“(Romanian public heating) needs EUR5 billion worth of investments in the next 10 years (…) In the current system, which is controlled mostly by local authorities, the annual amount of investments is of only EUR30 million,” said the report called “Challenges and Opportunities for the Romanian district heating system”.
The only viable way to perform such investments, PwC added in the news release, is through increased private involvement in the field and public-private partnerships.
“The Romanian district heating system is highly inefficient and relies heavily on state subsidies in order to provide thermal energy at an affordable price for the population,” said Bogdan Belciu, partner, advisory services within PwC Romania, one of the authors of the report.
The report also reveals that some 30% of thermal power produced in Romania is lost in the system, before it reaches the end-user. This, in turn, causes a 20% increase in the heating bills.