Τhe Romanian Magazine for Energy and Environment

THE MICRO-ENERGY OF ROMANIAN RIVERS IS BIGWHAT FUTURE FOR THE ROMANIAN MINING?NUCLEAR ENERGY DIVIDES EUROPE

???PHOTOVOLTAIC ENERGY - BIG AMBITIONS, FEW INVESTMENTSC. MUSTAREATĂ: TALKING WITH THE INVESTORS

NEWS AND ANALYSIS FROM THE ROMANIAN ENERGY MARKET

AGRI, THE (ALMOST)FORGOTTEN PROJECT

Νovember 2012Nr. 3, Price 10 RON

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Black SeaThe Futureof Romania

THE BI-MONTHLY ROMANIAN MAGAZINE FOR ENERGY AND ENVIRONMENT

YEAR 1st, Issue Nr 03 November-December 2012

Publisher TRIM Publications S.R.L.

Managing Editor Apostolos Κomnos

Marketing Director Apostolos Κomnos

Art direction A.L.L. Designers

Issue Price 10 RON

Editor in Chief Rasvan Roceanu

Deputy Editor in Chief Florentina CioacăEditors Ada Gavrilescu Diana Medan Simon Done

energyworld Magazine TRIM Publications S.R.L. Print & Online Publications Sos Nicolae Titulescu nr. 3 Bloc A1, ap. 62, et. 8, Sector 1 Bucuresti, CP 011131 Τel.: +40 213 110455

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EditorialBy Apostolos Komnos, publisher

A headline on the front page, in the economic media, as a revelation: “The American giants are swallowing, quietly, large share packages in Fondul Proprietatea and Petrom”. A short explanation follows: “American investment funds are buying firmly Fondul Proprietatea and Petrom, the most valuable companies listed on the Bucharest Stock Exchange, even if other investors flee the market and the future is uncertain”. A friend has told me to read “The Oil World”, by Geo Bogza. I have found the book and I learned what was happening in Romania, around ‘20s and ‘30s of the last century:“There was, for example, the rumor that it might be found oil nearby a village. A company installed an oil rig… People began to hope. A piece of land located in an area where oil had been found is ten times more valuable than usual. But, the oil men took careful not to find it so easily. When an oil well was drilling, in a new location, attracting the hopes of people from several villages, then the oil wouldn’t be found even if it was about to spring out of the ground. After drilling had reached a depth of two hundred meters, suddenly everything became mysterious… Then, one day, the oil rig was dismantled, and the parts loaded into carts and send to other fields. No oil was found! Engineers, mechanics, drillers, all had gone in a jiffy! Latter on, after one or two years, a man showed up apparently random saying he wanted to lease the land owned by the locals, but only all together, hundreds of acres at once. [The people] hastened to lease, hoping to gain something, anything. The

very next day after the documents were signed, those who had dismantled their oil rig and loaded it into carts, those who were deceived because no oil could be found, they returned and established their headquarters in that same place”.Nowadays Petrom is the biggest oil company in Romania, and Fondul Proprietatea is the biggest private company and an important shareholder in all major energy companies. Somehow, coming from nowhere, it has been developed a climate of widespread pessimism, so nobody is supposed to expect anything good, at least in the near future. It’s not about just a few villages and it’s not about just oil, as it was in the days of Geo Bogza, it is about a whole country now. Economic analysts as well as businessmen, whether Romanian or foreign, are crying loud that we are knocked down. We go directly into the wall! What’s worse is yet to come! We can see no ray of hope! How could an average Romanian dare to hope? How could he dare to invest his fewer savings? He found out that the Stock Exchange could be a solution, but how can he take the risk to invest when everything is going down and everybody tells him that everything is going down? It is not worth risking your money! Nobody invests anymore! Nobody... except those who are buying shares. Quietly. They are buying a lot and, above all, they are buying cheap, because this is the result in a country where “investors flee the market”. We are no more in the 20s - 30s, we are in 2012, but there is nothing new under the sun.

01NOTHING NEW UNDER THE SUN

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03AGRI, the (Almost) foRGotten pRojectWhile more likely that nabucco will not start in the foreseeable future, another energy project sinks into obscurity. We are talking about AGRI (Azerbaijan-Georgia-Romania-Interconnector), an alternative to Russian gas supply which was verry appreciated when it was launched, but it doesn’t appear lately among the economic headlines.

LNGBy Răsvan Roceanu

9The latest (good) news is, however, almost three months old – the Ministry of Economy announced, on June 28: “SC AGRI LNG PROJECT COMPANY SRL and the British company PENSPEN signed the contract to undertake a feasibility study for the Azerbaijan-Georgia-Romania-Hungary Natural Gas Interconnector, in order to make a technical, financial and economic analysis of the viability of this project. The time limit for completion of this feasibility study is 5 months”.

how much?There are three cost calculations on the company’s official website, www.Agrilng.com: € 1,2 billion for a transit capacity of 2 billion cubic meters/year, € 2,8 billion for a capacity of 5 b.c.m./year and € 4,5 billion for a capacity of 8 b.c.m./year. The same site highlights that these data are only estimates and the feasibility study will give the final answer. It has to be decided if, how and whether Serbia will be also involved in this project. Serbian president Boris Tadici had a talk with his Azeri counterpart about Belgrade’s wish to join the AGRI project, in June last year. “Serbia has a strategic interest in this matter. Serbia wants to join this project… Serbia intends to diversify its sources of gas supply and Azerbaijan is one of our finest and most promising partners”, said B.Tadici, quoted by Azeri press agency News Az. In turn, Azerbaijani president Ilham Aliyev said: “We are eager to see Serbia in this project, given that today the rich hydrocarbon reserves of Azerbaijan are transported to different markets and we are interested in new markets.”

the pros and cons!The estimates that Europe’s dependence on imported gas will increase from 57% today to 84% in 2030 are an argument in favor of AGRI. There is another statement, in addition to those of the heads of states, belonging to Vitali Bailarbaiov, vice-president of Azeri Company SOCAR, who said, in May last year, it would be possible for AGRI to become a priority for Azerbaijan,

if it starts before Nabucco. Since Nabucco fails to stabilize at all, AGRI is more likely to succeed, even for the simple reason that only four countries are involved, so their interests are more easily to harmonize.One of the main arguments against AGRI is the cost. It’s about the costs for the LNG terminal (the construction works at the one in Constanta have not started yet), but also actual gas costs. “Capital” weekly quotes the statements made in May last year by

Corneliu Condrea, chairman of the Board of Administrators of AGRI and a director at the Ministry of Economy. When he had been asked if the gas purchased through AGRI might be more expensive than Russian gas, given the necessary investment and transport costs, he answered: “It is thus at first sight, it is a matter of common sense”. Condrea said that the price will be known only after the feasibility study.

What kind of resourcesWhen he was asked if Azerbaijan has enough resources and enough will to satisfy all its potential customers, Ilham Aliev answered, in the same meeting with Boris Tadic, that his country’s gas resources in are equivalent to at least 2.200 billion cubic metres, having the potential to supply the European market for at least one hundred years. After commissioning of the Shah Deniz 2, scheduled for 2017, the total production from Shah Deniz deposit will reach 25 billion cubic meters per year. The BP’s oficial website quotes Rashid Javanshir, the company’s regional president for the Caspian area, who claims that Shah Deniz deposit has reserves of over 840 billion cubic meters (« over 30 trillion cubic feet »).

There are three cost calculations on the company’s official website, www.Agrilng.com: € 1,2 billion for a transit capacity of 2 billion cubic meters/year, € 2,8 billion for a capacity of 5 b.c.m./year and € 4,5 billion for a capacity of 8 b.c.m./year.

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04PHOVOLTAIC ENERGY – BIG AMBITIONS, FEW INVESTEMENTSTheoretically, everything could not be better: photovoltaic energy is the most generously subsidized of all forms of renewable energy included in the list of EU priorities: 6 green certificates (GC) for each Megawatthour (MWh) produced. This means that for every MWh produced in a photovoltaic park the producer earns a minimum of € 168 and a maximum of € 343 euro, at the trading prices decided by ANRE in February 2012.

PhotovoltaicBy Răsvan Roceanu

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Very few concrete achievementsEven if we are the best in theory, we are (still) doing wrong in practice. According to Transelectrica, only three production plants were connected to the national system in mid-June 2012: the two plants of about 1 MW each, built and operated by Renovatio Trading at Singureni, in Giurgiu county, and respectively, Scorniceşti, in Olt county, plus a very small plant built by a Czech company at Ţânţăreni, in Gorj county. Meanwhile, there have been inaugurated a 1.7 MW plant in Lechinţa, in Bistrita Nasaud county, and another 1.5 MW plant at Pufeşti, in Vrancea county.

No shortage of many and ambitious projects The Ministry of Economy announced in July that the City Council of Mizil town received a grant funding of 46.458.212 RON for a solar plant expected to cover the electricity consumption of the institutions under the administration of the Local Council. Ecomagazin.ro website published, also, in July, an announcement that a

French company wants to build a photovoltaic park at Avrig, in Sibiu county, and that the local authorities had been contacted in this regard. Another ambitious project is also the photovoltaic park that CE Oltenia would like to build in cooperation with a German company. German representatives have already sent a

letter of intent to CE Oltenia, according to the local media. The installed capacity might be 50 MW and the area might be 120 acres, located nearby ash dumps Beterga 1 and 2, where land is not good for agriculture.Data published by Transelectrica shows that network connection contracts for solar projects with a total capacity of 398.9 MW had been already signed and validated, until 06/15/2012. It should be added another 683.1 MW installed capacity of solar parks that have technical approvals for connection. The specialists are still anxiousIn April this year the Romanian Photovoltaic Industry Association (RPIA) highlighted the concern of the community of investors that the GC number could be reduced. At that time Ciprian Glodeanu, president of RPIA, said in a press release: “The green certificates supporting scheme became fully operational after three pending years, while the investors were forced to assume all risks due to a generalized uncertainty, a situation which has led many of the investors in photovoltaic energy gave up of

Data published by Transelectrica shows that network connection contracts for solar projects with a total capacity of 398.9 MW had been already signed and validated, until 06/15/2012. It should be added another 683.1 MW installed capacity of solar parks that have technical approvals for connection.

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such investments or chose other countries with a stable legislation in this field.” Glodeanu added that: “In our opinion, the discussions run for changing the help scheme of green certificates deliver no good for any part involved, especially following less than one year since the primary and secondary legislation has been enforced.”The extend for one year ot the 6 GC/MWh supporting scheme, empowered by Law 134/2012, might be considered either half a victory or half a defeat of the lobby done by RPIA; only the investors will decide this.

Things are going much faster on a small scaleWaiting for the big investors in this area, small and very small investors move much faster (and more efficient). Besides Renovatio Trading, which we talked about earlier, a businessman from Târgu Jiu, Cornel Eftenoiu, administrator of the company Darcom Group SRL, decided to exploit this form of energy at the micro level. He installed 300 photovoltaic panels in the courtyard of his office (without

asking for European funds because of bureaucracy), that produce a total of 55 kilowatts, according to gorjexclusiv.ro website. The panels are made in Germany.

Insufficient regulationThe success example from Târgu Jiu hilights an important problem: the lack of a viable and well-funded plan of supporting the installation of photovoltaic panels to retail customers and, above all, to the millions of individual consumers. So far, “Casa Verde”(Green House) program was limited to subsidize the installation of solar panels for heating and hot water only. Photovoltaic energy is not included in this program, unlike France and Germany, for example, where million of photovoltaic panels were subsidized in order to be installed on rooftops, or in private courtyards.

So far “Casa Verde”(Green House) program was limited to subsidize the installation of solar panels for heating and hot water only. Photovoltaic energy is not included in this program…

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05C. MUSTAREATĂ: TALKING WITH THE INVESTORSCălin Mustareaţă, manager of SolartechRVC, is one of these Romanian investors who have started to exploit solar energy on industrial scale. The photovoltaic park that is being built now by him, with an installed capacity of 26 MW, is expected to become operational in September 2013.

Photovoltaic

15Energyworld: Judging according to the press headlines, we conclude that Romania is the new target for investors in solar photovoltaic power. How hard is, actually, the competition in this field?Călin Mustăreață: There are very few parks actually built, currently. The attainment of the construction permits and technical connection permits does not involve high costs, so there are now approvals for 600 MW or 700 MW, but I think that, in reality, there are parks already built only for less then 15 MW. Romanian investors are facing problems because of the banks, which cover only 60% of those projects costs, and, even this money is actually paid only after the photovoltaic park is connected to the network. Another problem is the scarcity of the capital available in Romania, and foreign investors bump into a climate of mistrust, on the background of an unfavorable image of the Romanian economy. Also, the green certificate system is not very clear. Their market value varies between a minimum and a maximum, so the creditor banks do not know exactly how much will be recovered by the investor to whom it was given the credit. It is clear that many investors are not interested, under the circumstances. There are many rumors that everyone builds, everyone buys but there are not very many real transactions. EW: Has Romania qualified personnel for building solar parks?CM: Investments in photovoltaics could not exist without subsidies. Subsidies have been stopped currently in many European countries. There are still subsidized

investments in Romania and Bulgaria. Because of that, all global investors, together with global suppliers and global general contractors, those who have experience in the field, all of them are interested in the Romanian market. There are not enough qualified people in Romania, but this is not an impediment because of the specialists coming from abroad, who are now available. When

transactions will be frequently and many parks will be developed, they will come to build them.EW: Transelectrica announced that it has already given approval for technical connection to the network for hundreds of MW in photovoltaic plants. How will respond Transelectrica to potential new applications for new connections?CM: It isn’t possible for Transelectrica not to be responsive!

These technical approvals have limited time. If the connection isn’t accomplished, the approvals expire. This means that not all the approvals that have been issued so far will turn automatically into investments. You have to find money, to find land for building and to find customers ready to buy your energy…EW: Where have been made the panels used in Romania, given the scandal of dumping charges that European photovoltaic manufacturers are bringing to Chinese producers?CM: 80% of panels are Chinese now. Chinese producers dominate the market through both the quality and the price. It is not a question of dumping. Chinese manufacturers have a high professional level, and they just offer a good quality at an affordable price. Nobody would use bad Chinese panels, just because they are cheap. Their quality has been implicitly recognized by the market.

Romanian investors are facing problems because of the banks, which cover only 60% of those projects, and, even this money is actually paid only after the photovoltaic park is connected to the network.

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06The micro-energy of romanian rivers is big3,400 rivers in romania are suitable for the construction of small hydro power plant (shP). This could allow romania to become exporter of green energy, if operated properly. nevertheless, the environmentalists and the media are reporting environmental breaches and starting of construction in protected areas.

HydroelectricityBy Diana Medan

The green war Several NGOs have complained that riverbeds Capra, Buda and Otic, in Arges county, and besides their own natural habitats, which are protected by law, had been destroyed due to construction of hydro power plants. The project worth more than € 13 million Euro implies the construction of 10 SHP on these three rivers, according to data published by media. The problem is that this area is part of the Natura 2000 , an ecological network of protected areas in the European Union, which includes a representative sample of threatened species and habitats, subject of global concern. According to estimated calculations, one small hydro plant with an average power of 2MW costs about € 2.5 million, but developers can make a profit of € 200,000 per year from the sale of energy, plus over € 1 million profit from green certificates, the same year. Those certificates are guaranteed by state for 15 years, while savings will be 10 times the initial investment, the profit reaching over € 20 million Euro.

romania – a hydro power “el Dorado”3400 Romanian rivers, of the 4011 existing rivers, have good energy potential. An official report, quoted by Pro TV, identified over 4,000 locations which are appropriate for small hydro plants. It is also estimated that theoretical potential of rainfall in Romania is about 230 TWh/year, the theoretical potential of water leakage is about 90 TWh/y, and the theoretical linear potential of watercourses is about 70 TWh/y, according to a study on assessing current potential of renewable energy in Romania, conducted under the auspices of the Ministry of Economy.

investment in small hydro plants – an upward trendInvestments in SHP are increasing. TMK Hydroenergy Power, Romanian part of CEZ Group, started the total refurbishment of its hydropower system, a process that would be completed in 2013. CEZ Romania purchased the hydro power plants system located near Reşiţa, in Caraş Severin county, consisting of 4 SHP (Grebla, Crăinicel 1, Crăinicel 2 and

17Breazova), and the hydro facilities for Trei Ape, Gozna, Valiug and Secu, having a total installed capacity of almost 18 MW, in 2011.Italian company Espe Energia took a loan of € 13 million, this summer, in order to build a new small hydro power plant on Săpânţa river, in Maramureş county, with an installed capacity of 9,88 MW – it is said on www.Finanţiştii.ro. The project involves a total investment of over € 23 million Euro and it will be funded completely private – no EU funds. This will be realized in addition to other 5 SHP that have been already purchased since 2004 by Espe Energia. Rott Energy SRL Cluj-Napoca Company has built two SHP on Râul Mic river, in Cugirului Mountains, with a total installed capacity of 1,7 MW, and the project is near

completion. Other 2 SHP are under construction on Râul Mare river, and respectively on Boşorog affluent, having a total installed capacity of 2,25 MW, that will be finished next year, according to Adevărul.ro.Local authorities of Cluj county and Salaj county started negotiations with PVB Power Bulgaria AD, a company with Italian shareholders, towards a public-private partnership for building 7 SHP on Someş river. The construction could start in 2013 and it would last 3 years, and the total value of the “Somes River” project is over € 220 million Euro, as Gândul daily newspaper announced .

According to estimated calculations, one small hydro plant with an average power of 2MW costs about € 2.5 million, but developers can make a profit of € 200,000 per year from the sale of energy, plus over € 1 million profit from green certificates, the same year. Those certificates are guaranteed by state for 15 years, while savings will be 10 times the initial investment, the profit reaching over € 20 million Euro. Table nr. 1: hydropower potential

river surface Precipitation Water leakage Theoretic Technical km2 gWh/an gWh/an % ep TWh/an TWh/an Someş 18.740 23.000 9.000 39 4,20 2,20 Crişuri 13.085 10.500 4.500 43 2,50 0,90 Mureş 27.842 41.000 17.100 42 9,50 4,30 Jiu 10.544 13.000 6.300 48 3,15 0,90 Olt 24.507 34.500 13.300 38 8,25 5,00 Argeş 12.424 12.500 5.000 40 3,10 1,60 Ialomiţa 10.817 8.500 3.300 39 2,20 0,75 Siret 44.993 44.500 16.700 37 11,10 5,50 Total of interior rivers 237.500 230.000 90.000 39 51,50 24,00 Dunăre ............. ............ ............ ............ 18,50 12,00 Total of Romania 237.500 230.000 90.000 39 70,00 36,00 Sursa: minind.ro

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07Biofuels, under accusation once moreusing agricultural soil for production of biofuels “it’s a crime against humanity”, said Jean Ziegler, the former united nations special rapporteur on the right to food, in october 2007, given the circumstances of a global food crisis which marked the period of 2007-2008. this year’s drought and the recent increase of the food price seem to revive the old controversy biofuels vs. food.

BiofuelsBy Simon Done

19a new global food crisis is coming?World Bank Group has just pointed out the threatening effects of ththis year’s drought. “Food prices rose again, sharply, threatening the health and well-being of millions of people,” said Jim Yong Kim, the President of this institution, in a press release issued on August, 30-th. According to this document, the international prices of maize and wheat have risen by 25 percent each from June to July, and the price of soybeans has increased by 17 percent. Overall, in 2012, food prices increased in April, came down in May and June, and sharply increased again in July. “The current situation in world food markets, characterized by sharp increases in maize, wheat and soybean prices, has raised fears of a repeat of the 2007-2008 world food crisis. But swift, coordinated international action can stop that from happening”, is mentioned in a joint statement of the Food and Agriculture Organization of the United Nations (FAO), the International Fund for Agricultural Development (IFAD) and the World Food Programme (WFP).American corn, a reason for concern The agricultural production of USA, the world’s largest producer of corn, suffered massive losses due to the drought, causing an uncontrollable growth of grain prices. Record prices have been reached at the Chicago exchange, on July 19: the corn has been sold at $8.16 a bushel and soybeans at $17.17 a bushel; the prices rose to an all-time high, according to The Guardian. According to the USA national program “Renewable Fuel Standard (RFS)”, approximately 40% of the country’s annual corn production

has to be used in biofuels industry (it’s about fuels containing 10% methanol), in order to reduce greenhouse gas and, finally, to protect the environment. The European Union has set itself also a target for transport fuels: 10% of them must come from biofuels industry, by 2020.

Pros and consJosé Graziano da Silva, the President of FAO, has highlighted the high risk of such a large biofuels production in USA,

in an article published in early August, in Financial Times. “An immediate, temporary suspension of that [RFS] mandate would give some respite to the market and allow more of the crop to be channelled towards food and feed uses” the senior official believes.Under current circumstances, we can expect “a competition between the food, feed and fuel sectors” for different kind of crops – says J.G. da Silva – and the avoiding of a future crisis depends mostly on the reaction of the nations.

Despite all alarms and requests to suspend the production of biofuels, many specialists consider that US regulations will not change, especially during an election year. If it will be taken any possible actions against biofuels, these will affect other industries, involuntarily and inevitably, like, for example, the energy industry, and, moreover, not everyone agrees with them. For instance, the US Agriculture Secretary, Tom Vilsack, said to The Guardian that the production of biofuels is having a positive impact on the country because of the lower fuel prices.

less biomass for energy, more foodThe world’s biggest food production group, Nestle, has called to lobby for ending the increase of crops production for biofuels to the detriment of food. “This does not mean that biofuels should be scrapped entirely, but that producers should use other organic materials”, declared the CEO Peter Brabeck for Swiss newspaper SonntagsZeitung, quoted by Reuters. “Our problem is that almost half of US corn production and 60% of European rape production is being used for fuel production,” he continued. Peter Brabeck said also that farming for the production of biomass is “an aberration”, at the end of World Water Week 2012 Conference, which was held in Stockholm, at the end of August. He continued to say that no matter how well-intentioned the initiative was at the beginning, it’s time to be rational and to realize that this is not an effective solution: “You must know when to say «stop here!»”.

According to the USA national program “Renewable Fuel Standard (RFS)”, approximately 40% of the country’s annual corn production has to be used in biofuels industry, in order to reduce greenhouse gas and, finally, to protect the environment.

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08What future for the romanian mining?40% of energy production in romania is still based on coal, therefore keeping the mining going on is vital. this can be possible only if the sector will be restructured, as it has accumulated huge losses over the past 20 years.

Coal miningBy Florentina Cioacă

21Our country has two types of energy coal: the lignite (brown coal), extracted by Societatea Naţională a Lignitului Oltenia (SNLO), and pit-coal, in the care of Compania Naţională a Huilei (CNH). After both companies hadn’t been able anymore to sustain themselves separately, Ministry of Economy decided to merge the mines with the power plants to which they were delivering the coal. The country’s main energy resourceThus, four pit-coal mines (namely the viable ones of the seven who are working currently in Jiului Valley) merged with Paroşeni and Mintia Deva power plants and they form together Complexul Energetic Hunedoara (Hunedoara Energy Complex). Societatea Naţională a Lignitului Oltenia (SNLO) and the current Turceni, Rovinari and Craiova power plants have been jointly included in a new company, Complexul Energetic Oltenia (Oltenia Energy Complex). The establishment of Complexul Energetic Oltenia was completed this summer. “Strengthening the turnover of the four companies rises up to € 1 billion the financial potential, which will allow us to ensure the necessary investments”, said Mircea Mezinca, manager at SNLO before the merging.

Bad news from Jiului Valley What will happen in Jiului Valley? The establishment of Complexul Energetic Hunedoara has succeeded until now, but only in a smaller version, which contains only two power plants in the area, Mintia Deva and Paroşeni.The pit-coal sector encountered many difficulties over the years. There are

now only seven mines working, a processing plant, one mine in rescue station, 7,690 employees and a production of 2.1 million tons in 2011. CNH operating license expires in 2024. The mining area is now only 47 square kilometers large.“ The three mines that are no longer viable, and should be closed by 2017, will be included in one company, called Compania de Închideri Mine Valea Jiului (Mine Closures Company – Valea Jiului), in the coming weeks. These units are Petrila, Paroşeni and Uricani. The other four mines will form a company that will merge with Complexul Energetic Hunedoara (Energy Complex Hunedoara)”, said a representative of the Ministry of Economy, for Energyworld. The biggest problem is the huge state debt of CNH, amounting to €1.2 billion, wich includes all arrearages and interests.

The Romanian state will recover only a small portion of this debt and the remainder will be simply deleted. The three unprofitable mines will be subsequently declared bankrupt by Agenţia Naţională de Administrare Fiscală (The National Agency for Fiscal Administration). “The enforcement will be done for the debts of the three mines, the value of which was determined by an authorized expert, namely about € 50 million”, also told the representative of the Ministry of Economy.

the privatizationThe deadline agreed with the IMF for CNH insolvency was September 2012, but, except an emergency ordinance passed by the former government in April, it hasn’t been done anything yet. The Ministry of Economy anticipates, however, that this problem will be solved by the end of January 2013. This is done while the government is committed to the IMF to privatize the two new energy complexes, Oltenia and Hunedoara, next year. The major package of shares in the two companies would be sold to strategic investors, according to the latest negotiations.

Romanian mining has strongly deteriorated due to lack of funding, since 1989. In that year, more than 112,000 people were working in mining. Today CNH and SNLO have, together, only 20,000 employees. Since 1996 10 government decisions have been approved for the closure of 550 mines, which were no longer economically viable. The closure works were completed for 175 of these mines, 87 are being closed, and the procedures have not yet begun for 288 mines. In the past 12 years, the state budget allocated for mine closing was € 230 million and the remaining work will require another € 1 billion Euro by 2017.

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09Nuclear eNergy divides europeeuropean policy on nuclear power is not common at all. The attitude on that matter vary from countries which intend to simply abandon the use of this source, like germany, to those still debating the issue, like France, or even those who want to continue to invest in this sector, such as poland, Bulgaria and romania.

Nuclear energyBy Diana Medan

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germany - long-term plansBetween € 200 and € 400 billion – this is the possible cost of abandoning nuclear power by Germany, according to the report recently elaborated by the operators of power lines of that country. Germany announced that it will stop 8 of its 17 reactors, giving up 8000 MW. The decision occurred since last year, because of the pressure of green parties, and also because of increasing of global fear following the Fukushima nuclear disaster. Berlin authorities are considering wind and solar energy, or classical gas plants, or coal plants as an alternative to nuclear energy. Nevertheless, using of the “transition energy” and the preparation of the system, for the desired change by 2022, imply an overhaul and an expansion of the low voltage electricity grid and the joint with wind farms. This operation only rises up at about € 25 billion, meaning only 5% to 10% of the total cost of the change required.Some specialists believe that the German government intends, actually, to support the construction of nuclear plants in foreign countries

through financial guarantees. The list of important projects includes Hainan (China), Jaitapur (India), Temelin (Czech Republic), Wylfa (Wales), Olkiluoto and Pyhäjoki (Finland) and even Cernavodă, in Romania. Critics of these projects, like Heffa Schücking, the head of the environmental organization “Urgewald”, say safety is not being properly taken into account by the German government, given that, both in Romania and in India, the planned reactors will be situated in earthquake zones.

spain – unsafe conditions for reformThe 466 MW reactor of Garoña nuclear power plant, in northern Spain, will be closed in July 2013, after 42 years of operation. The announcement has been done recently by Nuclenor, the company operating the plant, which is owned, in equal proportions, by Iberdrola and Endesa. The paradox is that the spanish government previously granted Nuclenor precisely … the permission to request an extension of the operating license until 2019.

Berlin authorities are considering wind and solar energy, or classical gas plants, or coal plants as an alternative to nuclear energy. Nevertheless, using of the “transition energy” and the preparation of the system, for the desired change by 2022, imply an overhaul and an expansion of the low voltage electricity grid and the joint with wind farms.

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Spanish parliament had voted, in 1984, in favor of abandoning nuclear energy, establishing then a period of 40 years for this matter. However, another amendment was passed last year that allows the extension of this period for another 10 years, in order to allow the country to use cheaper energy during this period of crisis.

France – intense debatesAuthorities in Paris are divided on nuclear energy. Highlighting that this is “industry of the future”, France’s minister for industrial renewal, Arnaud Montebourg, said clearly: “We need energy that is not too expensive”, in an interview for BFM television station. He pointed out that the French industry “survives in difficult times like crisis and oil shocks” thanks to cheap nuclear energy, and “France’s existing nuclear infrastructure is a huge asset, which allowed France to built its industry”. Montebourg’s opinion is that “the nuclear sector should be rebalanced, not abandoned”. “Our strategic option is to have a cheap, affordable energy, in sufficient quantity”, French minister told also. These statements have produced a great echo, given that President Francois Hollande promised, during the presidential election campaign, to reduce the share of nuclear in

French electricity production from 75% today to 50% by 2025.The Fessenheim nuclear plant, the oldest still operating in France, will be shut down in December 2016, according to the announcement made by François Hollande at a conference on the environment, held in Paris in mid-September. The announcement sparked discontent among nuclear plant managers, who sent a common letter of support for Fessenheim’s workers.

poland and Bulgaria – going straight ahead Kozlodui nuclear plant, in Bulgaria, is preparing to acquire a new reactor, the seventh. CEO Valentin Nikolov said five companies have already announced their offers: the Americans from Westinghouse (part of Toshiba Corporation), the French from Areva, Areva and Mistubishi in consortium, a Bulgarian company – Risk Egineering and Australians from Worley Parsons. The first Polish nuclear plant would be build through an alliance of four companies controlled by the Polish government. This nuclear plant, having three reactors and a capacity of 3,000 MW, is expected to become operational by 2020.

Spanish parliament had voted, in 1984, in favor of abandoning nuclear energy, establishing then a period of 40 years for this matter. However, another amendment was passed last year that allows the extension of this period for another 10 years….