Andrei Dinescu, Greenvolt Next Romania: Investments in energy will continue, but will focus on renewable energy

In an exclusive dialogue for Business Review Magazine’s “Industries to watch in 2024“, Andrei Dinescu of Greenvolt Next Romania unveils the shifting paradigms within Romania’s energy sector amidst the prevailing geopolitical and economic uncertainties. Dinescu delves into the intricacies of transitioning to renewable energy sources, the strategic deployment of power purchase agreements (PPAs), and Greenvolt’s pioneering role in mitigating the challenges posed by rising inflation and raw material costs. The conversation also explores the impact of the European Parliament’s Directive 2023/2413 on the energy industry, highlighting opportunities for innovation and the critical importance of adopting green technologies to secure a sustainable future.

How do you think the energy sector in Romania will evolve in 2024, given that geopolitical uncertainties continue and inflation is on the rise (at least in the first part of the year)? Will investments continue, will prices remain stable?

The energy sector in Romania faces a number of challenges in 2024, including geopolitical uncertainties, rising inflation, and the need to accelerate the transition to green energy.

In terms of geopolitical uncertainties, the war in Ukraine has had a significant impact on the global energy market. Russia is a major supplier of energy to Europe, and the war has led to rising energy prices. This has led to rising inflation in Romania, which reached 14.5% in January 2024.

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Greenvolt Next Romania offers a safe and stable solution for companies looking to reduce their reliance on conventional energy sources. Our company has a diversified portfolio of renewable energy projects, moreover the new business model of power purchase agreement (PPA) special designed for Medium and small industries/businesses will allow us to offer energy at competitive prices, regardless of market conditions.

Rising inflation is also a challenge for the energy sector. Energy investments are often costly, and inflation can make them less accessible. In addition, inflation can lead to rising operating costs for energy companies, which can lead to rising energy prices for consumers.

In terms of rising inflation, Greenvolt Next Romania offers a way to protect against rising energy prices.

By signing a power purchase agreement (PPA), companies not only will get the solar plant without any investment from the business, but also will secure a fixed price for energy for a predetermined period of time.

As a bonus, during the contractual period, all the maintenance and risk related costs are covered by our company.

At the end of the contract period, the solar installation becomes property of the customer, who will enjoy all the savings generated by the project. This tremendously  can help companies save money (which will be redirected solely to their core business), reduce their energy costs, improve their profitability and  in the same time contribute to fighting climate change and to promote a more balanced and sustainable world on an environmental, social and economic level.

Greenvolt Group has a Pan European presence in 9 countries with 3 Business lines in Renewables (Biomass, Utility, Distributed Generation), in Romania we are present with Greenvolt Next and Greenvolt Power which activate in the Distributed Generation.

The transition to green energy is a challenge, but also an opportunity for the energy sector in Romania. This country has significant potential for renewable energy, and the transition to this source of energy can create new jobs and promote economic development.

Despite the challenges, I believe that the energy sector in Romania will continue to grow in 2024. Investments in energy will continue, but will focus on renewable energy. Energy prices will remain volatile, but will tend to rise on average.

How much does the transition to green energy influence, and how does it influence, the industry as a whole?

The transition to green energy has a significant impact on the industry as a whole. This is because the transition requires significant investments in new technologies and infrastructure.

The transition to green energy has a positive impact on the industry in the following ways:

The transition to green energy also has a negative impact on the industry in the following ways:

In general, the transition to green energy is a positive opportunity for the energy industry. However, it is important to manage the negative impact of the transition to protect the interests of all stakeholders.

What are the main opportunities and challenges for the energy sector in 2024?

The main opportunities for the energy sector in 2024 include: significant investments in renewable energy , growing demand for energy from renewable sources, promoting economic development and, very important, job creation.

Additionally, on 31st of October last year, the Directive 2023/2413 of the European Parliament and Council from 18 October 2023, which aims to promote renewable energy, (also known as RED III Directive) was published.

The key focus of the new Directive is to boost the proportion of energy derived from renewable sources in the overall energy consumption of the Union, aiming for a minimum of 42.5% by 2030. The Directive conveys the collective effort of Member States to elevate the share of renewable energy in the Union’s gross final energy consumption to 45% by 2030. Furthermore, the Directive mandates that a minimum of 5% of the newly installed capacity should be derived from innovative technologies – which can be viewed as an opportunity but also as a challenge for developing countries like Romania.

Upon the adoption of the Directive by the European Council, the discussions took place regarding the implementation of measures imposed by the new legislative act across the sectors of transportation, industry (which is very important for Greenvolt Next Romania as this is our customer niche), buildings, and centralized heating and cooling.

For the industry, the directive specifies an annual increase of 1.6% in the consumption of energy from renewable sources. The buildings, heating, and cooling systems sector has new rules imposing a share of at least 49% of energy from renewable sources in buildings by 2030.

The main challenges for the energy sector in 2024 include: of course, geopolitical uncertainties, as we just mentioned, rising inflation and for our country the rate of adoption and penetration.

In conclusion, the energy sector in Romania faces a number of challenges in 2024. However, I believe that the sector will continue to grow, thanks to the opportunities created by the transition to green energy.