Armand Domuta, Restart Energy: The transition to green energy plays a pivotal role in reshaping the industrial landscape in Romania

In another discussion for the “Industries to Watch in 2024” feature, the cover story in the February edition of Business Review Magazine, we had the privilege of engaging with Armand Domuta, the CEO of Restart Energy. Delving into the dynamic realm of renewable energy and innovation, Armand shares profound insights into the current landscape, strategic endeavors, and the forward-looking vision of Restart Energy in the market. This exclusive interview delves into the trends, challenges, and groundbreaking strategies that define the renewable energy sector in 2024, providing an intimate look into the leadership and pioneering perspectives propelling Restart Energy into the forefront of sustainable solutions.

We believe that this specific context serves as a catalyst for investments in sustainable energy. The regional conflict, particularly the Russo-Ukrainian conflict and its consequences, has led to an inflationary surge in energy prices. Industries with high energy consumption, including alumiium, steel, paper, and the chemical industry have reduced their usage in response to high prices this is the reason why a drop in energy consumption has been recorded in 2022 and 2023. Most players in the commercial and industrial sectors have recognized the importance of price predictability offered by solar energy, realizing that they can reduce up to 70% of their bills by utilizing renewable energy. We anticipate an acceleration the current upward trend of this transition towards green energy will continue and will maintain momentum for the next 6 to 8 quarters. Currently, Romania is at 38.7% of its target to be achieved by 2023, benefiting from a suitable climate and investors are encouraged through access to European funds through various legal entities.

To what extent does the transition to green energy influence the overall industry, and how does it influence it?

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The transition to green energy, particularly in the solar sector, plays a pivotal role in reshaping the industrial landscape in Romania. As a major player in the Romanian market dedicated to solar energy, we observe a significant impact on industries across the board. The shift towards green energy has not only brought about a positive environmental change but has also introduced a paradigm shift in how industries operate. Industries in Romania, across various sectors, are increasingly recognizing the importance of sustainability and environmental responsibility. The adoption of solar energy has not only reduced the carbon footprint but has also proven to be a strategic decision in terms of cost-efficiency. Many companies, including ours, have witnessed a substantial reduction in energy costs, contributing to improved economic sustainability.Furthermore, the transition to green energy aligns with global trends and regulatory initiatives, opening up new avenues for businesses to participate in the green economy. With an emphasis on clean and renewable energy sources, companies investing in solar power are well-positioned to meet both current and future energy needs while adhering to environmental standards. The transition to green energy is not just a necessity for environmental preservation but a strategic move that positively influences the overall industry in Romania. It fosters a sustainable and responsible business environment, positioning companies at the forefront of innovation and competitiveness in the evolving energy landscape. Another very important factor that comes into play is the investment one, as the Romanian companies seek to attract more foreign investment and as the average investment ticket is going up, the local businesses must prove their sustainable pedigree as well as present convincing strategies for transitioning towards green energy to be investable”. The “green lense” is very present in the board rooms and investment committees of almost all the relevant institutional investment players and it will remain there for the foreseeable future.

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

The emphasis on sustainable practices and green energy presents a significant opportunity for the energy sector. The growing demand for clean energy solutions positions companies at the forefront of a burgeoning market.

Ongoing and future government initiatives supporting renewable energy projects, like RePower Eu, the Romanian National Plan for Energy Development in Romania, coupled with the availability of European funds through PNNR, AFM or other entities, create favorable conditions for investment and project development.

Rapid advancements in technology, especially in the solar energy sector, provide opportunities for innovation and efficiency improvements, allowing companies to stay competitive and meet evolving consumer expectations. This year we think we will have a focus on energy storage solutions and Utility scale projects.

Collaborations and partnerships with international entities can open new avenues for investment, technology transfer, and market expansion.

In terms of challenges, continued geopolitical uncertainties may impact the stability of the energy market, affecting investment decisions and overall industry performance. Frequent changes in regulations and policies and fiscal terms can pose challenges for businesses, requiring them to adapt quickly to comply with evolving standards.

The need for continued investment in energy infrastructure, including grid enhancements, to support the integration of renewable energy sources remains a challenge.

As the industry evolves, increased competition may intensify, requiring companies to differentiate themselves through innovation, efficiency, and sustainable practices.

Navigating these opportunities and challenges will be crucial for the energy sector in Romania in 2024. Proactive adaptation to market dynamics and a strategic focus on sustainability will position companies for success in a rapidly changing landscape.