Energy Poverty is surely a thing of the past, at least in Europe, right?

Spoiler alert – Wrong! Energy poverty is one of the most serious challenges of modern societies. According to the International Energy Agency, it is estimated that a population of between 1.3 and 1.6 billion people on the planet live under energy poverty conditions, with multiple effects on an individual level, and to society overall.

In Europe as well, this phenomenon is relevant, on a larger scale than one might expect and even in advanced economies. According to a study conducted by the Buildings Performance Institute Europe - BPIE, the number of energy poor citizens in Europe ranges between 50 and 125 million. 54 million Europeans are unable to keep their home adequately warm! The European Commission states that while many EU countries do have measures in place to protect vulnerable people, nearly 11% of the EU's population is in a situation where their households are not able to adequately heat their homes at an affordable cost.

Energy poverty in Romania

Romania also faces the effects of energy poverty. If the indicators most commonly used in Europe were to be applied in Romania, the number of Romanians considered in energy poverty would be up to 19%, while the heating benefits supported by the central budget presently cover less than 5% of the population, according to the Center for the Study of Democracy, “Energy poverty and the vulnerable consumer”, Records in Romania and Europe.

In the ongoing global transition towards clean and affordable energy, Romania has the chance to become a front-runner, implementing the latest digital technologies, deploying more renewable capacity and electrifying the transport and heating sectors.

However, in the energy transition, no one should be left behind, therefore, energy poverty needs to be addressed as a priority, being a crucial condition for attracting investments and the further development of the market. Romania will need to mobilize €22 billion in investments into the energy sector in order to reach the goals of the National Integrated Energy and Climate Plan such as new low carbon generation plants, extending and strengthening grids or greater interconnection with neighboring countries. This energy transition demands massive private investments and, at the same time, systematic cooperation between the Private Sector and the Romanian authorities, to create and adopt protection mechanisms for the most vulnerable energy consumers.  

Hence, energy poverty is a crucial problem, which demands strategic synergy between both sides in order to succeed the necessary Romanian transition to a new energy era.

This strong synergy needs to be based on specific pillars. First of all, we have to set a clear operational definition of vulnerable consumers or consumers experiencing energy poverty in need of special protection. Secondly, we have to implement social protection measures based on improved existing policies (e.g. the heating aid). The allocation of more funds and the use of European Structural and Cohesion Funds are also crucial. These funds will be directed to programs able to improve energy efficiency, with priority to households experiencing energy poverty. These will also be directed to legally connect to the grid households that cannot afford or lack the necessary documents to become legitimate consumers, and to promote policies that prevent disconnection for vulnerable consumers.

In other words, synergy is the key!!