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Electricity Reform in Romania

Author

Listed:
  • Oana Diaconu

    (Department of Economics and Management, Polytechnic University of Bucharest)

  • Gheorghe Oprescu

    (Department of Economics and Management, Polytechnic University of Bucharest)

  • Russell Pittman

    (Antitrust Division, US Department of Justice)

Abstract

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 ¼ of capacity and enjoys low costs – and b) how many thermal generation enterprises will be created, and with what assets. With more than ½ 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 liberalised wholesale electricity market.

Suggested Citation

  • Oana Diaconu & Gheorghe Oprescu & Russell Pittman, 2008. "Electricity Reform in Romania," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2008-11, Centre for Competition Policy, University of East Anglia, Norwich, UK..
  • Handle: RePEc:uea:ueaccp:2008_11
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    References listed on IDEAS

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    1. Carl Blumstein & Lee Friedman & Richard Green, 2002. "The History of Electricity Restructuring in California," Journal of Industry, Competition and Trade, Springer, vol. 2(1), pages 9-38, June.
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Bianco, Vincenzo & Manca, Oronzio & Nardini, Sergio & Minea, Alina A., 2010. "Analysis and forecasting of nonresidential electricity consumption in Romania," Applied Energy, Elsevier, vol. 87(11), pages 3584-3590, November.
    2. Dzikri Firmansyah Hakam, 2018. "Market Power Modelling in Electricity Market: A Critical Review," International Journal of Energy Economics and Policy, Econjournals, vol. 8(5), pages 347-356.
    3. Khan, Muhammad T. & Thopil, George Alex & Lalk, Jorg, 2016. "Review of proposals for practical power sector restructuring and reforms in a dynamic electricity supply industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 326-335.
    4. Gota, Dan-Ioan & Lund, Henrik & Miclea, Liviu, 2011. "A Romanian energy system model and a nuclear reduction strategy," Energy, Elsevier, vol. 36(11), pages 6413-6419.
    5. Haar, Laura N. & Marinescu, Nicolae, 2011. "Energy policy and European utilities' strategy: Lessons from the liberalisation and privatisation of the energy sector in Romania," Energy Policy, Elsevier, vol. 39(5), pages 2245-2255, May.
    6. Erdogdu, Erkan, 2011. "The impact of power market reforms on electricity price-cost margins and cross-subsidy levels: A cross country panel data analysis," Energy Policy, Elsevier, vol. 39(3), pages 1080-1092, March.
    7. Erkan Erdogdu, 2014. "The Political Economy of Electricity Market Liberalization: A Cross-country Approach," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    8. Hakam, Dzikri Firmansyah, 2019. "Mitigating the risk of market power abuse in electricity sector restructuring: Evidence from Indonesia," Utilities Policy, Elsevier, vol. 56(C), pages 181-191.
    9. Wisuttisak, Pornchai, 2012. "Regulation and competition issues in Thai electricity sector," Energy Policy, Elsevier, vol. 44(C), pages 185-198.
    10. Komarov, Dragan & Stupar, Slobodan & Simonović, Aleksandar & Stanojević, Marija, 2012. "Prospects of wind energy sector development in Serbia with relevant regulatory framework overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 2618-2630.
    11. Busu Mihail & ClodniȚchi Roxana & MureȘan Manuela Liliana, 2019. "A correlation analysis of the spot market prices of the Romanian electricity sector," Management & Marketing, Sciendo, vol. 14(1), pages 150-162, March.
    12. Erdogdu, Erkan, 2013. "Essays on Electricity Market Reforms: A Cross-Country Applied Approach," MPRA Paper 47139, University Library of Munich, Germany.

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    More about this item

    Keywords

    electricity industry restructuring; electricity reform; electricity market; competitiveness; liberalisation;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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