Renewable Energy Powers Romania with Revenue Surge in 2022

A recent report on the renewable energy sector in Romania, prepared by SeeNext, the business intelligence and news provider, sheds light on the industry’s performance and trends in 2022. The report, which analysed data from 633 Romanian companies, reveals that the industry’s revenue skyrocketed nearly 70% and is poised for new heights. The edition includes an in-depth financial analysis, a comprehensive overview of changes in the regulatory framework, information on the key investments and acquisitions and a special feature material focused on Romania’s energy storage prospects.

Electricity prices fuel revenue growth

Romania’s renewable energy industry saw a significant jump of 69.3% y/y in aggregate operating revenue in 2022, reaching EUR 9.6 bln. Rising electricity prices coupled with an increasing push towards green energy created a favourable environment for renewable energy companies.

New spike in number of companies on the horizon?

After a slump in the number of newly established companies in 2020, there has been a pick-up in 2021 and 2022 on the back of Romania’s Integrated National Energy and Climate Plan (INECP) and a new target for a 30.7% renewables share in the overall energy consumption in 2030. In the 2021-2022 period, the prosumer segment was also boosted by a refreshed piece of legislation facilitating quicker access to the grid and financial incentives through tax exemptions.

Appetite from foreign investors

While the majority of Romania’s renewable energy sector is controlled by local shareholders, foreign investors play an outsized role when compared to other countries in the region – about 38% of the entities included in the analysis were owned by foreign investors from 39 different countries. Italy led foreign investment in Romania’s renewables sector, with 43 entities or a robust 17.8% of foreign-owned companies originating from the Mediterranean nation.

Sustainability comes at a cost…

In 2022, material costs of the Romanian renewables industry surged nearly 80% due to supply chain disruptions. Labour, amortisation and depreciation costs also witness substantial increases.

…but it still offers golden opportunities for profitability

The sector recorded an impressive 20.9% net profit margin in 2022. The bottom line for the year more than doubled to EUR 2 bln.

The findings in this comprehensive report serve as a useful resource for industry stakeholders, policymakers, and investors seeking to understand and capitalise on the opportunities in the Romanian renewables market.

Download the report here to find more insights.