The French Group Veolia plays a major role in the energy and water supply sector in Romania offering innovative solutions for water, sewerage and energy management. Operating since 1992, Veolia Energie Romania became the largest private producer and supplier of energy services, providing heat production, distribution and supply for heating systems and energy management agreements for buildings and industrial operators.
The company cooperates with the local government institutions offering innovative and economical solutions for efficient local buildings and services. It also provides operation, design, engineering, and maintenance services for industrial customers, enabling energy efficiency. Veolia Energie Romania operates the public heat distribution networks in the cities of Iasi, Ploiesti and Otopeni, supplying heat and hot water for more than 90.000 apartments and providing service for over 300.000 inhabitants.
Frederic Faroche is welcoming cooperation with industrial organizations. “When you are industrial, you have a core business which is already complicated. Water, waste and energy are the main businesses for us and we simplify our clients’ life in this regard. We can offer a contract based on commitment and results, savings, efficiency and performance in general. If the project makes sense we can also invest together with the client” he concludes.
Bucharest District Heating in Need of Reform
Romania recently introduced an energy efficiency law along with other financial incentives for cogeneration, driving the country to adopt more energy efficiency practices. Together with other Central European countries, Romania is increasingly looking to modernize the old, less-efficient district heating system in order to reduce emissions related to energy production. The current losses in the district heating networks, due to the age of the pipes are approximately 26%, which is much higher than the normal 10 to 12% rate.
The current operator of the public heat supply in Bucharest is providing 72% of the heat of the capital, with 95% of consumers being households and the rest public institutions and businesses. The state owned company has officially entered into insolvency, highlighting the need for reforms in the sector.
Frederic Faroche emphasizes “The capital city is supposed to be the strongest of all, and it happens to be the weakest. This sector needs a reform”. He adds, “Clients are interested in individual approach in heating, so we developed a solution for replacement of the old collective system into an individual one. This can be supported by lots of financial instruments available for the sector, such as EU and local funds. Tools are there, they just need to be put into work.”
Even though the energy sector of Romania needs to be reformed, Frederic Faroche believes it offers opportunities. He concludes, “Unlike its neighbours, Romania has no dependency related to the supply of gas or fuel which is an important asset for the country. The annual growth of the GDP is 3-4%, the country is fulfilling EU requirements of the sector and it’s the second largest market in Eastern Europe“.