Romania’s residential buildings consume up to 8 times more energy than average, compared to EU-15 countries (the first 15 countries that have joined the European Union), due to an inefficient heating system and a lack of proper insulation. This is the conclusion of the “European Semester Report”, which includes recommendations issued by the European Commission for every EU member state.
According to this report, Romania is the third most energy-intensive economy in the Union, with an energy consumption intensity two and a half times greater than the EU average. Our country’s economy also ranks third when it comes to carbon emission levels among EU states. The document highlights the fact that the integration of the EU’s electricity and natural gas markets is not yet complete due to the fact that the necessary inter-connections between the natural gas transport networks of its member states have not been finalized.
This analysis confirms that in the areas of transportation and energy generation – traditionally considered to be the main sources of carbon emissions – Romania still suffers from a lack of competition and efficiency. The same study states that “The lack of efficiency and low levels of governmental transparency in managing state-owned enterprises involved in energy-intensive sectors represent a major challenge”.
“What Romania’s successive governments over the past 10 years have failed to grasp is precisely the fact that the economic power of a country is not measured by its energy consumption. On the contrary, it is because we have such a significant potential for energy efficiency that we should prioritize efficiency in our national energy policies, rather than adopt controversial technologies, such as hydraulic fracturing, in order to attain our much vaunted goal of energy independence”, says Ioana Ciută, head of the Terra Mileniului III Foundation.
Recommendations for Romania:
One of the recommendations received by Romania from the European Commission is the promotion of competition and efficiency in network industries, by guaranteeing independence and freedom of action for national regulating bodies. Furthermore, the Commission encouraged the continuation of reforms in the area of corporate governance for state-owned companies in the energy and transportation sectors.
Fulfilling the goal of reducing losses and increasing competitiveness means that Romania has to adopt a comprehensive and long-term plan in the transportation sector, while at the same time deregulating gas and electricity prices and improving energy efficiency. Additionally, Romania must improve cross-border integration of energy networks and accelerate the implementation of projects for finalizing the interconnection of gas networks.
About the European Semester
The European Semester is a preventive surveillance instrument for the economic and fiscal policies of EU member states, which allows the European Commission (EC) to evaluate these policies before they adoption by the states.
The term “semester” comes from the six month period during which the budgetary and structural policies of member states are analyzed, with the aim of identifying present or imminent imbalances that would breach the rules of the Stability and Growth Pact (SGP). Thus, by means of this European Semester, each EU member state can prepare budgetary decisions and, at the same time, a certain degree of coordination between states can be achieved, thereby providing stability and growth for the European economy, as a whole.
Source: Terra Mileniului III press release
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Article written by Magda Baidan and translated by Mihail Mitoseriu.