The photovoltaic sector in Romania has shown remarkable growth in recent years, increasing from 1.8 GW in 2022 to nearly 5 GW in 2024.

This increase is due to a combination of incentive policies and a stable legislative framework that has reduced permit times and facilitated investment in solar energy, both in distributed generation and large-scale plants. This is according to the Romanian Photovoltaic Industry Association (RPIA) in an interview with Energía Estratégica España.

RPIA points out that “solar energy is currently the fastest-growing sector in the country,” and emphasizes that due to its great potential and current development, the country could become a key player in renewable energy in the region.

“The pace and volume of photovoltaic project developments are steadily increasing. We went from 0 MW in 2022 to over 1 GW in new installations in 2023, and this year we expect an addition of nearly 2 GW. The sector is gradually moving toward maturity, backed by a more stable legislative framework that seeks to reduce uncertainties and volatility,” says the association.

Reasons for growth: incentives and regulatory framework

The growth of the solar sector in Romania has been supported by a series of policies and regulatory measures aimed at improving competitiveness and reducing market volatility.

“The reason behind this significant capacity increase comes from, on the one hand, natural factors such as a high number of sunlight hours (between 1900 and 2400), good irradiation levels, and land availability, and, on the other hand, a favorable overall development framework, which includes a simplified permitting process, proportionate levels of ambition, significant financing options (nearly EUR 1,000 million for large-scale projects and EUR 400 million for prosumers), and strong social acceptance,” says the Romanian association.

Among the recent reforms, the changes in permits for large-scale projects under 50 hectares, about 42 MW, are highlighted. These now take between 6 to 12 months to complete due to the removal of the Urban Planning Zoning (PUZ) requirement. In parallel, distributed solar systems up to 400 kW now have a simplified approval process lasting one month.

“If we look at the time it takes to obtain the necessary permits, with an average of 20 months, we are among the top three (after Lithuania and Belgium) in terms of process duration, which, combined with the natural potential and the targets set by the PNIEC, makes Romania one of the most attractive markets in Europe. At the regional level, our growth rate is only surpassed by Poland, where the main driver is the segment under 50 kW,” they analyze.

On the other hand, new investments in photovoltaics have led to an increase in clean energy employment, as each million euros creates an average of 6.1 jobs, according to RPIA. “In the medium term, it is expected that the solar energy sector will create at least 75,000 full-time jobs, positioning Romania among the seven leading countries in this field,” they state.

They also add that, aside from the simplified permitting process and available financing, the Romanian market is moving towards reducing volatility through the recently launched Contracts for Difference (CfD) mechanism, which will support the addition of 2.5 GW of new solar capacity by the end of the decade.

CfD mechanism and targets for 2030

While the Romanian photovoltaic market has been experiencing sustained growth, market volatility continues to delay and impact the development of large-scale projects.

In this context, the Contracts for Difference (CfD) mechanism offers stability signals, both in terms of prices and long-term revenue prospects. “It gives investors the confidence they need to enter the Romanian market,” says RPIA.

It is important to note that a 1.5 GW auction promoted by the government will soon be launched, including CfD mechanisms.

The first auction, which includes 500 MW for solar and 1 GW for wind energy, will end this month, with contracts to be signed by January 2025. The next round of auctions is scheduled for next year, with a target of 2 GW for solar and 1.5 GW for wind, with projects expected to be completed by 2028-2029.

“We are optimistic that this entire process will develop as planned, resulting in the addition of 5 GW of renewable energy: 2.5 GW of solar and 2.5 GW of wind,” they assure.

Romania’s National Energy and Climate Plan (PNIEC) foresees 38.3% of its energy coming from renewables, and for solar, it sets a target of 9.9 GW by 2030.

“Out of the total, 6.4 GW will come from large-scale projects (an increase of 4 GW from the current capacity) and 3.5 GW from rooftop photovoltaic systems (an increase of just under 1 GW). According to available market data, next year, the number of new large-scale projects will reach between 1 and 1.5 GW, bringing the total capacity in large-scale plants close to 4 GW,” explains RPIA.

They also add: “Additionally, we are closely monitoring the results of the CfD auctions, which should add 2.5 GW of new installations. For the rooftop photovoltaic sector, the current development rate is above 1 GW per year. Thus, our data indicates that Romania is on track to meet – and even exceed – its national goals.”