15.02.2017
EU’s energy security. Romania’s participation in the
Energy Union
(EIR Conference Hall)
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EVENT REPORT -
On February 15th, 2017 the European Institute of Romania (IER) organized a debate
on the subject "EU’s energy security. Romania’s participation in the Energy Union".
The event was scheduled on the occasion of presenting the results of the research carried
out in the study “The energy diplomacy of the European Union and the potential of
developing new infrastructure projects. Romania`s participation in the Energy
Union”, authored by Mr. Sorin Ioniță (coord.), Mrs. Ana Otilia Nuțu and Mrs.
Valentina Ivan. The debate was moderated by Mrs. Gabriela Drăgan, Director General
of the European Institute of Romania.
In the opening session, Mrs. Drăgan outlined that the purpose of this meeting is
closely related to the series of strategy and policy studies (SPOS) that is being edited by IER
since 2006. The SPOS series have constantly aimed at being more than academic studies,
given that they are scientific papers drafted together with the participation of the
beneficiary institutions, and the topics are selected with an input from direct partners,
primarily from the Ministry of Foreign Affairs.
The team of authors went on presenting the study, and mentioning that the
importance of the energy sector overpasses the technical issues surrounding it. Thus, Mrs.
Valentina Ivan said the study may contribute to a better understanding of the way in
which the EU is acting in the field of energy, and the way Member States can have a
common voice and can launch cross-border cooperation projects. Regarding the energy
diplomacy approaches that can be used at the level of the European Union, the researcher
presented two of them: more Europe (liberalization) or less Europe (anti-liberalization). In
this sense, the dynamics of dependency on imports suggests the existence of the red,
purple and green countries, that is, countries that are largely dependent on Russia meaning the energy islands; countries with several suppliers and green countries (such as
the United Kingdom which has a liberalized market, strong legislation and liquid transit
markets). For the Romanian case, is extremely important that the state, throughout
different diplomatic efforts, strengthens its regional leading position on the energy market.
For achieving this goal, it is necessary to interconnect and liberalize the market.
Nonetheless, the way ahead (in the energy sector) for Romania is that of the EU, meaning
also that most of the national competences should be delegated to the European level.
Mrs. Ana Otilia Nuțu carried on presenting the study, stating that after 2008 we
could notice a sort of rebound effect in terms of acquiring the European energy model.
Incidentally, there are two political and economic models that are constantly in question:
EU/Western liberal model (based on free competition, democracy; limiting monopolies,
opening markets, breaking the “State Champions”, liberalization, privatization) and antiliberal model (non-consolidated democracy with undermining institutions, monopoly,
controls on lobbyists, non-transparency, abuse of a dominant position, “zero-sum” game). A
case of good practice described by the author was focused on the LNG Terminal Klaipeda
from Lithuania, which became operational as from 2014. Until that moment, Lithuania,
Latvia, Estonia and Finland were relying 100% on the Russian gas, and currently the
terminal can import an equivalent of 75% of the consumption rate of the Baltic States. What
happened in Lithuania may represent a success example for Romania, especially because
from 2012 the things have begun to change, and the liberalization bottlenecks were
removed.
At the end of the study presentation, the research team coordinator, Mr. Sorin
Ioniță stressed on the finding that the Europeanisation of the energy sector has created an
advantage for Romania, and that externally we have the potential of becoming a regional
anchor of good governance. Internally, the energy sector represents a source of income, its
limits being the stability and the legislative framework rightness. Nevertheless, the
advantage that Romania has for holding the Presidency of the Council of the European
Union, in 2019, can be an incentive for the energy reform and for introducing the 3rd Energy
Package on the agenda.
The Interventions section was opened by Mrs. Ana Birchall, Minister-delegate for
European Affairs, who outlined the quality of the study, expressing also her support for
sending the research paper in the Cabinet of Ministers in order to be harmonized with the
positions expressed in Brussels. She also pointed that the energy sector is part of the ministrategy draft compelled for the preparation of the Romanian Presidency of the Council of
the European Union, and that Romania can and should be, for this purpose, a voice at
regional and European level. Mrs. Birchall further on added that for Romania it is important
to establish the Energy Union within the limits and within the powers specified in the
European treaties provisions. It is being also highly relevant to respect the flexibility among
the Member States to choose policies that are best-matched to their national energy mix
and preferences, their right to technological neutrality and the fundamental right of access
to electricity for all EU members at stable, accessible and competitive prices. Last but not
least, the Minister-delegate has favoured the idea of more Europe, underpinned by the team
of researchers.
On behalf of the Ministry of Energy, Mrs. Corina Popescu, Secretary of State,
commenced by addressing the favourable timing of the study in the context of launching
the “Winter Energy Package”. Romania being placed at the border of the EU in terms of
energy, it is very important to know what kind of position we should hold as a country and
how to manage risks and vulnerabilities. Mrs. Popescu consequently declared that the entire
Winter Package is focused on regionalization, regional market (including networks),
reflecting discussions about a regionalization of the regulatory framework. In this context, it
is to be taken into account that 12% of the energy produced in Romania (this winter) has
provided the needed stability for the neighbouring countries.
Mr. Ambassador Mihnea Constantinescu, Coordinator with special tasks for energy
security in the Ministry of Foreign Affairs, has subsequently presented the particularities of
energy diplomacy, reiterating the strategic objectives in this sector. Mr. Constantinescu
presented as an essential aspect that the energy diplomacy depends on the credibility of the
energy sector, which is based on 3 pillars: a professional capacity of the institutions; the
stability and predictability of the legal framework governing Romania (in this sector and in
the related sectors); clarity of the objectives - the need to finalize the national energy
strategy in close relation to the objectives of the EU. As regards to the suggestions of
improvement addressed to the authors, Mr. Constantinescu has brought into scrutiny the
business component, which actively contributes to the support and the sustainability of the
macro regional and European visions in the energy sector.
Adding to this, Mr. Niculae Havrileţ, President of the National Regulatory Authority
in the field of Energy (ANRE) said that over the past four years ANRE has gained a new
position within the state apparatus that manages the energy sector, and this gave him the
opportunity to be extremely involved in the liberalization program, considered to be a
difficult one. Mr. Havrileț acknowledged that ANRE is presented as having a positive
contribution to the field of energy liberalization, in the SPOS study, considering that this
research ”is necessary to decision makers in the energy sector”, given that the public
debate disclosed an equivocal perception over the state’s interests in the process of
liberalization, as is often considered to be imposed by EU, but is actually an act of mature
thinking and rational management of the opportunities that Romania has.
The following intervention from the panel belonged to Mrs. Eugenia Gușilov,
Director of the Romanian Center for Energy (ROEC), who communicated a few
acknowledgments to the study and the relevance of the chosen subject. Among the
strengths listed in the study, the following were especially mentioned: the energy
stakeholders mapping, the case studies, and the emphasis placed on the structure of the
energy sector (especially the gas sector). Mrs. Gușilov stressed the importance of solidarity
at the European level and appreciated the fact that the authors have not been afraid to be
critical, insisting on showing courage and political will.
Subsequently, Mr. Ionut Purică, energy expert and senior scientific researcher within
the Romanian Academy, presented his opinion on the study, as a member of the Advisory
Group for Energy of the European Commission. Among the suggestions addressed to the
authors was that instead of the study section concerning what Romania needs to do, it
should be specified which are the strategies adopted by the Ministry of Energy strategies,
already in place. In the energy and security strategy it is mandatory to define and
distinguish clearly between the context of state aid and the costs for energy security, this
study being a very good starting point in this direction.
Last but not least, the intervention of Mrs. Antonia Colibăşanu, geopolitical analyst,
director of strategic relations for Geopolitical Futures, was focused on the constraints and
limitations in the political, economic and technological areas with regards to the objectives
that Romania and the European Union have in the field of energy security. At the same
time, she considered as favorable the inclusion of the energy infrastructure in the critical
area because it is closely related to the technological progress which will push us towards
certain dependencies of energy resources in the future. Mrs. Colibășanu ended her speech
by saying that Romania has a core of human resources capable of generating technological
progress, but we still have to take into consideration the existing capabilities and limitations,
and the design synergies with strategic partners.
as:
In the Questions and Answers section, several issues were brought into question, such
• the ending of the mandates for the members of the Regulatory Committee of ANRE,
and the uncertainties over the future membership structure of ANRE;
• recent election-related controversy within the Republic of Moldova ANRE, where the
former deputy minister of economy has been elected as director;
 the energy strategy and the arguments brought in favour of the construction of 3
and 4 Cernavodă reactors [there are some problems with the assumptions used and it is to
be seen to what extent the market prices (for electricity) will make this investment effective
since for the post 2020 period the European Commission oversees a decrease in prices on
the long term, and at the national level it is said that the prices will continue to grow];
• the trend of existing overregulation in all related institutions of the energy sector;
• state aid schemes in the energy sector: how useful and/or necessary is the state aid
in this context;
• the European Digital Agenda and the urban architecture (integrated approach of the
systems that are essential for the good functioning of a city): the development of "Smart
Grid" projects;
• Romania`s involvement in supporting the development of energy infrastructure in
the Republic of Moldova.
Event Report by Ioana Chiș and Silvia Popoiu,
Studies and Analyses Unit interns