Romania Wind Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Romanian wind energy market is expected to register a CAGR of more than 2% during the forecast period of 2022-2027. The country's renewable energy sector was severely affected by the COVID-9 pandemic in terms of supply chain disruptions and project delays. Since the country already reached its 2020 target for renewables, new investments were expected to decrease till 2021. Although Romanian’s wind potential is the highest in Southeast Europe, with the Dobrogea region being the second-highest wind potential area on the continent, the market is expected to witness significant demographic and economic growth, leading to an increase in energy demand. Factors such as increasing demand for renewable energy, rising investments in wind farms, efforts to reduce the reliance on fossil fuel-based power generation, government policies, and declining wind energy costs are expected to drive the wind energy market in the country. However, the increasing adoption of alternate clean power sources, such as solar, and the availability of fossil fuels are likely to restrain the growth of the wind energy market during the forecast period.

Key Highlights

• The country's wind energy sector was dominated by onshore wind farms, while offshore projects are still in the planning stages. This indicates that the onshore segment is expected to continue its dominance during the forecast period.
• The Romanian Ministry of Energy announced plans to enforce new offshore wind energy laws and help investors develop offshore wind energy. This is expected to create significant opportunities for the market soon.
• The increasing adoption of other alternative clean energy sources, like solar and bioenergy, is likely to restrain wind energy growth during the forecast period.

Key Market Trends

Onshore Wind Energy to Dominate the Market

• As of 2020, Romania's total wind energy installed capacity was from onshore wind farms. Wind energy production has been growing in Romania over the past decade. Romania's wind energy sector is the second-largest renewable energy source after hydropower.
• Wind energy generated about 12% of Romania’s electricity in 2020. As of 2020, the installed capacity of onshore wind energy in Romania was 3,029 MW. The wind and other renewables’ share in Romania’s electricity generation mix is expected to rise by 35% by 2030.
• In 2020, Romanian power company Hidroelectrica announced plans to build 600 MW of wind power capacity by 2026, including a 300 MW onshore and 300 MW offshore wind farm that would be the first-ever to be built in the Black Sea.
• According to WindEurope, wind energy in Romania is expected to add 1.4 GW of new installations and investments are estimated to be over EUR 2 billion for the next five years.
• Although the wind energy installed capacity has remained constant for the past few years, upcoming wind energy projects and plans to increase the renewable energy share in the country's power generation mix are expected to drive the market during the forecast period.

Increasing Adoption of Alternative Energy Sources Restraining Market Growth

• Romania's renewable energy mix is dominated by wind and hydropower power. But this scenario has begun changing fast with the growth of solar energy and bioenergy.
• Both solar energy and bioenergy have grown significantly in Romania in recent years. The country’s solar potential is enormous, and it benefits from about 210 sunny days per year.
• The southeastern region, the west, the center, and the east of Romania are the best places to install a solar park. Solar energy capacity in the country increased from 1 MW in 2009 to 1387 MW in 2020, while bioenergy capacity grew from 16 MW in 2009 to 139 MW in 2020.
• Solar energy has witnessed substantial growth in Romania in recent years, mainly driven by decreasing prices of solar panels, favorable government policies, and their capability to be installed in small-scale for households and commercial centers.
• Furthermore, in 2021, Core Value Capital announced plans to invest over EUR 800 million into new photovoltaic parks in Romania over the next seven years. The new parks are expected to have a total capacity of 1 GW.
• The solar power sector in the country has been growing faster than the wind power sector during the last decade and is expected to restrain the market studied during the forecast period.

Competitive Landscape

The Romanian wind energy market is moderately consolidated. The key players in the market include CEZ Romania, Enel Green Power SpA, Verbund AG, Siemens Gamesa Renewable Energy SA, and EDP - Energias de Portugal.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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