The energy transition, a phrase used often these days, proposes a new approach to economic growth and consumption, a step towards a model that gives Romania the opportunity to redefine its strategic role in the region.
Autor: GEORGE AGAFIȚEI, Institutional Affairs and Sustainability Director, PPC Romania
Cheap energy is a direct result of the energy transition, which is also a determining factor for a competitive economy and for a daily life with fewer financial constraints. Achieving this goal has always been a challenge, but developments in recent years are putting unprecedented pressure on the current energy model, so we are now talking about a transition to something new.
Is the current energy model appropriate for the future?
Until recently, our aim was to obtain competitively priced energy largely by burning fossil fuels: coal, oil, natural gas. These practices have led to two major problems: a vicious cycle of global warming and climate change and a major insecurity of energy supply due to the development of geopolitical dependencies that have become real weapons in the hands of autocratic regimes.
The climate problem, summarized, refers to the accumulation of very large amounts of carbon dioxide in the atmosphere that cannot be explained by the planet’s otherwise very slow natural warming-cooling cycles. This results in higher global temperatures and modified climate patterns, with consequences for life on Earth.
On the other hand, oil and natural gas are often supplied by countries that do not share our democratic values. Although Romania currently has a relatively high degree of energy independence, we will not be able to make use of these resources in a way that would allow their economic exploitation for more than 20-30 years. And our domestic production capacity is insufficient to turn us into a major European player that could influence prices on the markets to which we are connected.
In the medium and long term, the current energy model needs to be redesigned to develop energy resilience that can generate economic competitiveness in a world where there is increasing talk of corporate social responsibility.
The promise of transition
In this context, Romania and the other EU Member States have proposed a change in the common vision on energy. In concrete terms, this involves changes in energy production, as well as in the way we heat and cool our homes and power our transport, household appliances, and industrial equipment. We are essentially proposing a transition to a new energy model because we are aware of the vulnerabilities of the current one and the need to keep the cost of energy low.
The change will be based on renewable energy production, where Romania has fantastic natural potential, and on energy efficiency. Fueled by domestic wind and solar capacity, electricity will play a much bigger role than it is today and will likely dominate the residential heating, transport, and—to some extent—industrial sectors. Just look at the current impact of photovoltaic panels, which have changed the household consumer’s view on energy usage.
Energy efficiency, on the other hand, is about a rational relationship with energy, not about deprivation and decrees to keep temperatures low in people’s homes. Specifically, we are talking about an infusion of technology that for example manages energy production and consumption in an automated and efficient way, so that we no longer need to allocate about 10% of our production capacity just to manage peak consumption for 30 minutes to 1 hour a day.
A just and demystified transition
It is important to remember that the changes we are envisioning are not perfect individually, but together they are capable of meeting economic competitiveness, energy security, and environmental objectives.
For example, indeed, battery production is not a pristine industrial process, but when all its stages are taken together, from raw material extraction to production, assembly, and operation, electric vehicles release significantly less carbon and health-damaging particles into the air. A gas boiler may be a convenient and seemingly cheap solution for heating your apartment, but in the long run a photovoltaic panel system in combination with a heat pump will result in lower costs for the consumer and almost zero environmental impact.
The use of more electricity from renewable sources is not a conspiracy against national coal or natural gas production capacity. It is about investing billions of euros across Romania, largely to replace obsolete generation capacity and to modernize and expand distribution networks. They will generate net job gains and, through the advanced technologies on which they are based, will contribute to the growth trajectory of the national IT sector.
Yes, the transition will generate costs that some will find difficult to bear. In fact, there are instruments made available by the EU, such as the Social Climate Fund (and others), through which Romania will have EUR 11 billion at its disposal over the 2026-2032 period to come up with support measures for vulnerable citizens, small businesses, and transport users.
Responsible public policy
It is therefore essential that this transition process, to which Romania is already committed, be guided responsibly by the authorities and taken on by economic operators (energy producers and suppliers) and consumers, both domestic and industrial.
First and foremost, we need to talk about public policies that provide a predictable investment environment. Secondly, the energy transition is a complex process that needs to be explained in a way that everyone can understand, through extensive public communication initiatives. Change can be interpreted as a threat in certain segments, and without a good regulatory framework and an engaged political community, Romania risks wasting a historic opportunity for development and for sustainable growth in its citizens’ living standards.
Short bio
- George Agafiței has been in charge of the Institutional Affairs and Sustainability department since October 2023, representing the company in the public policy process in Romania together with his team. At the same time, he is responsible for promoting a sustainable development system and integrating sustainability at the heart of corporate culture.
- He started his career in the private sector and has worked in the public sector for the past 11 years.
- In the Romanian Government, since 2016, he has served as Personal Advisor to the Deputy Prime Minister and the Economy Minister, Advisor to the National Defense Minister, as well as State Advisor for the economic and energy sector in the Prime Minister’s Chancellery, where he coordinated the inter-ministerial committee for energy from December 2021 to July 2023.
- George Agafiței graduated with a Bachelor’s Degree from the Communication and Public Relations School of SNSPA, which was followed by a Master’s Degree at the Foreign Languages and Literatures School at the Bucharest University. His education continued with several courses and certifications in various fields.
