Romania
March 6, 2025

Romania’s challenge: Strengthening its power grid for renewable expansion

According to Eusebiu-Valentin Stamate, Policy Analyst at Issue Monitoring, the country is implementing regulatory and investment measures to strengthen transmission infrastructure and ensure system stability. He also points out that energy storage and green hydrogen will be key tools to stabilize the grid and meet the 85% decarbonization target by 2030 and 94% by 2050.
By Emilia Lardizabal

By Emilia Lardizabal

March 6, 2025
romania

The integration of renewable energy into Romania’s power grid is one of the main challenges in the country’s energy transition. The energy infrastructure needs modernization to accommodate the increasing capacity of wind and solar photovoltaic generation.

According to Eusebiu-Valentin Stamate,Policy Analyst at Issue MonitoringRomania is making progress in upgrading its grid to adapt to the current generation landscape. “One of the most important steps in this direction is the ongoing modernization of the national transmission infrastructure, which is essential to accommodate the growing volume of renewable energy. The National Energy Strategy emphasizes the need to improve the grid,” the analyst explains in an interview with Strategic Energy Europe.

He also highlights that authorities have implemented regulatory and investment measures to strengthen the transmission infrastructure and ensure grid stability, such as the update of Energy Law No. 123/2012 and the adoption of new policies for energy storage and green hydrogen.

One of the latest developments in this area is the introduction of a draft ordinance promoted by Transelectrica S.A., the national electricity transmission company, aimed at accelerating the development of transmission projects, especially those financed by European funds. This measure classifies certain projects as of national importance, allowing for faster permit approvals and administrative processes.

“This designation is vital to connect renewable energy to the grid more quickly and avoid bottlenecks in the energy infrastructure,” the analyst states.

On the other hand, the integration of prosumers into the grid is also being promoted through new regulations. However, the increasing number of prosumers presents new operational challenges, requiring better real-time coordination and management to ensure grid stability. To address this, Stamate notes that adaptive regulations are being developed to facilitate the integration of prosumers, aggregators, and energy communities.

The Push for Energy Storage and Green Hydrogen as Key Solutions

Energy storage is one of the key solutions to ensure power system stability in the context of growing renewable energy adoption. To tackle this challenge, the government approved the Energy Storage Law (OUG No. 134/2024) in 2024, which eliminates unnecessary taxes on stored energy and facilitates investment in battery systems and long-duration storage technologies.

“By 2030, Romania plans to install 2,000 MW of energy storage capacity, which will help manage renewable energy intermittency and ensure grid stability during high-demand periods,” highlights Stamate.

Beyond battery storage, Romania is also betting on green hydrogen as an energy carrier through the National Green Energy Investment Program and the National Hydrogen Strategy. These plans aim to promote the production of green hydrogen to balance the power system and decarbonize hard-to-electrify sectors such as transport and heavy industry.

Regulatory Push for Renewables

Stamate points out that Romania’s renewable energy growth is not only driven by its natural resources but also by an evolving legislative framework that aligns with both national priorities and EU goals.

The Integrated National Energy and Climate Plan (PNIESC) 2025-2030, updated in October 2024, has established clear objectives to expand renewable energy capacity and reduce emissions, aligning with the European Green Deal. The plan commits to reducing greenhouse gas emissions by 85% in the energy sector by 2030 and by 94% by 2050, which involves the phase-out of coal plants and the expansion of wind and solar power.

Furthermore, Romania is moving forward with plans under the National Energy Strategy (2025-2035), which prioritizes energy security, sustainability, and efficiency.

“Investments are being directed towards offshore wind farms, energy storage technologies, and the modernization of energy infrastructure. Additionally, the country is looking to increase interconnections with neighboring countries and utilize low-emission sources such as natural gas and nuclear power as part of its energy transition,” states the expert.

Although legislative frameworks are aligned with EU objectives, Stamate warns that political and economic uncertainty in Romania could affect the speed and stability of renewable energy development.

“Political changes can alter sector priorities, causing delays or inconsistencies in policy implementation. Economically, rising costs, inflation, and supply chain disruptions could hinder the financing and execution of renewable energy projects,” he emphasizes.

Nonetheless, Romania’s participation in EU funding programs, particularly the Recovery and Resilience Facility (PNRR), provides key financial backing that helps mitigate these risks and keep the country on track toward its decarbonization goals, the specialist points out.

In this regard, the renewable energy sector welcomes financing mechanisms such as the Contracts for Difference (CfD), recently implemented in Romania through wind and solar energy auctions. These contracts guarantee a fixed price for producers, ensuring financial stability for renewable energy projects, reducing investment risks, and making them more attractive to investors.

In the first auction round, contracts for over 1.5 GW of renewable capacity in wind and solar projects were awarded, with contracts covering a 15-year period.

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