1. Primary Energy Efficiency Law

In August 2014, Law No. 121/2014 on Energy Efficiency ("Law") entered into force. The Law transposes the European Union regulations into national legislation set out under Directive 2012/27/EU regarding energy efficiency, amending the Directives 2009/125/EC and 2010/30/EU, and repeals Directives 2004/8/EC and 2006/32/EC.

The main purpose of the Law is to establish a coherent legislative framework for the development and application of a national energy efficiency policy, in order to achieve the national target for increasing energy efficiency.

Comparison

The Law transposes Directive 2012/27/EU on energy efficiency partially, including Article 1 Paragraph (3): "Romania is a democracy", Paragraph (5): "In Romania, the Constitution, its supremacy and the laws shall be mandatory", Article 148 Paragraph (2) of the Constitution: "Following accession, the provisions of the constituent treaties of the European Union and other mandatory community regulations have precedence over the provisions of the national laws with the provisions of the act of accession". Article 22 Paragraph (1) of Law No. 24/2000 (republished and updated) on legislative technique for drafting regulations states: "Legislative solutions envisaged by the new regulation must take into account EU regulations, ensuring compatibility with them."

The main programmes that have been implemented are the following:

National Energy Efficiency Action Plans

According to the provisions of Directive 2006/32/EC, in 2007, Romania drew up the First National Energy Efficiency Action Plan. Through this document, Romania pledged to reduce the final energy consumption for the period 2008-2016 to an average annual rate of one point five percent (1.5%), compared to the average in the period 2001-2005 (the directive set the average annual rate of one percent (1%)). The pledged quantitative targets represent 2,800 ktep for 2016 and 940 ktep for 2010.

In 2011, the Second National Energy Efficiency Action Plan was developed. The calculations made by means of the top-down indicators recommended by the European Commission led to the conclusion that in 2010 Romania’s final energy consumption savings amounted to 2.223 ktep of which 1.060 ktep was in industry, 782 ktep in the services sector and 281 ktep in the household sector. The total value of these savings is far greater than the intermediate target set for 2010, and is relatively close to the final target set for 2016. This evaluation should take into account the fact that they were registered during a period of recession. The highest values have been registered in industry and services, representing the sectors most seriously affected by the crisis, and the important transformations and restructurings that have taken place in response thereto.

Sectoral Operational Programmes

Financed by the European Union, Romania benefits from the Sectoral Operational Programme Increase in Energy Competitiveness Priority Axis 4: Improvement in Energy Efficiency and Security of Supply in the context of climate change, Regional Sectoral Operational Programme Priority Axis 1: Support for the sustainable development of towns, and Priority Axis 3: Social infrastructure improvement, and the Programme for the Increase of Energy Efficiency for Residential Blocks of Flats approved by the Emergency Government Decision 1661/2008.

The Ordinance sets out the work necessary for the thermal insulation of residential blocks of flats designed and built between 1950 and 1990. Financing, as well as the obligations and responsibilities of public administration authorities and of owners’ associations are set forth therein.

The execution of the works will be financed by the following:

-fifty percent (50%) from the State budget allocations, within the funds annually approved for this goal from the budget of the Ministry of Regional Development and Dwellings;

-thirty percent (30%) from the funds annually approved for this goal from the local and/or other sources legally established; and

-twenty percent (20%) from the repair funds of the owners’ associations and/or other sources legally established.

The Ordinance stipulates the obligations and responsibilities of all stakeholders involved in applying this ordinance, as well as the monitoring and control actions related thereto.

-Programme for the Renewal of the National Auto Fleet

Through this programme (rabla), individuals receive a scrapping premium of RON 3,800/vehicle (approximately EUR 900) for vehicles more than eight (8) years old that are brought to centres established for this purpose. The scrapping premium is given in the form of vouchers that can only be used for acquiring new cars. The programme is financed through the Environmental Fund.

-Financing mechanism for energy efficiency – Energy efficiency financing facility ("EEFF")

EEFF is structured as credit line based on grants established from EC and EBRD funds that is carried out through six Romanian banks and is designed for private companies. These companies have the following facilities:

-low-interest loan of up to EUR 2.5 million from one of the participant banks;

-free of charge technical consultancy from a specialised firm; and

-grant amounting to fifteen percent (15%) at the investment completion.

Comparison

Through the NEEAP, Romania pledged to achieve the one point five percent (1.5%) energy savings per year mandated by the EU Directive. Romania's programme for residential blocks of flats aims to address ways to achieve energy efficiency measures through alternative means besides primarily achieving efficiency through retail energy sales companies. Romania's sectoral operations programmes aim to address issues in the public sector in regard to energy efficiency. This is also a way to address the requirement to carry out energy efficient renovations in at least three percent (3%) of buildings. The programme for Renewal of the National Auto Fleet is Romania's way to empower energy consumers to better manage consumption. All of these measures are funded through Romanian banks, budget allocations, and private companies. This addresses the issue with acquiring funding for programmes and audits.

The criterion used to define those companies that are obliged to undergo an energy audit is total annual energy consumption. The threshold is 1,000 toe/year, applied as follows:

-an enterprise with energy consumption higher than 1,000 toe is obligated to carry out energy audits for one hundred percent (100%) of energy consumption every four (4) years;

-an enterprise with energy consumption less than 1,000 toe/year is obligated to carry out energy audits for a selected percentage of their energy consumption (the energy audit beneficiary chooses the percentage of energy consumption) every four (4) years;

-each site that has energy consumption above 1,000 toe is considered as an independent unit and must carry out an energy audit on one hundred percent (100%) of the energy consumption of that unit; and

-those enterprises that annually consume less than 1,000 toe must carry out energy audits on a percentage of energy consumption as chosen by the beneficiary.

SMEs and enterprises that implement a system of energy or environmental management, certified by an independent body in accordance with European or international relevant standards are exempted from this obligation.

Establishment of the Energy Efficiency Department

In accordance with the provisions of the Law, an Energy Efficiency Department ("EED") was established within the Romanian Energy Regulatory Authority ("ANRE") by Order of ANRE's President No. 95/2014, published in the Official Journal No. 737/2014.

ANRE is responsible for transposing the provisions of the Law into secondary legislation.

National Energy Efficiency Action Plan

The National Energy Efficiency Action Plan (2014-2020) ("NEEAP III") was approved by Governmental Decision No. 122/2015.

The established measures for energy efficiency apply to primary resources, production, distribution, supply, transmission, and final consumption of energy. The measures provided by NEEAP III represent the basis for establishing twelve national EE Programmes, grouped into five sectors.

Comparison

Romanian legislation has been put in place to define the scope of energy audits to ensure that all energy companies comply with the Energy Efficiency Obligation. Since the EU directive only stipulates that energy distributers achieve a one point five percent (1.5%) energy reduction every year, Romania has defined how large enterprises can achieve this goal through energy audits and a compulsion towards efficiency. Romania has embraced the goal to promote efficiency throughout all stages of the energy chain. Romania chose not to pursue the alternatives offered in favour of energy audits and accountability for Romanian energy producers.

ANRE Decision No. 2794/2014 – Regulation for Certification of Energy Managers, Energy Service Provider Companies, and for Authorising Industrial Energy Auditors

Accordingly to ANRE’s Decision No. 2794/2014, energy auditors authorised in another Member State of the European Union or the European Economic Area are recognised as an energy auditor authorised in Romania, if they demonstrate knowledge of Romanian legislation after undergoing an interview.

The applicants must submit the following documents to ANRE:

-a certified copy of the authorisation issued in a Member State of the European Union or the European Economic Area translated and legally certified;

-references to work carried out as an energy auditor in the past three (3) years; and

-a list of equipment owned by the applicant specific to the work required for energy audits.

Energy auditors from countries outside the European Union or the European Economic Area must attach

the documentation, including the documents mentioned above, and a certificate of equivalence/recognition of related university degrees, issued by the National Council for Recognition and Equivalence of Diplomas from Romania.

Decision ANRE No. 2123/2014 – Guide for Energy Audit

-includes the minimum criteria for energy audits according to the Energy Efficiency Directive 27/2012/CE; and

-transport companies, or those companies which have a fleet, have the obligation to carry out energy audits on the fleet regarding the fleet composition, the technical characteristics of the vehicles, the number of hours of operation of the vehicles for a reference period, specific indicators – in relation thereto – such as tonnes/km or persons/km, energy consumption and possibilities for reduction thereof, the maintenance programmes for the vehicles, route optimisations and the training of drivers.

Decision ANRE No. 8/DEE/12.02.2015 – Model for Developing the Programme for Increasing Energy Efficiency for Industrial Units

Decision ANRE No. 7/DEE/12.02.2015 – Model for Developing the Programme for Increasing Energy Efficiency of Establishments with a Population Exceeding 5000 Inhabitants

Accordingly to the provisions of the Law:

-Article 9 (12) applies to municipalities with more than 5,000 inhabitants and provides that it is obligatory to have:

-energy efficiency programmes.

-Article 9 (13) applies to municipalities with more than 20,000 inhabitants and provides that it is

obligatory to have

-energy efficiency programmes; and

-an energy manager.

Decision No. 13/DEE/2015 Regarding the Approval of the Syllabus of Specialised Courses in the Field of Energy Management and Development of Energy Audits

Decision No. 1765/2013 Regarding the Approval of the Format for the annual Total Energy Consumption Statement and the Analysis Questionnaire for the Energy

Consumer

Additional Information

The Energy Efficiency Information Point was established in the ANRE headquarters located in Bucharest at No. 4, Sos. Cotroceni. The initiative aims to help all energy consumers achieve a better understanding of energy efficiency matters, from legislation to those measures that help increase energy efficiency.

Comparison

The EU Directive provides for energy audits of large industry, but does not establish parameters for distinguishing between large enterprises and SMEs. Because of this, Romania has established legislation for certification of energy auditors, guides for energy audit and a distinction between sizes of enterprises.

Energy auditors are required to demonstrate knowledge of Romanian legislation and be authorised by Romania or another Member State of the European Union. Romania has adopted the minimum criteria for energy audits under the EU Energy Efficiency Directive. This includes specification of what fields of industry are required to be audited and what occurs during an audit. Romania chose to define size of industry by how many inhabitants are in the municipality in which the industry resides, instead of by number of employees, turnover, and balance sheet parameters.

There are several strategies approved by the government that explicitly deal with energy efficiency.

National Energy Efficiency Strategy approved by GD 163/2004

The objective of the strategy was by 2015 to reduce primary energy intensity by forty percent (40%) compared to 2003. However, there have not been records published after 2012 to indicate if this has occurred.

National Strategy on the Supply of Heat to Localities by Means of District Heating Systems approved by GD 882/2004

Based on an analysis of the existing situation, this document establishes the main areas for intervention, including thermal insulation for residential blocks of flats, and rehabilitation of heat transport and distribution networks.

The Energy Strategy of Romania in the Period 2007-2020 approved by GD 1069/2007

The general objective of this energy strategy is to "cover the present and future energy demand for the lowest price, in the conditions of a modern market economy and civilised standard of living, ensuring quality and security of supply and observing the principles of sustainable development".

In order to reduce energy consumption in the large energy consuming sectors and attain those targets proposed both by the National Energy Efficiency Strategy and the National Energy Efficiency Action Plan corresponding to the Directive 2006/32/EC, measures will be taken in the following directions:

-Industry

-information campaigns;

-energy audits and efficient energy management; and

-energy efficiency improvement by supporting financing from Community funds.

-Transport

-energy consumption reduction by passenger and cargo railway transport modernisation;

-increase the quality of public transportation so that people will use it more frequently than private cars;

-expansion of public transport with new routes;

-increase traffic and parking efficiency;

-providing means of public transportation to employees by employers;

-increase development of rail transport within urban transport (e.g. trams, trolleybuses);

-increase energy efficiency of vehicles by establishing minimum efficiency criteria;

-introduction of standards to support the most efficient and least polluting vehicles; and

-use of gaseous and bio-fuels in the transport sector.

In order to implement these measures, the population needs to be educated. Romania's citizens need to understand the energy efficiency plan in order to achieve success on a larger scale.

-Residential (final energy consumption in buildings: heating, hot water and lighting): Specifically rehabilitation of the building envelope through thermal rehabilitation measures and financial support for low-income owners. This is achieved through the following:

-increasing the efficiency of the existing thermal installations;

-increasing the efficiency of lighting, and utilisation of low consumption lamps;

-obligation to apply the provisions of Directive 2012/27/EU and the European standards on new buildings;

-increasing energy efficiency by supporting financing from Community funds;

-continuing final consumer thermal energy metering;

-development of the national energy saving education programme for the population, in schools and through mass-media, aimed at saving energy, protecting the environment, and encouraging locally used renewable energy sources; and

-stimulation of functioning of energy service company (ESCO).

-Public sector

-increased efficiency and reduction in public lighting consumption;

-increased efficiency and reduction in water supply installation consumption; and

-increased efficiency in public buildings.

-Agriculture

-increase efficiency and use of bio-fuels;

-development of energy crops, both for producing bio-fuels, electricity, and heat through cogeneration; and

-increase energy efficiency

-Cogeneration

-promotion of highly efficient cogeneration;

-identification of the national cogeneration potential;

-energy auditing of cogeneration units; and

-rehabilitation and modernisation of the existing installations for increasing efficiency and reducing environmental impact.

-Renewable energy sources

-increase in the degree of RES utilisation under high economic efficiency conditions for producing electricity and heat. This is accomplished through access to the electrical network in the investment phase;

-green certificate improvement with a view to attract private capital in the RES field of investment;

-promotion of mechanisms for supporting utilisation of RES that produce heat and hot water for domestic use; and

-utilisation of structural funds.

-Bio-fuel utilisation

By 2020, the percentage of bio-fuel utilisation will amount to at least ten percent (10%), through the use of new generations of bio-fuels.

National Strategy for Romania’s Sustainable Development 2013-2020-2030 approved by GD 1460/2008

The strategy establishes that the efficient utilisation of energy and promotion of RES are essential for ensuring sustainable development in the long-term.

Comparison

Due to the lack of specificity within the EU Directive, Romania has chosen to address several sectors in order to develop a strategy to achieve energy efficiency targets. Directive 2012/27/EU calls for long-term renovation strategies, specifically in the public sector.

Romania addresses the need for audits in industry, the need for a major overhaul in the transportation sector, new residential standards, increased efficiency in the public sector, focus on biofuels in agriculture, and the heavy utilisation of renewable energy sources.

As a Member State of the European Union, Romania must transpose the EU Directives into its internal legislation and observe the energy policy measures established by the European Commission.

GD 1043/2007 on the eco-design requirements for energy-consuming products

The decision transposes Directive 2005/32/EC, which sets a framework establishing the eco-design requirements that apply to energy-consuming products.

Law 220/2008 on the establishment of a system for the promotion of energy production from RES with its subsequent modifications and completions

In its present form, the law transposes the provisions of Directive 2009/28/EC into Romanian legislation.

EGO 152/2005 on the prevention and integrated control of pollution with its subsequent modifications and completions

In its present form, the Ordinance transposes Directive 2008/1/EC into Romanian legislation.

EGO 40/2011 on the promotion of the non-polluting and energy efficient road transport

The Ordinance transposes Directive 2009/33/EC into Romanian legislation.

Several Government decisions on the establishment of the requirements relating to labelling, energy efficiency and the introduction of receivers in the market (refrigerating equipment, air conditioners for household utilisation, electric ovens, dryers, washing machines, dish washers, electric lamps, ballast for fluorescent lighting devices, etc.).

In order to implement the strategies and adopted legislation towards national energy efficiency, programmes have been initiated and financed through European funds, State budget or other centralised funds.

Comparison

The EU Directive establishes an indicative target of  at least twenty percent (20%) energy efficiency for Member States. Romania has established an ambitious forty percent (40%) energy efficiency target; however there is little information indicating if this target is actually going to be reached. They have established many strategies and implemented legislation towards the effort of achieving these targets.

2. Specific Provisions of the Law

3. Obligations

4. Mandatory Audit of Large Industry

5. Strategies

6. Targets

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