Market sources say that whilst the export increase largely came amid a favorable regional context, it also proves domestic producers have understood they must tap foreign markets if they want to survive. Moreover, there’s enough room as the entire region is characterized by a lack of investments in new production units.
According to ANRE data, in the first six months of this year energy consumption stood at 24.16 TWh, and Transelectrica shows that production reached 29.4 TWh. Virtually, 10% of the entire domestic output went abroad.
“Beside the favorable regional context, there is also rising interest from the part of electricity generators in external markets, but in our opinion the steps are still shy. However, Romania’s electricity suppliers have special abilities in sealing export contracts, which has spurred electricity exports from Romania in recent years,” says Marius Untescu, head of the general energy and environment office of the Energy Department.
For instance, while it cannot export energy directly, with CE Oltenia being forced, just like the other state-run producers, to sell the entire electricity on OPCOM energy bourse, the company “tailored” certain packages destined to the traders that wanted to send energy abroad to profit from the better prices of Hungary or demand from Serbia.
“Domestic consumption is low. This is the reality, and we have large production capacities. There are not many solutions. You either shut down, or export as much as you can,” said Razvan Purdila, member of CE Oltenia supervisory board.
According to OPCOM data, in 1H the average price on the spot market stood at EUR32.2/MWh, close to the level of 1H, 2-13. On the bilateral contract platform, though, the price reached EUR37.7, almost 14% lower against the same period of last year.
“The export level was brought by the context, indeed, but it’s still good news. This is a first sign showing us that if the price is good, opportunities emerge,” says Adrian Borotea, a director at CEZ Romania.
The main export destination for Romanian energy was Bulgaria, followed by Serbia and Hungary.
Energy exports are expected to more than triple in 2014 against last year.
However, Energy Department officials say the state has few levers to support electricity exports, but boosting domestic consumption is a priority.
(English version by Catalina Apostoiu)