In August 2014, Law No. 121/2014 on Energy Efficiency ("Law") entered into force. The Law transposesthe European Union regulations into national legislation set out under Directive 2012/27/EU regardingenergy efficiency, amending the Directives 2009/125/EC and 2010/30/EU, and repeals Directives2004/8/EC and 2006/32/EC.
The main purpose of the Law is to establish a coherent legislative framework for the development andapplication of a national energy efficiency policy, in order to achieve the national target for increasingenergy efficiency.
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 shallbe mandatory", Article 148 Paragraph (2) of the Constitution: "Following accession, the provisions of theconstituent treaties of the European Union and other mandatory community regulations have precedenceover 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, ensuringcompatibility 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 EnergyEfficiency Action Plan. Through this document, Romania pledged to reduce the final energy consumptionfor the period 2008-2016 to an average annual rate of one point five percent (1.5%), compared to theaverage in the period 2001-2005 (the directive set the average annual rate of one percent (1%)). Thepledged 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 bymeans of the top-down indicators recommended by the European Commission led to the conclusion thatin 2010 Romania’s final energy consumption savings amounted to 2.223 ktep of which 1.060 ktep was inindustry, 782 ktep in the services sector and 281 ktep in the household sector. The total value of thesesavings is far greater than the intermediate target set for 2010, and is relatively close to the final target setfor 2016. This evaluation should take into account the fact that they were registered during a period ofrecession. The highest values have been registered in industry and services, representing the sectorsmost seriously affected by the crisis, and the important transformations and restructurings that have takenplace in response thereto.
Sectoral Operational Programmes
Financed by the European Union, Romania benefits from the Sectoral Operational Programme Increase inEnergy Competitiveness Priority Axis 4: Improvement in Energy Efficiency and Security of Supply in thecontext of climate change, Regional Sectoral Operational Programme Priority Axis 1: Support for thesustainable development of towns, and Priority Axis 3: Social infrastructure improvement, and theProgramme for the Increase of Energy Efficiency for Residential Blocks of Flats approved by theEmergency Government Decision 1661/2008.
The Ordinance sets out the work necessary for the thermal insulation of residential blocks of flats designedand built between 1950 and 1990. Financing, as well as the obligations and responsibilities of publicadministration 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 goalfrom 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 sourceslegally established; and
-twenty percent (20%) from the repair funds of the owners’ associations and/or other sources legallyestablished.
The Ordinance stipulates the obligations and responsibilities of all stakeholders involved in applying thisordinance, 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 centresestablished for this purpose. The scrapping premium is given in the form of vouchers that can only beused 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 carriedout through six Romanian banks and is designed for private companies. These companies have thefollowing 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.
Through the NEEAP, Romania pledged to achieve the one point five percent (1.5%) energy savings peryear mandated by the EU Directive. Romania's programme for residential blocks of flats aims to addressways to achieve energy efficiency measures through alternative means besides primarily achievingefficiency through retail energy sales companies. Romania's sectoral operations programmes aim toaddress issues in the public sector in regard to energy efficiency. This is also a way to address therequirement to carry out energy efficient renovations in at least three percent (3%) of buildings. Theprogramme for Renewal of the National Auto Fleet is Romania's way to empower energy consumers tobetter manage consumption. All of these measures are funded through Romanian banks, budgetallocations, and private companies. This addresses the issue with acquiring funding for programmes andaudits.
The criterion used to define those companies that are obliged to undergo an energy audit is total annualenergy 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 forone 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 auditsfor a selected percentage of their energy consumption (the energy audit beneficiary chooses thepercentage of energy consumption) every four (4) years;
-each site that has energy consumption above 1,000 toe is considered as an independent unit and mustcarry 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 apercentage of energy consumption as chosen by the beneficiary.
SMEs and enterprises that implement a system of energy or environmental management, certified by anindependent body in accordance with European or international relevant standards are exempted from thisobligation.
Establishment of the Energy Efficiency Department
In accordance with the provisions of the Law, an Energy Efficiency Department ("EED") was establishedwithin 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 GovernmentalDecision 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 thebasis for establishing twelve national EE Programmes, grouped into five sectors.
Romanian legislation has been put in place to define the scope of energy audits to ensure that all energycompanies comply with the Energy Efficiency Obligation. Since the EU directive only stipulates that energydistributers achieve a one point five percent (1.5%) energy reduction every year, Romania has definedhow 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. Romaniachose not to pursue the alternatives offered in favour of energy audits and accountability for Romanianenergy 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 ofthe European Union or the European Economic Area are recognised as an energy auditor authorised inRomania, 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 EuropeanEconomic 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/recognitionof related university degrees, issued by the National Council for Recognition and Equivalence of Diplomasfrom Romania.
Decision ANRE No. 2123/2014 – Guide for Energy Audit
-includes the minimum criteria for energy audits according to the Energy Efficiency Directive27/2012/CE; and
-transport companies, or those companies which have a fleet, have the obligation to carry out energyaudits on the fleet regarding the fleet composition, the technical characteristics of the vehicles, thenumber of hours of operation of the vehicles for a reference period, specific indicators – in relationthereto – 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 forIncreasing Energy Efficiency for Industrial Units
Decision ANRE No. 7/DEE/12.02.2015 – Model for Developing the Programme forIncreasing Energy Efficiency of Establishments with a Population Exceeding 5000Inhabitants
Accordingly to the provisions of the Law:
-Article 9 (12) applies to municipalities with more than 5,000 inhabitants and provides that it is obligatoryto 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 SpecialisedCourses in the Field of Energy Management and Development of Energy Audits
Decision No. 1765/2013 Regarding the Approval of the Format for the annual TotalEnergy Consumption Statement and the Analysis Questionnaire for the Energy
The Energy Efficiency Information Point was established in the ANRE headquarters located in Bucharestat No. 4, Sos. Cotroceni. The initiative aims to help all energy consumers achieve a better understandingof energy efficiency matters, from legislation to those measures that help increase energy efficiency.
The EU Directive provides for energy audits of large industry, but does not establish parameters fordistinguishing between large enterprises and SMEs. Because of this, Romania has established legislationfor 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 byRomania or another Member State of the European Union. Romania has adopted the minimum criteria forenergy audits under the EU Energy Efficiency Directive. This includes specification of what fields ofindustry are required to be audited and what occurs during an audit. Romania chose to define size ofindustry by how many inhabitants are in the municipality in which the industry resides, instead of bynumber 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 hasoccurred.
National Strategy on the Supply of Heat to Localities by Means of District HeatingSystems 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 anddistribution 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 thelowest price, in the conditions of a modern market economy and civilised standard of living, ensuringquality 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 targetsproposed both by the National Energy Efficiency Strategy and the National Energy Efficiency Action Plancorresponding to the Directive 2006/32/EC, measures will be taken in the following directions:
-energy audits and efficient energy management; and
-energy efficiency improvement by supporting financing from Community funds.
-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 privatecars;
-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 tounderstand the energy efficiency plan in order to achieve success on a larger scale.
-Residential (final energy consumption in buildings: heating, hot water and lighting): Specificallyrehabilitation of the building envelope through thermal rehabilitation measures and financial support forlow-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 newbuildings;
-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 andthrough mass-media, aimed at saving energy, protecting the environment, and encouraging locallyused renewable energy sources; and
-stimulation of functioning of energy service company (ESCO).
-increased efficiency and reduction in public lighting consumption;
-increased efficiency and reduction in water supply installation consumption; and
-increased efficiency in public buildings.
-increase efficiency and use of bio-fuels;
-development of energy crops, both for producing bio-fuels, electricity, and heat throughcogeneration; and
-increase energy efficiency
-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 reducingenvironmental impact.
-Renewable energy sources
-increase in the degree of RES utilisation under high economic efficiency conditions for producingelectricity and heat. This is accomplished through access to the electrical network in the investmentphase;
-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 fordomestic use; and
-utilisation of structural funds.
By 2020, the percentage of bio-fuel utilisation will amount to at least ten percent (10%), through the use ofnew generations of bio-fuels.
National Strategy for Romania’s Sustainable Development 2013-2020-2030 approvedby GD 1460/2008
The strategy establishes that the efficient utilisation of energy and promotion of RES are essential forensuring sustainable development in the long-term.
Due to the lack of specificity within the EU Directive, Romania has chosen to address several sectors inorder to develop a strategy to achieve energy efficiency targets. Directive 2012/27/EU calls for long-termrenovation strategies, specifically in the public sector.
Romania addresses the need for audits in industry, the need for a major overhaul in the transportationsector, 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 internallegislation 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-designrequirements that apply to energy-consuming products.
Law 220/2008 on the establishment of a system for the promotion of energyproduction 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 itssubsequent 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 roadtransport
The Ordinance transposes Directive 2009/33/EC into Romanian legislation.
Several Government decisions on the establishment of the requirements relating to labelling, energyefficiency and the introduction of receivers in the market (refrigerating equipment, air conditioners forhousehold utilisation, electric ovens, dryers, washing machines, dish washers, electric lamps, ballastfor 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 othercentralised funds.
The EU Directive establishes an indicative target of at least twenty percent (20%) energy efficiency forMember 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 haveestablished many strategies and implemented legislation towards the effort of achieving these targets.