Electricity market reform, improving corporate governance of state-owned companies in the energy sector, and green budgeting

Reform 1 aims to decarbonise the Romanian energy sector, with a focus on power generation. Reform 1 covers two main measures: the coal phase-out and the increase of renewables electricity generation capacity. The new Energy Law shall enter into force by 30 June 2023. As a result of those actions, an additional capacity of at least 3,000 MW of renewable energy (wind and solar) shall be put into operation and connected to the grid by 30 June 2026 and a cumulative 3,780 MW of coal and lignite-fired installed electricity production capacity shall be decommissioned by 31 December 2025. Reform 2 focuses on improving the corporate governance of state-owned enterprises, concentrating on the energy sector. In particular, the reform shall improve the transparency and competitiveness of the selection and appointment of members of the management and/or supervisory boards of state-owned companies in the energy sector. The reform shall also complete the listing of at least 15% shares of Hidroelectrica by 30 June 2023. Reform 3 aims at allowing the monitoring of green budgetary expenditure and the assessment of the environmental and climate impact of fiscal policy. Under this reform, the Ministry of Finance shall develop and apply a methodology for assessing the impact of individual budget lines on environmental objectives, in line with the EU taxonomy for sustainable activities and the DNSH Technical Guidance (2021/C58/01). The methodology shall be adopted, published and implemented by 30 September 2023. 1.695 MW of coal-fired installed electricity production capacity have been decommissioned by Romania, as part of the already approved first payment request.

More information can be found on the ministry webpage here.