EnergoBit has been successful over its 29 years of existence. Can you elaborate on the reasoning behind the adoption of a new business strategy?

Over the years, EnergoBit has employed various strategies, adapting to different capabilities and market demands. In the past, our name was synonymous with the renewable energy boom in Romania, and we acted as a general contractor for over 2000 MW of projects, including 1800 MW in wind power, accounting for more than half of the major projects developed. However, with the decreasing investment appetite for renewable energy, we recognized the need to shift our focus. Our new strategy now comprises two core components: one is centered around major projects by transport and distribution operators, and the other is focused on industrial consumers. This strategy is more technical in nature, aligning with the emergence of smart solutions and the overall trend towards digitalization in the energy sector. Our goal is to become a leading player in this market by understanding and meeting the current needs of the industry, while staying true to our company’s DNA.

Energy efficiency is a growing concern in Romania. How can EnergoBit contribute to this matter?

Energy efficiency is a complex issue that requires a holistic approach, considering factors such as production, distribution, transport, and end-consumer usage. EnergoBit recognizes this and has introduced several products and solutions that contribute to increasing energy efficiency. For example, our SCADA systems enable faster commands, quicker identification of defects, and reduced losses in the system. We also produce low and ultra-low losses distribution transformers, which incorporate modern technology and offer higher performance compared to older standards. To illustrate further, consider the example of lighting, where replacing outdated bulbs with modern LED technology can reduce consumption by tenfold while maintaining the same level of comfort. There are already many technically available solutions, but the willingness of the market to implement them is crucial for driving energy efficiency improvements.

What are some of the challenges associated with operating in the business environment of Romania?

There are two important challenges that need to be addressed by public authorities in Romania. Firstly, there is a need for a long-term vision for the industry that extends to 2030-2040, accompanied by a determined effort to achieve the desired results. Secondly, stability and predictability in legislation are crucial for businesses. Foreign and local investors alike have emphasized the importance of predictable legislation, regardless of the sector. In the case of renewable energy, for instance, while lower incentives may still make the market attractive, unexpected changes in legislation can disrupt business plans and investment schemes. Ensuring stability in legislation can create a favorable environment for businesses to thrive.

Is EnergoBit actively exploring opportunities outside of Romania?

While our international activity has accounted for approximately 10% of our business in recent years, it has largely been a result of opportunistic circumstances. However, we have now started to actively pursue opportunities in foreign markets. We have dedicated personnel in the company to monitor and analyze international markets, and we are adopting a proactive and calculated approach. Our priority is to explore neighboring countries such as the Republic of Moldova, Hungary, and the former Yugoslav space, where we currently have contracts in progress worth 15 million EUR. Additionally, we are setting up EnergoBit Arabia, which has already obtained its first authorization and will be focused on the Gulf area. By 2020, we expect EnergoBit Arabia to become a self-standing business after a year of presentations and general setup in 2019.