We, at VP, are part of Ally Law, an international alliance of law firms, and through the discussions with other members we can see this trend worldwide: from Chile to Europe, from the US to Australia or from Africa to the Baltic Sea, most countries turn to the eco-friendly route. The PV industry is currently at the crossroad of several stimulating benefits: (i) the learning curve of RES industry has surpassed the costly early period (ii) panels’ efficiency increased significantly, (iii) cost of technology exponentially reduced driving down the time of investment recovery (i.e. faster break-even point) and allowing for a longer period to accumulate profits; moreover, long term predictions show that (iv) cost of energy will increase (= higher revenues) and, also, (v) demand of energy will also increase; add to that (vii) the world’s aspiration (with Europe at its forefront) to go green(er). It is only clear that the renewable trend will continue.

In Romania, the current booming period will likely last for a few years and, afterwards, stabilize on a trend increasing at a smaller pace. Yes, there may be short term hindrances, such as the next year expected long time of equipment delivery/ manufacturing (as many projects will enter construction phase) or legal slippages (such as the recently enacted Law no 259/2021 setting forth a compensation formula that does not take into consideration the energy suppliers balancing costs) or the relative lack of workforce on the construction sector, but when all factors add up, I believe that the sector will intensify.

As an energy specialized attorney, I have witnessed in the last 15 years the oil and gas industry’s struggle to accept artificially created obstacles: little to no stability and predictability of regulations, unfulfilled promises (e.g. the offshore law, amendment to the petroleum law etc), laws issued overnight without proper consultations… all happening in a country having declared first industrial oil production (in 1857)! The renewable sector is the golden child of the Romanian energy sector and Romania is excellently placed in order to catch the train of renewable developments. With plenty of financing available, the framework must be designed as such to enable banks and investors’ trust in the regulatory framework (e.g the PPA framework, setting up the Modernization Fund Unit and related tools, a future CfD clear regulation etc). We need to be very careful though: investors’ trust (especially the trust of very large ones with multiple investment territories in sight) is something that is hardly built and easily lost. As such, it is up to us to avoid hindrances observed in other energy sectors and enhance Romania’s position on the international map of renewables.