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Regulating district heating in Romania: Legislative challenges and energy efficiency barriers

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  • Poputoaia, Diana
  • Bouzarovski, Stefan
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    Abstract

    Many states in Eastern and Central Europe (ECE) possess extensive district heating (DH) networks that were constructed during the days of communist rule in order to provide a universally accessible energy service that supported Soviet development policies. But the post-communist transition was marked by the exacerbation of the sector's numerous technical, economic, regulatory and environmental problems, accompanied by its abandonment in favour of alternative methods of domestic heating. Recent efforts to increase the use of DH in ECE as a result of environmental and energy security concerns have taken place in an absence of critical, context-sensitive research. The purpose of this paper is to explore the legal aspects of post-communist DH reforms in Romania, with the aim of identifying some of the governance challenges faced by state authorities in managing the sector. In broader terms, we seek to explore the extent to which the Romanian legislative framework is in a position to promote energy efficiency in DH. This has been achieved via an analysis of formal policy documents, government decrees, strategic documents and laws pertaining to this sector, as published and subsequently amended in the Official Gazette. The conclusions of the paper identify the key regulatory issues in the sector--especially with respect to the tariff setting process and the division of competences among different organisations in it--while suggesting a set of policy steps and general restructuring approaches that could help overcome the current situation.

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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 38 (2010)
    Issue (Month): 7 (July)
    Pages: 3820-3829

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    Handle: RePEc:eee:enepol:v:38:y:2010:i:7:p:3820-3829

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    Web page: http://www.elsevier.com/locate/enpol

    Related research

    Keywords: District heating Energy regulation Energy efficiency;

    References

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    1. Brita Olerup, 2000. "Scale and Scope in Municipal Energy Planning in Sweden," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 43(2), pages 205-220.
    2. Kennedy, D., 2005. "South-East Europe Regional Energy Market: challenges and opportunities for Romania," Energy Policy, Elsevier, vol. 33(17), pages 2202-2215, November.
    3. Rezessy, Silvia & Dimitrov, Konstantin & Urge-Vorsatz, Diana & Baruch, Seth, 2006. "Municipalities and energy efficiency in countries in transition: Review of factors that determine municipal involvement in the markets for energy services and energy efficient equipment, or how to aug," Energy Policy, Elsevier, vol. 34(2), pages 223-237, January.
    4. Lund, Henrik & Hvelplund, Frede & Ingermann, Karl & Kask, Ulo, 2000. "Estonian energy system Proposals for the implementation of a cogeneration strategy," Energy Policy, Elsevier, vol. 28(10), pages 729-736, August.
    5. Hughes, Gordon, 1990. "Are the Costs of Cleaning Up Eastern Europe Exaggerated? Economic Reform and the Environment," CEPR Discussion Papers 482, C.E.P.R. Discussion Papers.
    6. Nilsson, J. Stenlund & Mårtensson, A., 2003. "Municipal energy-planning and development of local energy-systems," Applied Energy, Elsevier, vol. 76(1-3), pages 179-187, September.
    7. Lund, H. & Siupsinskas, G. & Martinaitis, V., 2005. "Implementation strategy for small CHP-plants in a competitive market: the case of Lithuania," Applied Energy, Elsevier, vol. 82(3), pages 214-227, November.
    8. Grohnheit, Poul Erik & Gram Mortensen, Bent Ole, 2003. "Competition in the market for space heating. District heating as the infrastructure for competition among fuels and technologies," Energy Policy, Elsevier, vol. 31(9), pages 817-826, July.
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    Cited by:
    1. Ye, Xuemin & Li, Chunxi, 2013. "A novel evaluation of heat-electricity cost allocation in cogenerations based on entropy change method," Energy Policy, Elsevier, vol. 60(C), pages 290-295.
    2. Zhang, Junli & Ge, Bin & Xu, Hongsheng, 2013. "An equivalent marginal cost-pricing model for the district heating market," Energy Policy, Elsevier, vol. 63(C), pages 1224-1232.
    3. Connolly, D. & Lund, H. & Mathiesen, B.V. & Werner, S. & Möller, B. & Persson, U. & Boermans, T. & Trier, D. & Østergaard, P.A. & Nielsen, S., 2014. "Heat Roadmap Europe: Combining district heating with heat savings to decarbonise the EU energy system," Energy Policy, Elsevier, vol. 65(C), pages 475-489.
    4. Iacobescu, Flavius & Badescu, Viorel, 2011. "Metamorphoses of cogeneration-based district heating in Romania: A case study," Energy Policy, Elsevier, vol. 39(1), pages 269-280, January.

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