??The Energy Report: Trends, Policies & Industry Reactions
From government restructuring to new financing mechanisms and European energy security debates, here are the key developments from the past week. ??
??? Energy Ministry Reorganization: Job Cuts and Digitalization
The Romanian Ministry of Energy has announced a restructuring plan aimed at increasing efficiency and reducing public spending. The proposal, currently under public consultation, seeks to cut salary expenses by 25% by eliminating 35% of management positions and streamlining operations through digitalization. ????
Energy Minister Sebastian Burduja emphasized that the changes will improve workflow efficiency while reducing unnecessary bureaucracy. One key aspect of the reform is the transition from paper-based processes to fully digital procedures, which is expected to save 100,000 lei annually in operational costs. ??
While acknowledging concerns over job security, Burduja assured that high-performing employees will retain their roles and may take on additional responsibilities. The reorganization is set to be finalized by the end of March, pending procedural approvals and potential legal challenges. Burduja hopes this initiative will serve as a model for other public institutions. ???
?? New Financing Rules for NRRP and Modernization Fund Projects
The Romanian Ministry of Energy has introduced amendments to Emergency Ordinance No. 5/2025, enabling beneficiaries of NRRP (National Recovery and Resilience Plan) and Modernization Fund projects to secure co-financing through financial guarantees and mortgages on funded assets. ?????
Although this provision was not included in the initial public consultation draft, it was later incorporated before the ordinance was officially published. The amendment aims to prevent project delays and cancellations by ensuring easier access to necessary financing mechanisms. ????
Minister Burduja emphasized that this adjustment is a direct response to investor concerns and will help drive Romania’s energy transition. Notably, the ordinance impacts all NRRP components, particularly C6 – Energy and C16 – REPowerEU, which focus on renewable energy investments. ???
Companies benefiting from these financing options are required to submit copies of their loan and mortgage agreements to the Ministry of Energy within 10 working days of signing, and for existing contracts, by March 31, 2025. Additionally, the Ministry has repealed Order No. 1803/2024, which previously governed financial guarantees for energy projects. ????
???? EU Member States Reject Proposal to Extend Gas Storage Rules
At the European level, a significant policy debate is unfolding regarding gas storage regulations. The European Commission recently proposed extending the current Gas Storage Regulation until the end of 2027, citing geopolitical risks and energy market volatility as key reasons for maintaining the 90% storage target by November 1 each year. ???
Energy Commissioner Dan J?rgensen highlighted that existing gas storage requirements have helped shield the EU from major disruptions. However, the proposal was met with resistance from several EU member states, including Germany and the Netherlands, who argued that the rigid targets contribute to higher gas prices and impose additional costs on countries with large storage capacities. ????
As a result, the proposal was rejected, and negotiations will now continue between the European Parliament and the EU Council. Member states may propose amendments to introduce greater flexibility, and Brussels is expected to assess a potential permanent framework for EU energy security in the coming months. ????
?? Looking Ahead: What’s Next for the Energy Sector?
?? Final approval of the Energy Ministry’s reorganization plan by the end of March. ?? Implementation of new financing mechanisms for NRRP and Modernization Fund beneficiaries. ?? Continued EU negotiations on long-term gas storage policies.
Romania’s energy sector is evolving rapidly, with significant regulatory changes shaping the future of investments and operational frameworks. As these developments unfold, businesses, policymakers, and investors must stay informed and proactive to navigate the shifting landscape effectively. ????
?? How do you see these changes impacting the energy sector? Join the conversation in the comments below! ??