Electricity reform in Romania
Romania is a net exporter of electricity to the SE Europe region. Its performance of this role will increase in importance with (a) the completion of another nuclear generator and (b) improvement in capacity for international transmission. Romania has committed itself to an electricity restructuring plan that includes vertical separation, but plans remain uncertain regarding the horizontal restructuring of generation. Among the more important issues yet to be decided are (a) how hydro capacity will be allocated - it has more than 1/4 of capacity and enjoys low costs - and (b) how many thermal generation enterprises will be created, and with what assets. With more than 1/2 of the thermal capacity accounted for by CHP plants and with a winter demand peak for the foreseeable future, there is a real danger of inflexibility and a lack of competitiveness in a liberalized wholesale electricity market.
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