Over the past three weeks, tens of villages, mainly in southeastern Romania, but also in cities and in Bucharest, have seen some serious power outages. The explanation most often issued by electricity distributors referred to the bad weather, namely heavy snowfalls and the blizzard, which caused electricity consumption to soar.
During the winter, electricity consumption grows, because people use electrical heating devices and more electricity is consumed for lighting.
Representatives of state-owned power grid operator Transelectrica (TEL.RO) said that between 2001 and 2008 electricity consumption grew at a steady pace in Romania, with a decline in 2009, affected by the world economic crisis. In 2011, electricity consumption neared the one seen in 2008.
Between 2001 and 2011, electricity consumption increased by 14.3%, according to Transelectrica data.
Sources in the energy market said the power grid would not be hit so hard by the bad weather if installations were upgraded and adapted to current demand.
“The network is old and it greatly needs investment. The national power grid, operated by Transelectrica, is looking better. However, there is no risk for the national transport system to fall,” the sources said.
In Bucharest, electricity supply security would be increased through the construction of a transport line, a project that has been in talks for more than three years, which would close the distribution ring. The closure of the distribution ring would secure Bucharest’s supply even in situations where surrounding networks fall. People close to the matter said the project is in the feasibility study phase.
At the same time, the expansion of the electrical lines could not keep up with the development of the housing segment. Thus, in some areas, distributors failed to construct new networks in time, and existing lines are overwhelmed.
The precarious state of the distribution networks is also acknowledged by authorities. As such, Romania’s energy strategy, developed by the Economy Ministry, notes that some 65% of the electrical distribution networks have a high degree of usage, and 30% of the installations are obsolete.
Some 70% of nationwide distribution is controlled by foreign companies. Five of the eight electricity distribution companies have been privatized in 2005-2008, bought by Czech CEZ, German E.ON and Italy’s Enel.
According to Enel Romania, the distribution network in Bucharest has a “considerable” age, with the large part of the infrastructure constructed with ’60s and ’70s technology.
Representatives of Enel Romania added there were no investments made in the electrical lines before privatization, and the network “cannot handle current consumption demands”.
Enel Muntenia Sud supplies Bucharest and the counties Ilfov and Giurgiu, after taking over the distribution network in 2008.
Enel completed in November 2011 the construction of a command center, with an investment of EUR90 million, to control network stations and components online, as well as to increase the quality of delivery.
In March 2011, the Italian group announced it would invest EUR800 million over a five-year period, in its three areas of operation in Romania, namely Dobrogea, Banat and Muntenia. Investment will target service quality and network security.
German E.ON is present on the Romanian electricity supply market since 2005. Between 2005 and 2010, the company has invested over EUR140 million in the network, especially in transformer upgrades.
CEZ Romania covers the counties Arges, Dolj, Gorj, Oltenia, Mehedinti, Teleorman and Valcea.
The company’s chief executive officer, Jan Veskrna, said last year that the Czech group plans to invest EUR65 million per year on the distribution segment in Romania.