Two problems of wind power paradise: Legislation is a fiasco and the network too small
The main two hurdles facing investors that tapped into the wind power energy segment in Romania are legislation, which, after more than two yeas, still cannot be enforced, and the rather low capacity of the transmission network, which makes it difficult to integrate the new facilities into the grid.
Whilst in the case of the network, the problems could be resolved, at least in theory, through significant investments, things are more delicate when it comes to legislation. This unpredictability leads to reluctance from banks, which are not very open when it comes to lending, anyway.
"I am not very proud of Law 220/2008 (promoting energy from renewable sources). This is a big fiasco for the Romanian authorities, which have yet to learn how Brussels works. We first had to get the approval of the European Commission for this law and then promulgate it, but things happened the other way round here. A normal European country doesn't do things this way," says Bogdan ChiriĊ£oiu, chairman of the Competition Council.