BUCHAREST, September 27, 2024-The European Commission and the World Bank Group supported the Government of Romania to publish a new roadmap today to help realize the vast potential of offshore wind in Romania.
The roadmap was produced as part of the project 'Internal energy market and energy transition in Romania' which received technical support from the European Commission's Directorate General for Structural Reform Support (DG REFORM). The project was funded by the European Union via the Technical Support Instrument and was implemented by the World Bank and International Finance Corporation (IFC), with the support of DG REFORM and in collaboration with the Government of Romania.
The Offshore Wind Roadmap for Romania provides strategic analysis and outlines a realistic vision for the development of a successful offshore wind industry. Backed by a good wind resource, well-equipped port facilities, proven steel-based supply chain and skilled local workforce, offshore wind power offers Romania a large-scale domestic source of clean energy. The emerging industry also presents new opportunities for long-term jobs and holds potential to bolster economic growth across a prospective Black Sea regional market for renewables.
The roadmap highlights the potential for up to 7 GW of offshore wind capacity to be installed within Romania's Exclusive Economic Zone in the Black Sea. It explores the impact of two different offshore wind growth scenarios located at least 50 km from shore and situated predominantly in shallow waters suitable for fixed-bottom foundations. The scenarios chart two realistic paths for Romania to meet its future electricity needs:
- Low growth: which assumes 3 GW of offshore wind power is installed to supply 16% of Romania's electricity needs (by TWh) by the end of 2035. In this scenario, it is estimated that supply chain activities would create €1.4 billion [$1.5bn] gross value added to the local economy in this period.
- High growth: which assumes 7 GW of offshore wind power is installed to supply 37% of Romania's electricity needs by the end of 2035. In this scenario, it is estimated that supply chain activities would create €5.3 billion [$5.9bn] gross value added to the local economy in this period, 3.7 times as much as in the low growth scenario.
To achieve these scenarios, the roadmap highlights priority themes and recommended actions for the Government of Romania to consider. This includes further clarity on energy strategy with targets for offshore wind deployment up to 2035; the establishment of development zones in the most suitable locations; viable frameworks for licensing, leasing, permitting and offtake; significant upgrades of the transmission network; and support to key areas of Romania's supply chain.
"The study conducted by the World Bank highlights the potential of offshore wind energy in the Black Sea and the opportunities for Romania's economic and energy development," said Mr. Sebastian-Ioan Burduja, Minister of Energy for the Government of Romania. "This new roadmap can play a crucial role in strengthening Romania's energy security and facilitating the transition to a green economy, in line with the objectives of the European Union. The adoption of Law 121/2024 on offshore wind energy, supported by the roadmap, creates a solid legal foundation for the development of this sector, while taking utmost care for environmental protection measures in the production areas. Furthermore, developing appropriate financing mechanisms will support the creation and expansion of offshore wind farms, as well as the necessary infrastructure. The success of offshore wind projects depends on international cooperation and therefore I am grateful for the close collaboration with the World Bank and European Union to help achieve our renewable energy goals. Collaboration with international stakeholders and other countries in the Black Sea region will enable technology transfer and the development of joint projects, supporting the integration of offshore wind into regional grids in the following years."
Nathalie Berger, the European Union's Director for Support to Member State Reforms, said: "The European Commission has provided technical support to Romania for the development and implementation of a set of market driven reform proposals that will aim at strengthening the national energy market and support the country's energy transition. Particularly, we worked on an implementation roadmap for the development of offshore wind in Romania and we are convinced this initiative will provide certainty to investors and boost clean and affordable energy for citizens and companies throughout Romania. This initiative also contributes to Romania's efforts in meeting the European Green Deal targets."
Sean Whittaker, Co-lead of World Bank Offshore Wind Development Program, said: "The purpose of this roadmap is to provide a good understanding about offshore wind in Romania and help inform decision-making for the development of a successful industry. The analysis makes it clear that the Black Sea is a promising new frontier in European offshore wind and presents significant untapped potential to meet Romania's long-term renewable energy goals. The relatively shallow coastal waters make it technically and economically easier to install wind turbines. The strategic location allows access to large parts of the European energy market, helping integrate offshore wind into regional grids in the future."
The full roadmap can be downloaded here.
About the Roadmap for Romania
This roadmap is part of a series of offshore wind roadmap studies under the joint Energy Sector Management Assistance Program-International Finance Corporation (ESMAP-IFC) Offshore Wind Development Program.
This report was carried out with funding from the European Union via the Structural Reform Support
Programme and with the support and the partnership of the European Commission's DG REFORM. The study builds on the World Bank's engagement in Romania to support its energy transition. This includes the Country Climate and Development Report (CCDR) for Romania prepared by the World Bank Group and published in 2023.
The work for the preparation of the study started back in August 2022, with engagement and input from the Government of Romania and relevant agencies, the Romanian supply chain and the global offshore wind supply chain.
About the World Bank Group's Offshore Wind Development Program
The joint ESMAP-IFC Offshore Wind Development Program aims to accelerate the uptake of offshore wind in emerging markets. It supports the inclusion of offshore wind into the energy sector policies and strategies of World Bank Group client countries.
