A Coface report on solar power in Europe notes that last decade’s boom was followed by a period in which investments in this domain “froze.” “The decline in the solar power domain was just as sudden as the rise. The bubble that burst in 2011 was preceded by the interruption of national and European subsidies as a result of the growth in the number of speculative projects, followed by a price war over modules. Successive economic crises weakened companies, which registered slumps. As a result, the insolvencies filed by companies in this sector reached the apex in Europe from 2011 to 2012. In France for instance they almost tripled,” the Coface report reads.
As a result, the amortization of capital expenditure costs became a heavy burden because the earnings of “traditional” players dropped. This surplus, as well as the lack of interconnections between European countries transformed the renewable energy sector into a less attractive one.
In this context, Romania registered considerable progress from the point of view of the renewable energy’s share in the end consumption of energy at national level. According to Eurostat data, in 2013 that share grew to 24 per cent, 50 per cent higher than it was 10 years ago and a level that surpasses the EU-28 average (15 per cent). Nevertheless, Romania lags far behind countries such as Sweden and Norway, the only ones registering a share of over 50 per cent.
In January-August this year, the local production of energy in wind farms stood at 4,728.8 million KWh, up by 1,783 million KWh year-on-year, while the energy produced in solar farms stood at 1,510.2 million KWh, up by 536.7 million KWh year-on-year.