Article published on www.investenergy.ro

 

The energy market before, during and after the pandemic. How do you see / feel the energy sector / energy market in this period when a state of emergency is declared in Romania? But after the pandemic?

 

Prior to this health crisis, the energy market was already in a difficult time trying to recover from the impact of GEO 114/2018. At the beginning of the year, many players started optimistically on the road, with well-developed strategies, but were again faced with a complicated situation that forced them to start again. During the state of emergency, priorities were changed and other objectives set, the most important things being the protection of employees, customers and involvement in the fight against the virus with all possible resources. I am glad that many companies have joined in this joint action, shown unprecedented solidarity and thought first of combating the effects of the epidemic and then of the economy.

 

On the other hand, we already see some of the consequences of the pandemic on the local energy market – the decrease or freezing of the activities of some suppliers, the decrease of production and consumption, the decrease of investments – that we will feel in the post-pandemic stage. Here I foresee an extremely difficult period for producers, transporters, but also energy distributors, who will be forced to adjust both their costs and investment plans, and suppliers, to rethink their business models, to review budgets and identify new development opportunities.

 

Post-pandemic, we will have to adapt our energy market to much greater flexibility, including by adopting the latest European regulations in the field and urgently amending the energy law 123.

 

Have you identified any problems / malfunctions during this period? What are the risks and how can they be avoided?

 

At the moment, I believe that there is a lack of communication between the government and the business environment related to concrete measures to support companies, and this causes uncertainty and unpredictability which is further reflected in decision-making.

 

What are you worried about right now?

 

The fact that a deep crisis awaits us, not only economic but maybe even a social one, in which many people will lose confidence in the future. We will live in uncertain times again, but I am convinced that if we fight together we will be able to get through this period as well.

 

What do you recommend market players to be able to overcome this period well and how to prepare for what is to come? What should they not do?

 

Leadership is the obligatory shield with which to move forward during this period because people need strong leaders to follow, who make firm decisions, protect them, direct them and encourage them. I believe that leaders need to take steps that could make business more flexible, redesign the business, analyze and see where it can be changed so that the company is prepared to deal with a period that is expected to be long-lasting, full of economic difficulties. Next, we will have to understand that we are just inhabitants of this planet along with other life forms and that we will have to rely only on what made us so strong: love and solidarity!

 

Changes are needed in companies’ strategies, in public administrations… Your opinion

 

Any crisis situation brings with it the need to review strategies to counteract its effects, to restart business and to identify new beneficial opportunities for companies, people and society in general.

 

How important is digitization and at what level should it be implemented?

 

A valuable lesson this pandemic has taught us is the importance of automation and digitization. Let’s imagine what it would be like if our national energy system had SCADA solutions, Asset Management solutions, smart grids and smart metering in all this crisis! We had the opportunity in the mid-‘90s to be among the first to bring automation solutions to the industry, with a new SCADA solutions department in Adrem Invest, a department that later developed into an independent company: Adrem Engineering. All these tools would have provided a wonderful support for continuing activities without being physically in the field, thus eliminating direct contact with customers, while respecting the rules of social distance. In my opinion, after this crisis is over, the state should learn a series of lessons and support investment projects, continue to digitize the national energy system and provide the necessary funding, so that the next crisis that will hit – no if he does, but when – he will not find us in such a vulnerable place.

 

Within the Romanian Energy Center we have prepared a series of measures for the energy sector that we will submit to government institutions that include ANRE’s support for the digitalization of the energy system (through smart grids and smart metering technologies) and relaunching investments in energy infrastructure, such as expanding the gas network.

 

Is the strategy changing at Adrem after the crisis?

 

During this period we will review the Adrem strategy so as to reduce as much as possible the effects of the health crisis on our people and the company. Next, the main priority will remain the protection of employees, customers and their families, we will align the business plans with those of the partners, we will adapt the services we offer to the new economic context and we will look for new development opportunities.

 

Have you prepared a plan to return to work? If so, what does it consist of?

 

In the next period, we will continue to focus on keeping our employees and customers safe and healthy; the danger will not disappear after May 15 when the state of emergency will be lifted. In the short term, we are working on a gradual return plan to our workspaces and a list of measures aimed at carrying out activities, new office rules, as well as tools that will support our work after May 15, both at the office, as well as in the field. In terms of business, we are working on a recovery plan that is in line with the new economic and social realities shaped by the pandemic, we need to be flexible, adapt and secure our business. Now comes our true resilience test. I also think it is a time for modesty, when we should all do an introspection. In the past, we have taken the gifts of the Earth, but nature shows us with full force what it can do. We are not untouchable and we are not above.

 

What steps should the authorities take to stabilize the market and recover the companies?

 

Providing subsidized and state-guaranteed loans to ensure the cash flow of affected companies plus taking over the costs for technical unemployment that is already happening and which I consider a good idea. Regarding the energy industry, I believe that the government will have to support the relaunch of investments, with investments in state-supported energy infrastructure, in order to bring workers back and strengthen activity in the energy system. It is time for big infrastructure projects – strategic projects that may not have met the short-term recovery criteria and are now needed to restart the economy.

 

Another measure is the support mainly by ANRE of investments aimed at computerization and digitization of the energy system. Together with several associations, we have developed a series of measures that we will propose to the government and that we consider necessary to maintain the balance in the national energy system.

 

Opportunities after the crisis?

 

From this crisis, we learned that we must first win, then learn and correct what we did not do well before. The opportunities I see in the future are related to “work from home” which will become “remote work” and will fundamentally change the way we work in the future (from home, from the sea, from another country, etc.). I also believe that the dawn of another type of employment relationship between companies and people is beginning and that we will gradually move away from the classic employment contract and employment with a single company. This will bring with it a number of new opportunities such as development in which we will learn to better organize, be more efficient, more productive and better managers – to prioritize and manage time better for our benefit. I also believe that vigilance is another quality that people should develop in view of the unpredictable situations to which we will be increasingly exposed in order to be able to take quick, lucid and panic-free preventive measures.

 

Another opportunity I see is the rethinking of certain organizational structures in the sense of outsourcing activities, as we experienced after the crisis of 2008, but also an increased focus on what the flexibility and agility of a business really means.

 

What investments are now required as urgent? What projects can be done / completed this year?

 

It is time to design major investments and the role of states will increase in providing the framework for them. A rethinking of supply and production chains to reduce dependence on Asia could also create investment opportunities. But the current year and maybe part of the next one will be dedicated to the reconstruction of the economy and the value chains that are breaking at the moment. It is time for Romania in the effort of reconstruction and recovery to rethink its production structure and increase its flexibility, networks and even consumption.

 

What is the right and functional energy mix for Romania?

 

Romania is a rich country in terms of energy resources, so I think the right energy mix includes all forms of energy. And with an intelligent energy mix, such as nuclear energy and renewable sources (hydro, solar, wind, biomass, etc.) I believe that our country could assert itself as a provider of energy security in the area and in this regard to negotiate a favorable position in the context of the Energy Union. The regional use of our hydropower capacity in ensuring stability and adjustment can be the best example of this.

 

Are you optimistic about the future of energy in Romania? On whom and what exactly does the success of the energy transition depend?

 

I am grateful that we still have the chance to learn and rebuild by eliminating mistakes. The chance to come back with a more efficient and pragmatic way of reviewing future plans through relevant investments in technology, such as digitization, the exploitation of our country’s energy resources and the creation of a predictable legislative framework by the competent authorities. The success of the energy transition depends on our ability to understand the mistakes we have made and to take a course in correcting them.

 

How prepared is Romania for the challenges of the future? Are we in the right direction? What are we missing?

 

Unfortunately, Romania is not as well prepared for the challenges of the future as it should be! That is why we urgently need a new vision and a strategy adapted to it. This requires leadership, which is exactly what we have lacked in recent years. It is not well prepared because we have a weak and underfunded education system, because extremely important resources have chosen the path of exile and produce today for other states, because we have failed to replace the typical Byzantine clientele and arrogance system of the state and many other reasons we are well prepared. However, I am optimistic! I am optimistic because God loves Romania and Romanians.

 

At the end of the interview, I would like to discuss the importance of communication during this period and after the pandemic…

 

Given that this period of unpredictability has severely affected both financially and especially emotionally most people, companies and industries, we need intense, multi-directional communication with everyone around us – partners, fellow authorities, family, friends – to act together with a common goal, namely our common good. Therefore, in order to go through this crisis together, it is very important to talk openly with each other, to look for solutions, to consult and to be good allies. Only in this way will we be able to learn, win and grow together.