Romania Clean Energy to Run Smart Irrigation for Water and Agribusiness
Romania has set a target for clean energy consumption to account for 30.7% of the country’s energy use mix by 2030. The Ministry of Energy will update the National Integrated Plan for Energy and Climate Change to harmonize with EC recommendations from RePower EU program, and thus the 30.7% target will most probably be raised to 34%. Until 2024, the Ministry intends to install capacities of 950 MW.
The clean energy sector in Romania is comprised, in rank order, of wind (2,673 MW - 28.55% of the energy mix), hydro (2,247 MW – 24.05%), nuclear (1,369 MW – 14.65%), solar (226 MW – 2.41%), and biomass (66 MW, 0.71%); with solar, wind and biomass comprise 31.67% of a total of 9364 MW production.
There is a large national network of irrigation canals in Romania, which has fallen into disrepair. At present, less than 20% of the 6,200-mile irrigation canal infrastructure is being utilized, irrigating less than 10% of Romania’s arable land.
Romania has traditionally been a leading agricultural producer in the European Union (EU) of wheat, corn, sunflowers, and soybeans. However, sustained drought and diminishing productivity rates, combined with aging and insufficient energy and water infrastructure have lessened the country’s standing as a net exporter. This signals opportunity for U.S. suppliers of innovative clean energy to run smart irrigation for water and agri-food security in Romania.
RePower EU Program
On May 18, 2022, in response to the hardships and global energy market disruption caused by Russia’s invasion of Ukraine, the European Commission presented the REPower EU Plan for saving energy, producing clean energy, and diversifying energy supplies. It is backed by financial and legal measures to build the new energy infrastructure and system that Europe needs. The new geopolitical and energy market realities require drastic acceleration of clean energy transition and the rapid increase of Europe’s energy independence from unreliable suppliers and volatile fossil fuels. RePower EU is the European Commission’s diversification plan to make Europe independent from Russian fossil fuels well before 2030.
Romania plans to implement a pilot project for irrigation infrastructure, the investment amounting to EUR 1.8 billion for a 1,700-kilometer length of irrigation canals, according to public statement in October 2022 by the Minister of Investments and European Projects. He further emphasized that work must be done on the project and that details must be further discussed with the Commission services that serve the National Recovery and Resilience Plan (PNRR) In this way, all details regarding the operationalization of these infrastructures can be finalized and included in the REPower EU chapter intended in its entirety to the production, transport, and distribution of green energy so as to increase Romania’s energy autonomy and independence.
Best Industry Prospects for U.S. Suppliers
U.S. manufacturers of clean integrated energy technologies, efficient irrigation water management solutions and high-precision agricultural equipment will find strong demand in the Romanian market, though through a limited, yet growing, number of buyers. Small and medium size farms with more than 250 acres, make up a very small proportion of Romania’s farms. However, large commercial farms (including EU’s largest farm: Braila Great Island of around 135,000 acres) are investing to increase productivity. They have also become more adept at using financing from EU’s Rural Development Funds and U.S. ExIm Bank’s financing tools.
New tenders present a clear opportunity for U.S. suppliers of technologies such as pumping stations and irrigation systems utilizing clean energy. Also, smart water management technologies that support digital irrigation, software sensors and other technologies such as water monitoring, usage, conservation, filtration, purification, and de-salination show promise.
Reductions in energy consumption are critical to the sustainability of the Romanian economy. For agriculture, decreases to the carbon footprint for irrigation can be achieved through the import of innovative U.S. solar panels and wind turbine technologies to pump irrigation water to crops and to support clean energy and smart water initiatives. Such efforts would enable Romania to reach the EU Green Energy Deal’s emissions reduction targets by 2030.
Romania’s Strategic Goal to Achieve Water and Food Security in the Black Sea Region
Romanian Agriculture Ministry’s 2020-2030 Agri-Food Development Strategy SWOT Analysis has a Strategic Goal to limit carbon footprints of agriculture, promote an organic and climate change resilience agriculture based on smart irrigation management, and clean energy technologies for water and agri-food security in the region.
Improved access to smart irrigation water run by clean energy and agri-finance solutions are promising opportunities for farms to survive the soil erosion and desertification risks. U.S. exporters of solar and wind farming technologies will benefit as well as irrigation water installations, agricultural machinery, and agri-food processing equipment to develop the agricultural sector in Romania and the greaterthe Black Sea Region.
Trade Event Opportunities for U.S. Companies in Romania
- May 25– 28, 2023: Expo AgriPlanta – RomAgroTec: Open-Air Exhibition, Trial Fields & Machinery Demonstration, Fundulea, Calarasi County, www.agriplanta.ro
- October 25–29, 2023: INDAGRA - International Trade Fair of Equipment and Products in Agriculture, Horticulture, Viticulture & Animal Husbandry, Bucharest, www.indagra.ro/en
U.S. Commercial Service Romania Contacts
- Commercial Specialist Mihaela.Dodoiu@trade.gov
- Commercial Specialist Gabriel.Popescu@trade.gov