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Energy Projects
(2011-10-14)
Last updated: 2011-10-17 13:59 EET
Emil Boc si reprezentantii NIS, companie subsidiara a Gazprom Neft The government in Bucharest has made several decisions lately, which concern the energy industry in Romania and are intended to enhance the country's energy capacity.


The Russian giant Gazprom will enter the Romanian market through an oil division – the Serbian company NIS. Its officials presented prime minister Emil Boc with their plans to invest several hundreds of millions of Euros in Romania in the coming years, and to create some 500 jobs in the oil industry. Gazprom operates the world's largest natural gas pipeline network, with close to 160,000 km of pipelines, contributing 10% to Russia's GDP, while NIS extracts and processes 32 million tons of crude oil per year. This is not the only piece of good news: several projects have been announced in Bucharest these days, which are designed to strengthen the Romanian energy sector.


One of them is the signing of a memorandum of agreement between Romania and Bulgaria regarding the construction of a hydropower complex on the Danube, in parallel with the interconnection of the two countries' energy markets. Similarly, three concession agreements have been approved, for the exploration, development and exploitation of oil resources in the Romanian Black Sea sector. Each of the three areas spans some 1,000 square km, and the Dutch and Romanian companies that will carry out these operations in the next 20-30 years will invest around 140 million USD by 2014.


The Romanian power sector shall be reorganised, as the Government has decided to set up two new coal mining companies: the Hunedoara Power Complex (in the west), which will produce and supply electricity and heat from pit coal resources, and the Oltenia Power Complex (in the south) which will coordinate lignite companies. At present, Romania does not have electricity companies running on pit coal and lignite that are large enough to take part in regional and international projects benefiting the Romanian market.


However, authorities argue, this will change once the two power complexes have been set up. Still, Romanians will pay more for electricity starting in 2012, with costs most likely to increase by 2.5%. The rise will be the result of the governmental aid to renewable energy producers. The Romanian law supports renewable energy projects through the green certificate system, which enables investors to recover their investments. The aid scheme has already been approved by the European Commission and will be applied until 2021.
 
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