Romania: Energy efficiency novelties can revive

investments in the energy sector

The Romanian Law no. 121/2014 on energy efficiency (the Law) was published in
the countrys Official Gazette No. 574/2014. This regulatory act entails the
implementation of the Directive 2012/27/EU of the European Parliament and of the
Council of 25 October 2012 on energy efficiency and establishes the legislative
framework for the development and application of Romanias national energy
efficiency policy.
The Law intends to increase energy efficiency in the country, with the aim of
reducing energy consumption by 19% by 2020. The Energy Efficiency Department
(the Department) is established within the National Energy Regulatory Authority
in this respect as the body responsible for drafting legislative proposals, promoting
the development of the energy services market, monitoring the progress of the
implementation of the national energy efficiency plan, and cooperating with various
authorities involved in this process.

Contact
Toma Barbaras
Attorney at Law
T: +40 2 131967 90
E: t.barbarasa@schoenherr.eu

The private sector energy efficiency measures

The Law introduces (article 9) certain obligations imposed on business operators,
which must appoint experts to perform an energy audit every four years and
prepare energy efficiency improvement programmes that include short, medium and
long term measures.
The business operators must also prepare and submit to the Department a
statement of their total annual energy consumption by April 30th of each year.
Those failing to perform energy audits until the entry into force of the Law (4
August 2014) are obliged to perform them by 5 December 2015.

Contact
Theodora Geangos
Attorney at Law
T: +40 21 319 67 90
E: t.geangos@schoenherr.eu

By way of exception, those business operators whose annual energy consumption is

more than 1,000 tonnes of oil equivalent and that have implemented a certified
energy or environment management system will not be obliged to prepare an
energy audit.
The specialised fund created for investments in energy efficiency will be accessible
to a wide range of suppliers of energy efficiency improvement measures, ranging
from energy services companies to end users. The organisation and operation of the
fund is going to be further regulated by the Government.
The public sector
In order to ensure an efficient level of energy consumption in buildings (article 6 of
the Law), 3% of the overall surface area of the buildings owned and occupied by the
central public administration must be renovated annually in order to comply with
the minimum energy performance requirements provided by the legislation in force.
This measure might also be extended to the buildings owned by the local public
administration.

Contact
Daniele Icona
Attorney at Law
T: +40 21 319 67 90
E: t.geangos@schoenherr.eu

General measures
In order to achieve energy savings, measures shall be adopted between 1 January
2014 and 31 December 2020 with the aim of achieving annual savings of 1.5% of
the annual energy sales volume provided to consumers by all distributors or
suppliers of energy volume, calculated as an average for three years time prior to 1
January 2013.

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INFORMATION PURPOSES ONLY, ARE NOT INTENDED TO CONSTITUTE LEGAL OR OTHER PROFESSIONAL ADVICE, AND SHOULD NOT BE RELIED ON OR TREATED AS A
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ARISE FROM RELIANCE ON INFORMATION OR OPINIONS PUBLISHED IN THIS DOCUMENT.

For this purpose, the energy policy measures aim to:

(i)
(ii)
(iii)

(iv)

train energy auditors to carry out independent energy audits;

establish standards, rules and regulations for the application of energy
efficiency technologies;
support the development of ESCO-type energy companies (which
supply services and measures in order to improve energy efficiency
within the consumers premises/facility and which thus accept a degree
of financial risk, as the payment for the services supplied is based on
the improvement of energy efficiency and the ability to meet other
performance criteria agreed to by the parties);
create a specialised fund for investments in energy efficiency and
certain financing instruments or fiscal incentives in order to apply
energy efficiency techniques.

These measures will be implemented through national

programmes, the target of energy savings achieved pursuant to
2014-2015, 1.25% for 2016-2017, and 1.5% for 2018-2020,
base being the average annual consumption of energy in the
2013.

energy efficiency
them being 1% for
with the reference
3 years preceding

Penalties
As concerns the penalties applicable to business operators failing to comply with the
new legal provisions, substantial fines are expected to be applied, their amount
varying according to the operators annual fuel consumption and their committed
contravention. By way of example, business operators with an annual energy
consumption of more than 1,000 tonnes of oil equivalent who fail to perform an
energy audit every four years are subject to a fine ranging between 10,000 and
200,000 lei (ca. EUR 2,250 45,000).
Conclusions
The measures introduced in the energy efficiency sector have the role of stimulating
this sector and are likely to contribute to the emergence and development of new
entities and players with an increased specialization in providing energy efficiency
services.
One can also expect banks to develop an increased interest in offering certain
incentives and financial structures to players involved in this field. Consequently,
Law no. 121/2014 may be a good opportunity for investors in Romanias energy
sector, who have been in an extended period of stagnation.

THE INFORMATION IN THIS DOCUMENT IS INCLUDED WITH THE UNDERSTANDING AND AGREEMENT THAT SCHOENHERR IS NOT ENGAGED IN RENDERING LEGAL OR
OTHER PROFESSIONAL SERVICES BY POSTING SAID MATERIAL. THE INFORMATION AND OPINIONS CONTAINED IN THIS DOCUMENT ARE FOR GENERAL
INFORMATION PURPOSES ONLY, ARE NOT INTENDED TO CONSTITUTE LEGAL OR OTHER PROFESSIONAL ADVICE, AND SHOULD NOT BE RELIED ON OR TREATED AS A
SUBSTITUTE FOR SPECIFIC ADVICE RELEVANT TO PARTICULAR CIRCUMSTANCES. SCHOENHERR DOES NOT ACCEPT ANY RESPONSIBILITY FOR ANY LOSS WHICH MAY
ARISE FROM RELIANCE ON INFORMATION OR OPINIONS PUBLISHED IN THIS DOCUMENT.