Aspen Institute Romania, with the support of Adevarul Holding, organized the Bucharest Forum / Energy- Navigating Changing Currents: New Energy Policies and Business Trends in the Black Sea – Caspian region on May 23-24, 2013. Contributors and supporters included Maldon & Wat, the National Development Committee, GMF Black Sea Trust for Regional Cooperation and The Woodrow Wilson International Center for Scholars. The conference follows the highly successful Bucharest Economic Forum held in the fall of 2012: “Equity for Long Term Growth and Stability in Romania and the Danube and the Greater Black Sea Region – Is a New Silk Road possible?”.

Bucharest Forum / Energy builds on a series of events covering energy security, energy efficiency and green energy the Aspen Institute Romania developed within the framework of its Energy and Environment Policy Program.

Bucharest Forum / Energy’s mission is twofold: to serve as an influential debate and reflection platform for Romanian business sector and political decision-makers in the energy sector; and to create a trans-regional (linking the Caspian, Adriatic and Black Seas) strategy and policy review platform in the energy field (for anchoring the Western gate of the New Silk Road). This allows us to explore in an integrated way critical areas like the optimum energy mix and trans-regional interconnections, energy infrastructure investments etc. We aim for a lively, non-partisan and inclusive debate that will bring together relevant Romanian, European and regional actors (both from the public and the private sector) from the Balkans and the countries bordering the Black Sea and Caspian Sea. These will include energy experts, national and European regulators, government representatives, relevant corporation and businesses – either in the generation or distribution sector, large scale consumers, suppliers, investment companies, beneficiaries, equipment providers and developers, specialized European media, European Commission and Parliament representatives.

Bucharest Forum Energy / took place over two days and was a mix of conference and round table format conversations. Discussions covered a wide range of topics spanning from the future of energy sources exploration and production, trade, investment and cooperation at the Black Sea, the role of the new classics in the energy mix of Romania and the region, interconnections, physical but also legal and institutional, green economy and energy efficiency, management of the resources mix, local market trends and expectations in terms of the legal and regulatory framework for energy, corporate and public investments in the energy sector and realistic scenarios for the right energy mix for Romania.



Day 1 – Thursday, May 23


Mircea Geoană, President, The Aspen Institute Romania, Member of the Romanian Senate
Viorel Hrebenciuc, Vice President of the Romanian Chamber of Deputies

09:30-11:30 SESSION I: The Rationale for a Black Sea Energy Agenda – Plenary session
The narrow triangle between the Adriatic, the Caspian and the Back Sea is in many ways a key to the future of trade and economic security for Europe when it comes to its South East. For Bucharest Forum, this area, as well as the connection it creates between Europe, Central Asia and the Levant, is the central object of attention. In this logic, the Black Sea is the very hinge of the economic and political forces that shape the dynamics of the three seas triangle. From hard-core security issues to East -West relations and economic competition versus cooperation, all types of challenges converge here. When it comes to energy, again the Black Sea is a gateway, a solution provider but also a source of contentions and tough competition. An almost closed sea reputed for the fierce storms that haunt it (in particular during winter) and that appear very quickly and apparently from nowhere. Navigating its waters is the purpose if this opening panel of BF Energy. We will raise questions regarding the future of energy exploration, trade, investment and cooperation at the Black Sea. Some of the items on the agenda of the panelists are:

§ Exploration of Black Sea offshore energy resources; state of play and future development expectations; investment needs and opportunities; energy cooperation, business opportunities; environmental concerns
§ Certificates and standards
§ The Lugar Report on “Energy and Security from the Caspian to Europe”
§ The Black Sea as an energy transport and trade route: South Stream, Nabucco etc.
§ Energy markets around the Black Sea and plotting a course for a cooperative energy agenda

Mihnea Constantinescu, Ambassador-at-Large, Romanian Ministry of Foreign Affairs

Talgat Kaliyev, Charge d’Affairs of the Republic of Kazakhstan to Romania
Christian Dolezal, Head of Corporate Communications and Public Affairs, NABUCCO Gas Pipeline International GmbH
Edward Chow, Senior Fellow, Center for Strategic and International Studies
Neil Brown, Former senior adviser to Senator Lugar and co-author of the Lugar Report
Tudor Constantinescu, Principal Adviser, DG Energy, European Commission
Razvan Nicolescu, Director Public & Regulatory Affairs of Petrom, Vice Chairman of the Administrative Board of ACER
Vasile Iuga, Country Managing Partner, PWC, Romania
Gulmira Rzayeva, Leading Research Fellow at the Center for Strategic Studies under the President of Azerbaijan

11:30-11:45 COFFEE BREAK

11:45-12:45 SESSION II: The Known Unknowns: New Classics – Working session

Despite the downturn in the economic growth rates in the region and in particular in the EU, energy appears to be a long term and stable growth sector. There are many good reasons for this. From renewable sources and energy efficiency to fossil fuels, all sectors see investment and a rethinking of operational paradigms. Trade and investment patterns but also interlocking economic development, profitability and energy independence or energy security issues play a significant role. One area that has seen a very dynamic interest from investors, governments and regulators concerns the new classics. Shale, third and fourth stage gas and oil fields exploration are hot items for energy investors and energy technology companies. Among the proposed topics for discussion:

§ Shale gas exploration and use
§ Technology and technological challenges; Environmental concerns
§ Models for regulatory framework for various phases
§ Investment requirements and opportunities
§ The role of the new classics in the energy mix of Romania and the region
§ Pricing policies and impact on energy security and trade

Radu Dudău, Co-founder Romania Energy Center; Associate Professor, Bucharest University

Gheorghe Duţu, President, National Agency for Mineral Resources (ANRM)
Elena Dumitru, Secretary of State, Ministry of Environment and Climate Change (TBC)
Kristine Berzins, Independent Energy Consultant
Corneliu Condrea, Director, Ministry of Economy
Thomas Holst, Country Manager – Romania, Chevron Upstream Europe

11:45-12:45 SESSION III: More than Energy: a Continuum of Natural Resources – Working session

Energy is maybe the highest growth game in town but it is not the only one. Also, it is intimately linked to other natural resources that are or may be explored and exploited. The question of managing a resources mix becomes a very special area of policy making. This panel looks at some of the interactions and aims at exploring existing and future opportunities in the field. Energy is a factor in natural resources exploitation but it also offers synergies in investment, infrastructure development, etc.

§ Coal – is it still worth it? What’s the future?
§ Smart exploitation
§ Industrialization
§ Water management for energy production
§ The future of nuclear energy
§ What about the other resources?

Carmen Neagu, CEO, Sparta Matrix Energy

Iulian Iancu, Chairman of the Commission on Industry and Services of the Romanian Chamber of Deputies
Maricel Popa, Secretary of State, Ministry of Economy
Ştefan Hârşu, National Agency for Mineral Resources
Dante Stein, Special Adviser to the Prime Minister
Cristian Pârvan, Secretary General, Romanian Businessmen Association
John Webster, Partner – Assurance Leader, PwC Romania

12:45-13:00 COFFEE BREAK

13:00-14:30 SESSION IV: Mutual Benefits: Trans-regional Opportunities – Plenary session

The key to a cooperative energy agenda in South Eastern Europe is inevitably linked to trans-regional opportunities. These include a whole spectrum of undertakings, from cross-border electricity and gas interconnections that make a trans-European market for energy practical, if not necessarily easy, to long distance gas and oil pipelines and port and river terminals. Discussions will cover not only physical infrastructures but also legal and institutional ones. All these face economic, political and governance challenges. Besides a common vision, or at least a set of shared perspectives, there is the practical need for bilateral and multilateral agreements, joint projects and the competition and the jostling for rich but limited resources (both in terms of energy and investment capabilities) remain acute. We will cover some of the critical issues:

§ Interconnections – pipelines; the shift from long-term contracts to hub pricing; governmental agreements; compensations; stock exchanges; the Third Energy Package regarding interconnections and energy cooperation
§ State of play of energy cooperation in the region
§ Energy transport agreements between states
§ Intra-European compensation mechanisms
§ EU energy security policy

David Koranyi, Deputy Director, Atlantic Council Patriciu Eurasia Center

Constantin Niţă, Minister Delegate for Energy
Petar Stanojevic, Deputy Minister in the Sector of Oil and Gas, Ministry of Energy, Development and Environmental Protection, Republic of Serbia
Bogdan Chiriţoiu, President, Competition Council
Daniel Stein, Senior Advisor on Energy Resources, U.S. Department of State
Traian Halalai, President, EximBank SA
Ştefan Gheorghe, Executive Director General, Transelectrica (TBC)
Claudiu Sorin Dumbrăveanu, Vice President, Romanian National Energy Regulatory Authority (ANRE)

14:30 LUNCH

Day 2 – Friday, May 24

09:00-10:30 SESSION V: Green Economy, Energy Efficiency – Plenary session

Closing the first day, we will look at what are the main driving forces for competitiveness in the future European economy. Energy price and security of supply are certainly part of it, but equally so are the elements related to the EU framework for a green economy and emerging green energy technologies and solutions. The 20/20/20 targets the energy efficiency directive, as well as the entire green economy package of EU policies, which need to be considered together. Besides, there are challenges related to implementing costly schemes and using new technologies that have an impact on both managing greenhouse emissions and cost via energy efficiency and clean energy solutions. We are not only talking about energy generation but the entire ecosystem. For Europe and Romania, this offers a new technological revolution on a par with the impact of the digital economy. All these, however, have a price tag for companies, the government and the end user. Making the right policy choices in the framework of EU policies is not always easy. When, on top of everything, the Romanian economy needs to balance the reindustrialization and retooling of its economy and its workforce for a digital and globalized context, it is clear that decisions are becoming critical and their effect lasting.

§ Renewables, lessons learned and what next
§ European directives – Romania’s energy efficiency gap
§ Energy efficiency dimensions: technology, public policy
§ Green economy – investments in technology by businesses, competitiveness, cost, impact on employment
§ Smart grid and the electricity sector’s contribution to a green economy
§ Public authorities – transport, thermal insulation

Ion M. Ioniţă, Senior Editor, Adevărul

Rovana Plumb, Minister of Environment and Climate Change
Julian Popov, Minister of Environment and Water of Bulgaria
Emil Calotă, Vice President, Romanian National Energy Regulatory Authority (ANRE)
Tudor Constantinescu, Principal Adviser, DG Energy, European Commission
Diana Mangalagiu, Associate Professor, Smith School of Enterprise and Environment, University of Oxford
Michael Sipos, International Independent Expert Energy – Finance, Associated Expert – ENERO -Center for Promotion of Clean and Renewable Energy
Cristian Moisoiu, Researcher, The Institute of World Economy
Razvan Voinescu, Researcher, The Institute of World Economy
Manuela Unguru, Researcher, The Institute of World Economy

10:30-10:45 COFFEE BREAK

10:45-12:15 SESSION VI: How to Build the Ideal Legal and Regulatory Framework for Energy: Local Market Trends and Expectations – Working session

Public and private players in this sector are constantly balancing EU, regional and national frameworks for energy sector development and investment. Making the right choices creates opportunities for investment and, in the context of Romania, it could facilitate its role of regional energy gateway or hub. We will consider existing and new regulation and trends; the need for a new environment and economic legislation package for all types of exploration and extraction; royalties; state property regimes; market liberalization.

Vasile Iuga, Country Managing Partner, PWC, Romania

Titus Corlăţean, Romanian Minister of Foreign Affairs
Nicolae Havrileţ, President, Romanian National Energy Regulatory Authority (ANRE)
Daniel Chilea, Director, Industry and Energy Department, Competition Council
Dan Gheorghiu, Honorary Adviser on Energy to the Prime Minister, President, Institute for Studies and Power Engineering – ISPE
Luca D’Agnese, President & CEO, Enel Romania
Dana Dunel-Stancu, Head of Energy Practice, Biris Goran

12:15-12:30 COFFEE BREAK

12:30-14:00 SESSION VII: Financing Energy – Plenary session

This session is dedicated to the conditions and challenges to putting money behind ideas. Banking institutions IFO, national budgets and the EU as well as private and public corporations all have billions of euros scheduled for investment in this sector and in Romania’s region. What will make those businesses really profitable for both investors and developers, as well as the countries in the region, is a complex question. This panel is dedicated to addressing this question via the voice of those making investment decisions from corporate leaders in the energy but also banking sector, European Commission and EBRD, EIB representatives, to ministry officials.

§ Corporate investment in the electricity and oil and gas sector
§ Public investment in the energy sector; Financing efficient transformation of the transport sector
§ Investment in transportation rehabilitation
§ Developing the electricity grid
§ Large scale investment in energy infrastructure
§ Local schemes for energy efficiency
§ Certificates
§ Competition and regulatory issues
§ Legal and institutional stability for large scale investment

Valeriu Alexandru Binig, Director, Energy & Resources Leader, Deloitte

Varujan Vosganian, Romanian Minister of Economy
Adina Vălean, Member of the European Parliament
Grzegorz Konieczny, CEO Romania, Executive Vice President/Portfolio Manager, Franklin Templeton Investment Management Ltd UK Bucharest Branch
Louis Borgo, Senior Banker Power & Energy Department, EBRD
Lucian Bode, Member of the Romanian Parliamentary Delegation at the Parliamentary Assembly of the Black Sea Economic Cooperation
Adrian Ciurtin, Managing Partner, Ciurtin Brasoveanu & Partners
Narcisa Oprea, Member of the Board of Directors, the Bucharest Stock Exchange

14:00 LUNCH