The report covers the period since August 1 to December 15 – including time series up to full-Q3, 2014. It also includes the detailed energy balances for the year 2013 [released in the fall of 2014]. At the end of the report, you can check the content of the previous similar report – issued on July 30.

LONG-TERM INDUSTRY SCENARIO. Romania’s energy sector is built on relatively abundant primary resources – moderate crude oil reserves, significant natural gas reserves [nearly self-sufficiency and offshore potential], abundant coal deposits and significant wind power potential. Resources are depleting, but the energy-intensive industries are also shrinking as the energy becomes more expensive. There exist a functioning power market and the potential for export of power is robust – yet not supported by sufficient transfer capacities. There exist on the other hand robust potential for the development of such connections [for power and gas] – supported and actually required by the EU directives. The government as well as other policy-makers lack any firm strategy for the sector. In the absence of such internal drive, country’s policies fully rely on the EU directives – meaning adequate but slow response to challenges and acceptance of rather global [than local] optimisation. Excessive green energy support created investment euphoria – but part if the support was already reversed prompting protests from investors.

ONGOING STORIES - POWER. Romania has joined the single day-ahead market of Czech Republic, Slovak Republic and Hungary. Local producers seek export opportunities. Moldova seems a good opportunity, given their dependence on imports from Ukraine. Hidroelectrica opens offices in Hungary and Serbia.

Key Points:
• Romania confirms 3.2% y/y GDP growth in Q3, expects 2-5% growth rates in coming years
• EC agrees to waive green energy surcharge for large Romanian industrial consumers
• IPO at CE Oltenia power generator scheduled for November 2015
• Quintana of US interested in brown coal / power company CE Hunedoara
• Use of primary energy resources up 2.3% y/y in Q3 as more oil refined
• Net use of primary energy resources contracted by 4% y/y to 12.8mn toe in the H1 2014 …
• … - while the gross intake of raw energy resources increased by 3.4% y/y to 15.4mn toe.
• Domestic power production up 8% y/y in the 12M ending Sep-14
• Hydropower output surges by 26% y/y and accounts for 28.5% of total
• Wind power generation increased by 13% y/y and accounted for 7.6% of total
• Romania achieves day-ahead electricity market coupling with CZ-SK-HU area
• Energy market regulator moves to standardise power trading
• Nuclearelectrica accepts sole bid from Chinese company for €6.5bn nuclear plant expansion
• Romania invites Hungary to join €1bn Tarnita reversible hydropower project
• Romania wants Moldova as partner in nuclear power project
• China Huadian Engineering ready to invest in EUR1bn coal-fired power plant in Romania
• Sale of Enel's holdings in Romania remain in limbo
• CEZ not to exit Romanian market, but also plans no takeovers