Romania Power Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 19.02 gigawatt |
| Market Volume (2029) | 25.04 gigawatt |
| CAGR (2024 - 2029) | 5.66 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Romania Power Market Analysis
The Romania Power Market size is estimated at 19.02 gigawatt in 2024, and is expected to reach 25.04 gigawatt by 2029, growing at a CAGR of 5.66% during the forecast period (2024-2029).
- In the medium period, factors such as the growing demand for renewable energy, upcoming investments in the energy sector, and supportive renewable energy policies are driving the market's growth.
- On the other hand, the high initial investment cost, long investment return period on projects, and limited natural resources are expected to restrain the Romanian power market during the forecast period.
- Nevertheless, the Romanian government announced plans to invest over EUR 22.6 billion (USD 26.7 billion) in the power sector between 2020 and 2030. This is expected to create immense opportunities for the Romanian power market.
Romania Power Market Trends
The Hydropower Segment is Expected to Witness Significant Growth
- Romania's energy mix is dominated by hydrocarbon energy sources such as coal, oil, and natural gas. This scenario is changing fast with the growth of hydropower and solar energy.
- Hydropower is the largest source of renewable energy in Romania. Romania has great potential for more than 9GW, but as of 2023, only 72% of the total hydropower capacity was utilized. Hence, the country has the potential to explore more areas to capture hydroelectric power.
- Romania is seeking to derive more of its energy needs from renewable sources. Romania is seen as a fast-growing hydropower market in Southeast Europe.
- According to the International Renewable Energy Agency (IRENA) Renewable Energy Statistics 2024, the total capacity of hydropower energy sources was 6,666 MW. This is expected to grow significantly with upcoming projects during the forecast period.
- In August 2023, Romania and Bulgaria agreed to develop two Danube hydropower projects. Hidroelectrica, a Romanian state-owned firm, will be the principal contractor for both Danube projects. The two hydropower plants are expected to take five to six years to build. The first power plant will be between Romania's Turnu Măgurele and Bulgaria's Nikopol. It will have an 840 MW capacity.
- Thus, owing to such points, the hydropower segment is expected to witness significant growth during the forecast period.
Supportive Renewable Energy Policies are Expected to Drive the Market
- Romania has announced numerous policies to support the renewable energy sector. These policies help meet the obligations set by the European Union (EU) in terms of greenhouse gas emissions through its legislative package.
- Romania’s Integrated National Plan in the field of Energy and Climate Change (PNIESC) proposes 5.1 GWh of solar and 5.3 GWh of wind capacities by 2030 and increasing the number of energy prosumers.
- Under CfD, the producers enter a private contract with the nominated counterparty, under which the parties agree on a strike price. The producer sells the electricity at market prices. If the market prices are below the strike price, then the counterparty pays the difference to the producer, and if the market price is above the strike price, the producer pays the difference to the counterparty.
- The CfD ensures a consistent electricity price to power plant owners, protecting them from market risks associated with electricity price volatility. Given the success of the CfD in the United Kingdom and the existing obstacles presented by uncertain electricity prices for the power market, CfD is expected to be a major market driver.
- According to the International Renewable Energy Agency (IRENA) Renewable Energy Statistics 2024, the total capacity of renewable energy sources was 11,763 megawatts (MW). This is expected to grow significantly with supportive government policies and upcoming projects during the forecast period.
- Moreover, in January 2024, the Romanian Government announced that they are allocating EUR 815 million in grants to incentivize investments in solar, wind, and hydropower production across Romania. The Ministry of Energy launched two funding calls in March 2024 aimed at small, medium, and large enterprises, disbursing funds from the EU's Modernisation Fund.
- Furthermore, in June 2023, the Romanian government signed a support agreement with state-owned Nuclearelectrica to develop national strategic projects for building Cernavodă nuclear power plant units 3 and 4.
- Therefore, such supportive renewable policies are expected to drive the Romanian power market in the forecast period.
Romania Power Industry Overview
The Romanian power market is moderately fragmented. Some of the key players in the market are Romelectro SA, SGS SA, Enel SpA, Siemens Gamesa Renewable Energy SA, and Vestas Wind Systems AS.
Romania Power Market Leaders
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Romelectro SA
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SGS SA
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Enel S.p.A
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Siemens Gamesa Renewable Energy, S.A.
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Vestas Wind Systems A/S
*Disclaimer: Major Players sorted in no particular order
Romania Power Market News
- March 2024: Finnish renewables investor Korkia partnered with Romania-based Econous Green Energy to develop 600 MW of solar energy capacity in Romania. The initial projects under the partnership are set to receive licensing and be construction-ready by 2025. The projects will produce enough renewable energy to power 200,000 homes in Europe. The projects will offset CO₂ emissions by 300,000kg each year.
- June 2023: Development of the EUR 50 million agrivoltaic parks near Teiuş in the Romanian Alba was set to begin in October 2023. It is scheduled to be finished in 2024. The solar park will cover 80 hectares and contain 119,184 modules, with an annual electrical output of approximately 102 GWh, enough to power about 30,000 houses.
- March 2023: Mass Group Holding (MGH), an Iraqi energy business, expressed interest in investing more than USD 1.2 billion to convert the Mintia coal-fired thermal power plant near Deva in western Romania into a 1.5 GW gas and hydrogen power plant. The first part of the investment will last 24 months, and the project will be finished in 36 months.
Romania Power Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Romania Installed Power Generation and Forecast in GW, till 2029
4.3 Romania Energy Mix 2023
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Market Dynamics
4.6.1 Drivers
4.6.1.1 Increasing Demand for Renewable Energy
4.6.1.2 Upcoming Investments in the Energy Sector and Supportive Renewable Energy Policies
4.6.2 Restraints
4.6.2.1 High Initial Investment Cost and Long Investment Return Period on Projects
4.7 Supply Chain Analysis
4.8 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Source
5.1.1 Thermal
5.1.2 Renewables
5.1.3 Hydropower
5.1.4 Nuclear
5.1.5 Other Sources (Natural Gas and Oil)
5.2 Power Transmission and Distribution (T&D)
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Romelectro SA
6.3.2 SGS SA
6.3.3 Enel SpA
6.3.4 Siemens Gamesa Renewable Energy SA
6.3.5 Vestas Wind Systems AS
6.3.6 Electroalfa
6.3.7 Sunshine Solar Energy SRL
6.3.8 Danagroup.hu
6.3.9 NIVUS GmbH
6.3.10 CEZ Romania
- *List Not Exhaustive
6.4 Market Ranking Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Romanian Government Announced Plans to Invest Over EUR 22.6 billion (USD 26.7 billion) in the Power Sector
Romania Power Industry Segmentation
The power market includes the process of generation of electricity through various sources like fossil fuels, renewable energies, and nuclear energy, as well as the transmission and distribution of electricity to the end user.
The Romanian power market is segmented by source and power transmission and distribution (T&D). By source, the market is segmented into thermal, nuclear, hydropower, renewables, and other sources (natural gas and oil). For each segment, the market sizing and forecasts are based on installed capacity, except for power transmission and distribution (T&D), for which only qualitative analysis will be provided.
| Source | |
| Thermal | |
| Renewables | |
| Hydropower | |
| Nuclear | |
| Other Sources (Natural Gas and Oil) |
Romania Power Market Research FAQs
How big is the Romania Power Market?
The Romania Power Market size is expected to reach 19.02 gigawatt in 2024 and grow at a CAGR of 5.66% to reach 25.04 gigawatt by 2029.
What is the current Romania Power Market size?
In 2024, the Romania Power Market size is expected to reach 19.02 gigawatt.
Who are the key players in Romania Power Market?
Romelectro SA, SGS SA, Enel S.p.A, Siemens Gamesa Renewable Energy, S.A. and Vestas Wind Systems A/S are the major companies operating in the Romania Power Market.
What years does this Romania Power Market cover, and what was the market size in 2023?
In 2023, the Romania Power Market size was estimated at 17.94 gigawatt. The report covers the Romania Power Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Romania Power Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key drivers driving growth in the Romania Power Market?
The key drivers driving growth in the Romania Power Market are a) Growing adoption of cleaner energy sources b) Country's energy transition towards renewable energy sources c) Technological advancements improving efficiency, reliability and supportive renewable energy policies
Romanian Energy Industry Report
The Romania power market is undergoing significant transformation driven by the need for sustainable energy, increasing electricity demand, and regulatory reforms. The market is characterized by a diverse energy mix, including coal, natural gas, hydro, wind, and solar power. Key market segments encompass power generation, transmission, distribution, and electricity trading. The competitive landscape of the Romania energy industry includes a mix of public and private entities in power generation, transmission, and distribution. Despite challenges such as aging infrastructure, financing hurdles, and regulatory uncertainties, the market presents opportunities for investments in renewable energy projects, energy efficiency measures, and grid modernization. The transition towards a low-carbon economy and supportive renewable energy policies are key drivers for the market's growth, while technological advancements and regional cooperation further enhance market potential. Companies within the Romania electrical company sector are well-positioned to capitalize on these emerging opportunities.
The sector analysis provides a comprehensive industry overview, highlighting the market data and industry trends that shape the Romania power market. An analysis report offers detailed market analysis and insights into the industry analysis, allowing stakeholders to understand the current market dynamics. The industry outlook and industry reports present a forward-looking perspective on the market, incorporating industry research and industry sales data to forecast future growth.
Market data and market forecast are crucial for understanding the market growth and identifying market leaders. The market outlook and market overview give a broad perspective on the market's current state and future predictions. Market review and market segmentation provide a detailed breakdown of the market, while market value highlights the economic significance of the sector.
A report example or report pdf can offer a snapshot of the market, showcasing the research conducted by various companies. This comprehensive industry analysis and industry information are essential for stakeholders to make informed decisions. The industry statistics and industry trends provide valuable insights into the market's performance and future trajectory.
In summary, the Romania power market is poised for significant growth, driven by a diverse energy mix, supportive policies, and technological advancements. Understanding the market data, industry outlook, and market segmentation is crucial for stakeholders to navigate the market effectively and capitalize on emerging opportunities.
Romanian Energy Market Report Snapshots
