Romania Under Strain: Dacia and Ford Halt Production, Consumption Drops by 200 Megawatts

The government under Prime Minister Ilie Bolojan had declared the energy shortage a top priority in the days before and had sought imports from the neighbouring countries Hungary and Serbia. According to information from Bucharest, deliveries across the cross-border power lines were arranged at short notice to ensure supply to households. Industrial consumers such as the two carmakers were simultaneously called upon to voluntarily reduce their loads.

Government Seeks Imports from Hungary and Serbia

Dacia, one of the country's largest employers, which produces automobiles for the European market in several shifts at its Mioveni site, had already gradually ramped down its lines over the weekend. Ford, which manufactures the compact Puma model at its Craiova plant, followed shortly afterwards. Suppliers also reported short-time working.

Economists see the forced production stoppage as a warning signal of the country's vulnerability. In normal years Romania exports electricity to its neighbours, but this summer it is itself dependent on imports. The Chamber of Industry and Commerce in Bucharest called for an accelerated expansion of renewable energies and the development of grid infrastructure.

Business Warns of a Prolonged Standstill

The energy regulator ANRE set up a crisis task force and published hourly updated consumption data. The public was called upon to reduce electricity consumption in the evening hours and to switch off unnecessary loads. Several municipal utilities reported temporary restrictions on the supply to public facilities.

According to government circles, production at Dacia and Ford is to be gradually ramped up again as soon as the situation on the electricity market stabilises and sufficient import capacities from Hungary and Serbia are available. No exact date was given initially.

The power crisis comes at an already difficult phase for the Romanian economy. Inflation had picked up slightly in the previous month, and industrial production had already fallen short of expectations. A prolonged shutdown of the car plants could additionally weigh on the economy and worsen the employment situation in the affected regions.

Observers in Bucharest interpret the coordinated move by Dacia and Ford as a so far unique example of how closely industry and energy supply are now interlinked in Romania. The coming weeks are to show whether the imported electricity volumes and the milder weather forecasts can ease the situation on a lasting basis.