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European Energy Interconnection Effects On The Romanian Economy

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  • Ionescu Mihaela

Abstract

In this paper the author wants to exemplify the extent to which economic growth in Romania is influenced by the current power system infrastructure investments in Europe. Electricity transmission infrastructure in Romania is at a turning point. The high level of security of supply, delivery efficiency in a competitive internal market are dependent on significant investment, both within the country and across borders. Since the economic crisis makes investment financing is increasingly difficult, it is necessary that they be targeted as well. The European Union has initiated the "Connecting Europe" through which investments are allocated to European energy network interconnection of energy. The action plan for this strategy will put a greater emphasis on investments that require hundreds of billions of euro in new technologies, infrastructure, improve energy intensity, low carbon energy technologies. Romania's energy challenge will depend on the new interconnection modern and smart, both within the country and other European countries, energy saving practices and technologies. This challenge is particularly important as Romania has recovered severe gaps in the level of economic performance compared to developed countries. Such investment will have a significant impact on transmission costs, especially electricity, while network tariffs will rise slightly. Some costs will be higher due to support programs in renewable energy nationwide.Measures are more economically sustainable to maintain or even reinforce the electricity market, which system can be flexible in order to address any issues of adequacy. These measures include investments in border infrastructure (the higher the network, so it is easier to evenly distribute energy from renewable sources), to measure demand response and energy storage solutions.An integrated European infrastructure will ensure economic growth in countries interconnected and thus Romania. Huge energy potential of Romania is an opportunity economic recovery after the financial and economic crisis and the recent recession.Interconnected network of high quality will be a lasting investment with long-term positive consequences.

Suggested Citation

  • Ionescu Mihaela, 2014. "European Energy Interconnection Effects On The Romanian Economy," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 482-491, July.
    • Handle: RePEc:ora:journl:v:1:y:2014:i:1:p:482-491
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    File URL: http://anale.steconomiceuoradea.ro/volume/2014/n1/050.pdf
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    References listed on IDEAS

    as
    1. Pollitt, Michael G., 2012. "The role of policy in energy transitions: Lessons from the energy liberalisation era," Energy Policy, Elsevier, vol. 50(C), pages 128-137.
    2. Leuthold, Florian & Weigt, Hannes & von Hirschhausen, Christian, 2008. "ELMOD - A Model of the European Electricity Market," MPRA Paper 65660, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    energy; infrastructure; investments; energy market; energy intensity; economic growth;
    All these keywords.

    JEL classification:

    • F - International Economics

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