Exploration for geothermal resources began in Romania in the early 1960s, based on a detailed geological exploration program for hydrocarbon resources that had a capacious budget and enabled the identification of eight geothermal areas. Over 200 wells drilled to depths between 800 and 3500 m have indicated the presence of low-enthalpy geothermal resources (40-120degreesC). Completion and experimental production from over 100 wells during the past 25 years has led to the evaluation of the exploitable heat resources of the geothermal reservoirs. The proven reserves, with the wells that have already been drilled, amount to about 200,000 TJ for 20 years. The main geothermal systems discovered on Romanian territory are in porous permeable formations such as sandstones and siltstones (Western Plain and the Olt Valley) or in fractured carbonate formations (Oradea, Bors, and north of Bucharest). The total thermal capacity of the existing wells is about 480 MW, (for a reference temperature of 25degreesC). Only 152 MWt of this potential is currently being exploited, from 96 wells (35 of which are used for health and recreational bathing), producing hot water in the temperature range 45-115degreesC. In 2002 the annual energy utilisation from these wells was about 2900 TJ, with a capacity factor of 0.6. More than 80% of the wells are artesian producers, 18 wells require anti-scaling chemical treatment and six are reinjection wells. During the period 1995-2002, 15 exploration-production geothermal wells were drilled and completed, two of which were dry holes. Drilling was financed by the geological exploration fund of the State Budget, to depths varying between 1500 and 3500 in. Progress in the direct utilisation sector of geothermal resources has been extremely slow because of the difficulties encountered during the transition period from a centrally planned to a free-market economy; geothermal production is at present far below the level that could be expected from its assessed potential, with geothermal operations lagging behind in technology. The main obstacle to geothermal development in Romania is the lack of domestic investment capital. In order to stimulate the interest of potential investors from developed countries and to comply with the requirements of the large international banks, an adequate legal and institutional framework has been created, adapted to a market-oriented economy. (C) 2003 CNR. Published by Elsevier Ltd. All rights reserved.