Lungu, CEZ: No major projects set to start in 2010

For energy players the year 2010 will neither bring spectacular rises in consumption nor the start of major investment projects or a relaxation in funding, according to Ion Lungu, general manager of CEZ Trade, who has over thirty years’ experience in the energy sector.

Ion Lungu, who handles all energy deals within CEZ Romania, set up after the Czech utility group took over former Electrica Oltenia in 2005, believes one of the most important things that need to be done this year on the energy market is to implement the decisions that were announced, and then put off for several years.

“2009 was affected by the decline in energy consumption, with no major investments being conducted in the sector. Although there was so much talk about restructuring by setting up two energy companies, nothing has been done. Energy trade still lacks transparency. I wouldn’t say last year was the most difficult of the last ten, because the energy sector was safe, but it was definitely a difficult year due to the lack of funds and of strategy,” specified Lungu, who is also chairman of the Association of Energy Suppliers in Romania (AFEER). ZF

Last year the Ministry of Economy initiated a new strategy to restructure the energy generation system by creating two national energy companies, and abandoning a plan debated for almost two years, which targeted the setting up of a so-called “national champion”. Although the companies were supposed to be ready by the end of last year, the break-up of the ruling coalition and the presidential elections saw the project put off, prolonging the state of uncertainty surrounding the reorganisation of Romania’s biggest energy companies.

Lungu does not believe any major energy generation project will be started this year, although CEZ and state-held Termoelectrica are involved in a 400 MW-project worth 400 million euros in Galati.