Reservoirs will be conceded to foreign entities, in addition not other resources of Romania, according to a sovereigntist publication.
NEWS: As I anticipated, the so-called blunders in the auctions for the feasibility study for the Tarnița plant had a specific design. After what he mentioned the names of the some of the foreign businesses with an interest to invest in the project, Energy Minister Sebastian Burduja, dropped a bomb: reservoirs will be franchised, so that others (foreign companies, obviously) might build hydroelectric power plants in Romania.
NARRATIVE: Romania’s hydropower resources will be handed over to foreigners, who will impose skyrocketing prices on the energy they produce.
The Energy Ministry will notify the relevant authorities with regard to the spread of false information
WHY THE NARRATIVE IS FALSE: Despite the claims of Romanians sovereigntists, the draft emergency decree regarding the concession of reservoirs does not necessarily entail their conveyance to companies operating outside the country, but merely provides a legal framework for the development of Romania’s energy storage capacities, by building pumped storage hydroelectric power plants on those reservoirs with hydroelectric potential. The aforementioned law does not “hand over” Romania’s resources, but seeks to foster investments on a free market, including from the Romanian state or Romanian businesses. These power plants will contribute to ensuring the security energy of the country, offering a strategic energy storage capacity similar to that of a “green battery” that stabilizes and streamlines the national energy system. At the same time, the new regulations will eliminate double tariffs applied to stored energy, the Energy Ministry also states.
Furthermore, Article 136 in the Constitution of Romania and Article 3 of the Law on Waters clearly stipulates that waters with exploitable energy potential are exclusively subject to public property and cannot be alienated .
Pumped storage plants are the most commonly used technology for ensuring long-term energy reserves
BACKGROUND: Location and design studies for building pumped storage hydroelectric power plants in Romania have been carried out since the 70s. Hydropower plants with pumped storage technologies represent a method of storing energy that can be transformed in hydroelectric energy. Elsewhere, this long-term storing technology has been used for more than half a century, in May accounted for over 99% of the energy storage capacity in bulk at global level. Hydropower plants with pumped storage can also provide auxiliary services to help balance the power system, such as the inertia from rotating turbines, which ensures the system functions at the proper frequency and reduces the risk of power outages. Hydraulic pumping storage facilities thus act as huge “water batteries”. They represent a flexible option of storing excess energy generated from renewable sources on a cost-effective scale.
Considering that the transition from fossil fuels to renewable energy sources in order to achieve climate goals has become a priority at the level of the European Union, whereas wind and solar energies are strongly reliant on the weather, the lack of hydropower storage capabilities poses a security risk for Romania.
There’s no European country with favorable geography that doesn’t have at least one pumping station, ensuring the security of its national energy system, including our neighbors - Serbia, Bulgaria and Ukraine. In technical terms, Romania was drawn back about 20-25 years in the field of electricity storage according to report published by the National Forecast Commission.
The operating costs of a pumped storage hydroelectric power plant are low compared to other types of power plants. Such a plant has a long operating lifetime, of about 80-100 years. Its installed capacity can reach up to 1,000-3,000 MW and it has a fast response time of several seconds. These power stations are impervious to the growing prices of oil, gas or coal and do not require fuel imports. Their energy efficiency stands at approximately 75-80%.
All these reasons lead to the conclusion that Romania must saddle take advantage of this technology. To that end, the Energy Ministry developed a project for the modification and completion of the existing legal framework, targeting both the law on electricity and natural gas, as well as the law promoting the production of energy from renewable sources.
The narrative under review echoes the metanarrative that claims “Romania is a Western colony” which has completely renounced its sovereignty and independence. The thesis is intensive promoted by Russian and pro-Russian propaganda and is a direct carry-over of narratives circulated during the Cold War period, depicting a preying and profiteering West. The thesis also lines up with other false narratives regarding the Romanian energy system, circulated since the fall of 2022, which claimed that Hidroelectrica will be taken by foreigners, or that Romania’s electrical power output will no longer be made available to the population, because it will be transferred to the Republic of Moldova .
PURPOSE: To weaken trust in state authorities, to amplify anti-Western sentiment, to promote sovereigntist rhetoric, to stir protests and anti-establishment movements.
OFFICIAL REACTION: The Energy Minister specified that “all concessions will observe Romania’s Administrative Code, requiring any investor to pay royalties to the Romanian state and use the energy potential exclusively for the development of pumped storage hydroelectric power plants. In addition, any foreign applicant will be evaluated in advance according to Emergency Decree no. 46/2022, which strictly regulates foreign direct investments and includes rigorous inspections by the Commission for the examination of foreign direct investments (CEISD). In the event any suspicion arises as to the applicant’s intentions, they will no longer be conceded any water resources [...] Romania will never “concede” resources under my mandate, but provides a framework through which investors, especially from Romania, can contribute to a sustainable and safe energy storage system comprising pumped storage hydropower plants. By means of this project, we make sure that renewable energy is used efficiently and smart, enhancing national security and boosting our common green transition efforts”.
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