce light, which means that the field has already attracted investments of 70 million EUR. In 2017, a new state aid scheme to support investments in ‘less exploited’ renewable resources, In 2017, a new state aid scheme to support investments in ‘less exploited’ renewable resources, such as biogas, biomass and geothermal energy, has been approved in Romania. The new support such as biogas, biomass and geothermal energy, has been approved in Romania. The new support scheme from the Romanian government has a total budget of over EUR 100,000 ($107,000). A total scheme from the Romanian government has a total budget of over EUR 100,000 ($107,000). A total of of 85% of the budget comes from the European fund for regional development and 15% from the 85% of the budget comes from the European fund for regional development and 15% from the state’s state’s funds. funds. 5. Perspectives on Renewable Energy Development 5. Perspectives on Renewable Energy Development The renewable energy sources to be stimulated in Romania for the period 2030–2050 are: wind energy,The hydropower,renewable energy geothermal sources energy,to be stimulated biomass, in and Romania solar energy.for the period As previous 2030–2050 research are: wind has energy,underlined, hydropower, Romania geothermal has the potential energy, for biomass, green energy and productionsolar energy. as As follows: previous 65% research for biomass, has underlined,17% for wind Romania energy, has 12% the for potential solar energy, for green 4% for energy small production hydropower as plants,follows: and 65% 2% for for biomass, geothermal 17% forenergy wind [49 energy,]. 12% for solar energy, 4% for small hydropower plants, and 2% for geothermal energyMoreover, [49]. the European Parliament voted for a project that requires 35% of Europe’s energy consumptionMoreover, in the 2030 European to be renewable. Parliament Each voted Member for a pr Stateoject will that have requires a target 35% from of Europe's which it energy will be consumptionable to deviate in by 2030 a maximum to be renewable. of 10%, under Each certainMember conditions, State will includinghave a target Romania. from Inwhich 2030, it each will EUbe ableMember to deviate State willby a have maximum to ensure of 10%, that 12%under of certain the energy conditions, consumed including in the transport Romania. sector In 2030, comes each from EU Memberrenewable State sources. will have to ensure that 12% of the energy consumed in the transport sector comes from Accordingrenewable tosources. a map compiled by the National Meteorological Administration, this potential is allocatedAccording zonal asto follows:a map compiled by the National Meteorological Administration, this potential is allocated zonal as follows: 1. Delta—photovoltaic; 1. —photovoltaic; 2. Dobrogea—wind and photovoltaic; 2. Dobrogea—wind and photovoltaic; 3. Moldova—small hydropower, wind and biomass;

Energies 2018, 11, 3289 17 of 22

Energies 2018, 11, x FOR PEER REVIEW 17 of 21 3. Moldova—small hydropower, wind and biomass; 4. Carpathians4. Carpathians Mountains—biomass Mountains—biomass and small hydropower; and small hydropower;

5. Transylvania—small5. Transylvania—small hydropower; hydropower; 6. Western Plain—geothermal; 6. Western Plain—geothermal; 7. Subcarpathian—biomass and small hydropower; and 7. Subcarpathian—biomass and small hydropower; and 8. Romanian plain—biomass, geothermal and photovoltaic. 8. Romanian plain—biomass, geothermal and photovoltaic. In order to encourage companies and householders to develop such systems, the Romanian governmentIn order to encouragehas created companies support tools and such householders as the green to develop certificates such market, systems, investment the Romanian financing governmentsolutions, has or createdincentive support regulatory tools framework. such as the green certificates market, investment financing solutions,Policies or incentive continue regulatory to support framework. renewable electricity worldwide, increasingly through competitive auctionsPolicies continuerather than to support feed-in renewabletariffs, and electricity the transformation worldwide, increasinglyof the power through sector competitiveis amplified by auctionsmillions rather of thanhouseholds, feed-in tariffs,communiti and thees and transformation businesses investing of the power dire sectorctly in is distributed amplified bysolar millions PV. of households,The electricity communities produced and businesses in Romania, investing between directly 2011 and in distributed2015, increased solar by PV. approximately 4.5%, andThe the electricity reduction produced in greenhouse-gas in Romania, emissions between 2011from andthe 2015,electricity increased production by approximately process decreased 4.5%, by and5.8 the million reduction tons. in greenhouse-gasThis decrease reflects emissions the fromchange-o the electricityver in the productionelectricity production process decreased process, by from 5.8 millionfossil fuels, tons. Thisparticularly decrease coal, reflects to theelectricity change-over generated in the from electricity renewable production sources, process, in particular, from fossil wind fuels,power. particularly coal, to electricity generated from renewable sources, in particular, wind power. For 2030,For 2030, the estimationsthe estimations show show a more a more significant significan increaset increase only only for energy for energy consumption consumption in the in the machine,machine, machinery, machinery, and equipment and equipment industry, respectively,industry, respectively, in freight transport. in freight Heating transport. consumption Heating is likelyconsumption to decrease is slightlylikely to by decrease increasing slightly energy by efficiency.increasing energy efficiency. In theIn mediumthe medium and and long long term, term, an increase an increase in e-mobility in e-mobility is expected, is expected, eliminating eliminating exhaust exhaust fumes, fumes, especiallyespecially in the in urbanthe urban environment. environment. For theFor electricthe electric vehicle vehicle to contribute to contribute substantially substantially to reducing to reducing air pollution,air pollution, the energythe energy transition transition to renewable to renewable energy energy sources sources and and other other low-emission low-emission electricity electricity technologies,technologies, or sustainable or sustainable technologies technologies for for storing storing significant significant amounts amounts of of electricity, electricity, will will have have to to be be completed.completed. ForFor the yearthe year 2030, 2030, an an optimal optimal scenario scenario shows shows a decreasea decrease in in natural natural gas gas to to 106106 TWhTWh (27%),(27%), the the maintenancemaintenance ofof crudecrude oiloil consumptionconsumption (26%)(26%) andand thethe reductionreduction ofof coal’scoal's contribution.contribution. Instead,Instead, the the contributioncontribution of of nuclear nuclear energy energy is is doubled doubled and and energy energy from from biomass biomass (including (including biogas) biogas) increases increases to to 51 TWh.51 TWh. Renewable Renewable energy energy capacities capacities in electricity in electricity generation generation grow grow to 37 to TWh 37 TWh (Figure (Figure 19). 19).

Biomass/Waste

Hydro

Wind

Photovoltaic

Geothermal 2030 (GWh) 2015 (GWh)

FigureFigure 19. Renewable 19. Renewable energy energy mix evolutionmix evolution between between 2015 2015 and 2030,and 2030, Source: Source: Own Own research research based based on on ANREANRE data [data20]. [20].

ForFor Romania, Romania, frequent frequent changes changes to theto the Green Green Certificates Certificates support support scheme scheme in recentin recent years, years, aggregatedaggregated with with the the country-specific country-specific risk risk of anof an emerging emerging economy, economy, place place the the cost cost of of RES RES capital capital at at oneone of of the the highest highest levels levels in in the the EU. EU. Therefore, Therefore, there there is is a riska risk that that Romania’s Romania's equitable equitable participation participation in in meetingmeeting the the EU’s EU's common common targets targets for for RES RES in in 2030 2030 will will be be costly. costly. Access to the current green certificates support scheme closed at the end of 2016, so new investments in wind, photovoltaic, micro-hydro power, or biomass capacities are unlikely in the period 2017–2020, except those receiving co-financing from European Structural Funds.

Energies 2018, 11, 3289 18 of 22

Access to the current green certificates support scheme closed at the end of 2016, so new investments in wind, photovoltaic, micro-hydro power, or biomass capacities are unlikely in the period 2017–2020, except those receiving co-financing from European Structural Funds. In an optimistic scenario, after 2020, Romania is succeeding in attracting investment in new RES-based capacities by reducing capital costs without the need for new support schemes. This development enhances competitiveness in attracting investment in related industries. Under low capital cost and without a support scheme, a gradual increase of 1500 MW wind power and 1400 MW of photovoltaic capacity over the 2020–2030 period is projected. In total, the increase in RES-based capacity between 2017 and 2030 will be lower than in 2011–2016. Biomass occupies a central place in the electricity mix, but the development potential is still high, especially through efficiency and the introduction of new technologies such as biorefineries and biogas production capacities. Judicious management of the forest fund is a basic condition for the energetic use of wood. Geothermal and solar resources are only marginally exploited in Romania, with substantial potential for increasing the use of these resources in the future decades. Biomass is the main form of RES in Romania’s energy mix and will retain this role in the long run. After 2030, the analysis of the potential for biomass development at European level indicates the possibility of a considerable increase of the surface area used in Romania effectively in annual and perennial lignocelluloses cultures. Total biomass production in Romania could increase from 47 TWh in 2015 to 184 TWh in 2050, of which 119 TWh are lignocellulose biomass cultures. Thus, biomass could become Romania’s main energy product, as much of it could be for exports, after transformation into finished energy products with high added value. The problem of waste management will be solved by transforming into energy products, biogas production, and energy-producing oils, but the resulting volume is lower than the potential of lignocelluloses plants. A 45 TWh increase in RES is allocated, almost equal between wind, solar, and geothermal. Hydropower is not expected to increase substantially, but growth is not excluded if new investments are made in hydroelectric power plants on the main water courses—the greatest potential is still on the Danube. There is also a need for strategies to ensure energy security. Thus, by 2030, Romania should streamline the capacity and the way of electricity production. Modern and flexible technologies are required to deliver optimal energy and reduce carbon emissions. The digitization of the entire sector, especially in terms of transport and distribution of energy should be considered. The production of biofuels and biogas has a high potential. In 2015, the production was 1500 GWh for biofuels and 450 GWh for biogas. For 2030, the modeling results indicate an increase of 4100 GWh of biofuels, amid the development of the agricultural sector and, to a lesser extent, the upgrading of sewage treatment plants. These values can help to reach the national required target for 2020 of 10% RES share in the transport sector. Waste energy production may increase in Romania, but the focus should be on selective collection, recycling, and recycling of raw materials rather than incineration. In the short term, the following measures are proposed to ensure the development of the energy sector: strategic stocks and enough capacity reserves; ensuring the calibration of the National Energy System; balancing, backup, and storage systems; protection of critical infrastructure from cyber-attacks or terrorism. Long-term domestic measures refer to: increasing the capacity of energy governance—legislation, regulations, and administrative acts; maintaining a diversified and balanced energy mix as well as a high level of demand-side coverage with internal resources; maintaining an integrated nuclear cycle and providing expertise in the nuclear field; completing investment in transport and distribution networks in order to increase their efficiency and achieve the transition to smart grids; and reducing energy poverty, including by increasing energy efficiency for vulnerable consumers. From the GHG reduction perspective, Romania can propose a series of targets that can be achieved by 2050 with the improvements and adjustments presented below (Table5). Energies 2018, 11, 3289 19 of 22

Table 5. Decarbonization targets for 2020, 2030, and 2050.

Indicator Unit 2015 2020 2030 2050 GHG reduction % compared to 1990 54 55 62 75 GHG reduction—non-ETS % compared to 2005 8 0 2 30 (Emission Trading System) Share of RES % 26.3 24 27 47 Share of RES–energy % 43.7 44 55 78 Share of RES–transportation % 4.6 10 13 60 Energy intensity toe/mil €2013 319 300 170 50 Source: Own research based on Eurostat, World Bank and IRENA data [24,32]

Based on actual perspectives of development for the energy sector, the GHG reduction compared to 1990 will be only 75%. The European target for this indicator is 80%, but Romania can have a reasonable contribution. It is expected that Romania reaches the 10% target for the share of RES in transportation by 2020. If by 2020, the increase in the RES–transportation share will be supported by the biofuel mix in petrol and diesel until the 10% target is reached; in 2020–2030, the share of RES–transportation will grow especially because of the increase in the share of electric mobility, on the railway and road segments. For Romania, an 80% GHG reduction by 2050 is not excluded, but it is possible only by maturing new technologies, along with cost savings. The energy sector contributes essentially to the development of Romania through its profound influence on the competitiveness of the economy, the quality of life, and the environment. The Romanian energy sector needs to become more robust economically, technologically advanced, and less polluting in order to sustain long-term consumer expectations. There are five major themes that are highlighted that should be developed until 2030, including: (1) storage and energy mix; (2) infrastructure; (3) the role of biomass in households heating; (4) increasing buildings energy efficiency; or (5) mitigating energy poverty.

6. Conclusions Several factors are making Romania emerge as an attractive and alternative location for renewable energy investors who are increasingly concerned about lower returns from more established markets in the Western European countries. It can be observed that electricity demand in Romania declined starting with the 1990s and several older thermal power stations have been decommissioned. In the last years, due to the fact that Romania registered a continuous economic growth, the economy expands, and the demand is steadily growing. This trend is expected to continue in future decades. Therefore, Romania was able to meet its target of covering 24% of its final energy consumption from renewable sources much in advance (2013) of the 2020 deadline. A 7% primary energy demand is estimated between 2030 and 2050, from 394 to 365 TWh. The share of fossil fuels in the primary energy mix also drops, from 61% to 47%, being replaced by RES, increasing from 22% to 35%. Romania cannot assume an ambitious RES target for 2030, the target proposed to the European Commission is 27%. A faster increase in the share of RES is possible, but it could compromise the objective of raising the quality of life in rural areas. Romania could introduce a support mechanism for developing the potential of biomass in modern and efficient forms, but further development of photovoltaic and solar photovoltaic parks will continue only when the cost of these technologies makes them competitive without support schemes. This is expected to take place in the next decade, so new photovoltaic and photovoltaic capacities will be built in Romania even in the absence of a support scheme after 2020. The modeling results confirm a gradual but more sustained increase in capacity wind and photovoltaic for the entire 2020–2030 period. Energies 2018, 11, 3289 20 of 22

Author Contributions: Conceptualization: ¸S.D.C.and A.C.; data curation: A.C.-D.; formal analysis: M.T.F.; funding acquisition: C.S.M.; investigation: A.C. and A.C.-D.; methodology: ¸S.D.C. and A.C.; project administration: ¸S.D.C.and A.C.; Resources, C.S.M., A.C., A.C.-D., and M.T.F.; supervision: ¸S.D.C.;validation: C.S.M.; Visualization, C.S.M. and M.T.F.; writing—original draft: A.C. and A.C.-D.; writing—review and editing: ¸S.D.C.and C.S.M. Funding: This research and the APC was funded by the project “ESPESA—Electromechanical Systems and Power Electronics for Sustainable Applications”, Horizon 2020, project number 692224. Conflicts of Interest: The authors declare no conflict of interest.

References

1. Debirmas, A. Recent advances in biomass conversion technologies. Energy Educ. Sci. Technol. 2000, 6, 19–40. 2. Panwara, N.L.; Kaushik, S.C.; Surendra, K. Role of renewable energy sources in environmental protection: A review. Renew. Sustain. Energy Rev. 2011, 15, 1513–1524. [CrossRef] 3. European Court of Auditors. Renewable Energy for Sustainable Rural Development: Significant Potential Synergies, but Mostly Unrealised; European Union: Luxembourg, 2018; p. 13. 4. Eurostat Newsletter. Renewable Energy in the EU; European Union: Bruxelles, Belgium, 2016. 5. European Environment Agency. Renewable 2017; European Environment Agency: Copenhagen, Denmark, 2017. 6. Sen, S.; Ganguly, S. Opportunities, barriers and issues with renewable energy development—A discussion. Renew. Sustain. Energy Rev. 2016, 69, 1170–1181, Article in press. [CrossRef] 7. Jayed, M.; Masjuki, H.; Kalam, M.; Mahlia, T.; Husnawan, M.; Liaquat, A. Prospects of dedicated biodiesel engine vehicles in Malaysia and Indonesia. Renew. Sustain. Energy Rev. 2011, 15, 220–235. [CrossRef] 8. Mahlia, T.; Abdulmuin, M.; Alamsyah, T.; Mukhlishien, D. An alternative energy source from palm wastes industry for Malaysia and Indonesia. Energy Convers. Manag. 2001, 42, 2109–2118. [CrossRef] 9. Ong, H.; Mahlia, T.; Masjuki, H. A review on energy pattern and policy for transportation sector in Malaysia. Renew. Sustain. Energy Rev. 2012, 16, 532–542. [CrossRef] 10. BP. Statistical Review of World Energy 2015. Available online: http://www.bp.com/content/dam/bp/pdf/ energy-economics/statistical-review-2015/bp-statisticalreview-of-world-energy-2015-full-report.pdf (accessed on 2 November 2018). 11. BP. Energy Outlook 2035. Available online: http://www.bp.com/content/dam/bp/pdf/energy-economics/ energy-outlook-2015/bp-energy-outlook-2035-booklet.Pdf (accessed on 2 November 2018). 12. Renewable Energy Statistics. Eurostat-Statistics Explained 2016. Available online: http://ec.europa.eu/ eurostat/statistics-explained/index.php/ (accessed on 5 November 2018). 13. Haas, R.; Panzer, C.; Resch, G.; Ragwitz, M.; Reece, G.; Held, A. A historical review of promotion strategies for electricity from renewable energy sources in EU countries. Renew. Sustain. Energy Rev. 2011, 15, 1003–1034. [CrossRef] 14. Clodnitchi, R.; Chinie, A.C. Factors of impact on the evolution of electricity markets from renewable energy sources: A comparison between Romania and Germany. Manag. Mark. 2015, 10, 35–51. [CrossRef] 15. Badger, J.; Helmut, F.; Hahmann, A.N. Wind-climate estimation based on mesoscale and microscale modeling: Statistical–dynamical down-scaling for wind energy applications. Appl. Meteorol. Climatol. 2014, 53, 1901–1919. [CrossRef] 16. Reikard, G.; Robertson, B.; Bidlot, J.R. Combining wave energy with wind and solar: Short-term forecasting. Renew. Energy 2015, 81, 442–456. [CrossRef] 17. Abbasi, S.A.; Abbasi, T.; Abbasi, T. Impact of wind-energy generation on climate: A rising specter. Renew. Sustain. Energy Rev. 2016, 59, 1591–1598. [CrossRef] 18. Feurtey, É.; Ilinca, A.; Sakout, A.; Saucier, C. Institutional factors influencing strategic decision-making in energy policy: A case study of wind and Quebec (Canada). Renew. Sustain. Energy Rev. 2016, 59, 1455–1470. [CrossRef] 19. Karthikeya, B.R.; Negi, P.S.; Srikanth, N. Wind resource assessment for urban renewable energy application in Singapore. Renew. Energy 2016, 7, 403–414. [CrossRef] 20. Agentia Nationala pentru Reglementare in domeniul Energiei (ANRE). Raport Privind Progresul Înregistrat în Îndeplinirea Obiectivelor Nationale de Eficien¸tă Energetică; ANRE: Bucures, ti, Romania, 2016. 21. Warren, B. Renewable Energy Country Attractiveness Index (RECAI); Ernst Young: London, UK, 2015. Energies 2018, 11, 3289 21 of 22

22. Suomen, L. Renewable Energy Country Attractiveness Index (RECAI) Overview. 2014. Available online: https://pt.slideshare.net/lahienergialiitto/recai-overview (accessed on 10 March 2018). 23. Enerdata. Global Energy Statistical Yearbook 2017. Available online: https://yearbook.enerdata.net/ renewables/renewable-in-electricity-production-share.html (accessed on 18 March 2018). 24. World Bank. Sustainable Energy for All (SE4ALL) Database. 2018. Available online: https://data.worldbank. org/indicator/EG.ELC.RNEW.ZS (accessed on 5 February 2018). 25. Kraft, J.; Kraft, A. On the relationship between energy and GNP. J. Energy Dev. 1978, 3, 401–403. 26. Apergis, N.; Payne, J.E. The emissions, energy consumption, and growth nexus: Evidence from the Commonwealth of independent states. Energy Policy 2010, 38, 650–655. [CrossRef] 27. Menegaki, A.N. Growth and renewable energy in Europe: A random effect model with evidence for neutrality hypothesis. Energy Econ. 2011, 33, 257–263. [CrossRef] 28. Bhattacharya, M.; Paramati, S.R.; Ozturk, I.; Bhattacharya, S. The effect of renewable energy consumption on economic growth: Evidence from top 38 countries. Appl. Energy 2016, 162, 733–741. [CrossRef] 29. Esso, L.J.; Keho, Y. Energy consumption, economic growth and carbon emissions: Cointegration and causality evidence from selected African countries. Energy 2016, 114, 492–497. [CrossRef]

30. Saidi, K.; Hammami, S. The impact of CO2 emissions and economic growth on energy consumption in 58 countries. Energy Rep. 2015, 1, 62–70. [CrossRef] 31. European Environment Agency (EEA). Renewable Energy Consumption—Outlook from IEA. 2009. Available online: https://www.eea.europa.eu/data-and-maps/indicators/renewable-energy-consumption-outlook- from-iea (accessed on 18 March 2018). 32. IRENA. International Renewable Energy Agency Database. 2018. Available online: http://resourceirena. irena.org/gateway/dashboard/index.html (accessed on 15 July 2018). 33. Wind Europe. Wind in power 2017—Annual Combined Onshore and Offshore Wind Energy Statistics. 2018. Available online: https://windeurope.org/wp-content/uploads/files/about-wind/statistics/WindEurope- Annual-Statistics-2017.pdf (accessed on 10 August 2018). 34. Zhang, D.; Wanga, J.; Linb, Y.; Si, Y.; Huang, C.; Yang, J.; Li, W. Present situation and future prospect of renewable energy in China. Renew. Sustain. Energy Rev. 2017, 76, 865–871. [CrossRef] 35. U.S. Energy Information Administration. International Energy Outlook 2017; U.S. Energy Information Administration: Washington, DC, USA, 2017. 36. International Energy Agency. World Energy Outlook 2017; International Energy Agency: Paris, France, 2017. 37. Harta Potentialului Energetic Eolian Din Romania. Available online: http://free-energy-monitor.com/index. php/energy/harta_potential_eolian (accessed on 20 May 2018). 38. Roberto, A.L.; Arnulf, W.J. Photovoltaics and wind status in the European Union after the Paris Agreement. Renew. Sustain. Energy Rev. 2018, 81, 2460–2471. [CrossRef] 39. Dragomir, G.; S, erban, A.; Năstase, G.; Brezeanu, A.I. Wind energy in Romania: A review from 2009 to 2016. Renew. Sustain. Energy Rev. 2016, 64, 129–143. [CrossRef] 40. Tocan, M.C. Wind energy sector in Romania- present and perspectives. Ecoforum 2014, 3, 33–38. 41. REVE. Wind Energy Reaches a Quarter of Romania’s Power Production. 2016. Available online: https://www.evwind.es/2016/04/18/wind-energy-reaches-a-quarter-of-romanias-power-production/55962 (accessed on 25 June 2018). 42. Balkan Green Energy News. Six Big Wind Turbine Manufacturers Interested in NERO Project in Romania. 2017. Available online: https://balkangreenenergynews.com/six-big-wind-turbine-manufacturers-interested- nero-project-romania/ (accessed on 9 September 2018). 43. Renewable Market Watch. Romania Solar Photovoltaic (PV) Power Market. Outlook 2016–2025; Renewable Market Watch: London, UK, 2017. 44. World Energy Council. Hydropower in Romania; World Energy Council: London, UK, 2016. 45. Romania Insider. Largest Energy Producer in Romania to Inaugurate New Hydropower Plant. Available online: https://www.romania-insider.com/hidroelectrica-new-hydro-power-plant/ (accessed on 21 September 2018). 46. World Energy Council. World Energy Trilemma 2016; World Energy Council: London, UK, 2016. 47. Flanders Investment & Trade. Renewable Energy in Romania; Flanders Investment & Trade: Brussels, Belgium, 2015. Energies 2018, 11, 3289 22 of 22

48. Bio-Based Industries Consortium. Mapping the Potential of Romania for the Bio-Based Industry; Bio-Based Industries Consortium: Brussels, Belgium, 2018. 49. Smart City Blog. Potent,ialul de Energie Regenerabilă Din România. Available online: http://smartcityblog. ro/potentialul-de-energie-regenerabila-din-romania/ (accessed on 15 July 2018).

© 2018 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).