Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 09BUCHAREST497, ROMANIA: A 'EUROPEAN' MODEL FOR THE ENERGY SECTOR

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09BUCHAREST497.
Reference ID Created Released Classification Origin
09BUCHAREST497 2009-07-16 08:45 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Bucharest
VZCZCXRO8815
PP RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSL RUEHSR RUEHVK
RUEHYG
DE RUEHBM #0497/01 1970845
ZNR UUUUU ZZH
P 160845Z JUL 09
FM AMEMBASSY BUCHAREST
TO RUEHC/SECSTATE WASHDC PRIORITY 9733
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RHMCSUU/DEPT OF ENERGY WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
UNCLAS SECTION 01 OF 02 BUCHAREST 000497 
 
SENSITIVE 
 
STATE FOR EUR/CE ASCHEIBE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ENRG ECON EINV PGOV KGHG RO
SUBJECT: ROMANIA: A 'EUROPEAN' MODEL FOR THE ENERGY SECTOR 
 
REF: A) Bucharest 440 
 
Sensitive but Unclassified, not for Internet distribution. 
 
1.  (SBU) Summary: The Government of Romania (GOR) is considering 
the creation of two vertically integrated energy companies formed 
out of existing state-owned assets, reversing a decentralization 
process that the GOR now sees as having been flawed.  Instead, two 
"national champions" able to compete on the wider European energy 
market will be fostered.  If approved, the entities will each 
include enough production, generation, and distribution assets to 
account for 90 percent of the Romanian energy market.  U.S. and 
other multinational companies have raised competition concerns with 
regard to this proposal, which seems to be have been driven by 
political, not economic, considerations.  End Summary. 
 
2.  (SBU) The proposal to develop two "national champions" was first 
mooted for post in a meeting between the Charge d'Affaires and the 
Minister of Economy (reftel).  Conversations with lower level 
interlocutors have revealed additional details of the Ministry of 
Economy's (MoE) plans.  Under the Ministry's proposal, the first 
entity would bundle the two operational nuclear reactors with two 
hydro power stations, several coal-fired power plants, and the 
national hard-coal mining company.  The seQnd entity would bundle 
natural gas producer Romgaz with the remaining hydro power stations, 
all natural gas fired power plants, the lignite fired power plants, 
and the lignite mining companies.  Both companies would also include 
distribution.  Notably absent from this mix is any renewable or 
alternative energy generation component, with the exception of a 
legal mandate to purchase "green certificates" on the market.  Since 
neither of the integrated companies will include renewable 
generation, continued growth will depend entirely on the private 
sector, which in the absence of feed-in tariffs or mandated 
renewable production quotas, may struggle to sell power to the 
integrated companies' distributors.  This, coupled with the 
perpetually delayed implementing regulations for Romania's renewable 
energy law, could slow-down expansion plans in this booming sector. 
 
3.  (SBU) The American Chamber of Commerce (AmCham) recently hosted 
a meeting with Alexandru Sandulescu, Director General of the Energy 
Policy Directorate in the MoE, to discuss energy policy, focusing on 
the proposal to "integrate" the state-owned companies.  The meeting 
was revealing in that Sandulescu repeatedly referred to the proposal 
as a "political" one that was made without the involvement of 
professional Ministry staff.  Speaking candidly, Sandulescu shared 
his concerns about possible flaws in the bundling proposal.  In his 
opinion, the inclusion of reactors 1 and 2 of the Cernavoda nuclear 
power plant in one of the new entities would make it harder for the 
nuclear power company Nuclearelectrica to finance reactors 3 and 4, 
which are currently under construction.  Another concern is with the 
integration of energy distribution, raising the possibility of an EC 
infringement procedure unless distribution is somehow cordoned off 
from the rest of the business. 
 
3. (SBU) The cost assumptions underlying the MoE's proposal are also 
questionable.  The MoE has publicly stated that the companies will 
have an average cost of 44 to 45 euro per MWh.  However, these 
estimates are based on 2006 data and do not factor in the mining 
industry coal subsidies that will be included in the price of 
electricity as of 2010, nor do they include the cost of CO2 
allowances, which will be required starting in 2013. 
 
4.  (SBU) Potential private sector competitors to the new companies 
are worried about the market implications of having two state-owned 
and operated companies controlling 90 percent of the energy market. 
These concerns have spurred Romania's Competition Council (RCC), to 
announce that it will scrutinize the plan closely.  EU Energy 
Commissioner Piebalgs has also publicly advised Romania against 
taking measures that would reduce competition on the power market. 
Still, the plan appears to have legs, with the MoE issuing a string 
of press releases over the last month making the case for the plan. 
As the MoE sees it, Romania's energy sector was wrongly 
decentralized according to generation type.  This has left the 
market fragmented and unable to make needed investments in the 
future.  It has also contributed to a situation where very little 
energy is traded over the energy exchange, as both the energy 
producers and major consumers have an incentive to lock in 
non-transparent long-term bilateral contracts.  The MoE also admits 
to wanting to build companies big enough to compete throughout 
Europe, like many of the "national champions" in neighboring states. 
 Left unsaid are the underlying goals of reasserting stronger state 
control over a strategic sector and protecting employment by 
allowing cheap hydro-power to subsidize the jobs of coal miners and 
inefficient thermal power plants. 
 
5. (SBU) Comment:  The final shape of the MoE's proposal is still 
under discussion and the jury is still out as to the ultimate 
 
BUCHAREST 00000497  002 OF 002 
 
 
impact.  Particular points of concern are the integration of 
distribution and the lack of a well thought-out plan for encouraging 
the new companies to develop renewable generation capacities.  The 
non-transparent way that the plan has been drafted and the MoE's 
unwillingness to engage with a broad range of stakeholders bode ill 
for the proposal.  Another worrying factor is the top-down manner in 
which the proposal was developed, with little input from career 
technical staff at the MoE.  That being said, if distribution can be 
firewalled off from production and if integration is a prelude to 
privatization then the proposal may yet end up positively. 
Unfortunately, given the way this proposal has developed so far, its 
overall impact will likely be negative, both for the private sector 
and for Romania's commitment to reduce greenhouse gas emissions. 
End comment. 
GUTHRIE-CORN