The renewable energy sector in Romania is experiencing rapid growth, driven by favorable natural resources, high land availability, and an evolving legislative environment. In this context, PPAs (Power Purchase Agreements) have gained prominence, with a record number of transactions in 2024, thanks to the efforts of key developers like Rezolv Energy and Enery, who have driven the adoption of these contracts in the market.

Corina Melchor, Senior Clean Energy Advisor at Trio Advisory, confirms that 2024 recorded a record year with three times as many signed transactions. “Corporate interest is slowly beginning to emerge,” she points out in an interview with Strategic Energy Europe.

The prices of PPAs in Romania currently range between 65 and 85 €/MWh, a range conditioned by the low liquidity of the market and uncertainty about long-term stability.

“The PPA market in Romania is still in its emerging phase, but it has grown exponentially thanks to the efforts of developers to educate buyers,” says Melchor.

Key Market Players in Romania’s PPA Market

The PPA ecosystem in Romania consists of developers, corporate buyers, financial institutions, and market associations:

• Developers: Rezolv Energy, Enery, PPC, Engie, R Power.
• Corporate buyers (Offtakers): Asahi, T-Mobile, Bekaert, Orange, and automotive companies.
• Financial institutions: European Bank for Reconstruction and Development (EBRD) and International Finance Corporation (IFC).
• Associations: PATRES and AFEER.

In this context, companies seeking stability in energy costs are turning to PPAs, although price volatility and costs associated with physical contracts, such as balancing costs, represent significant barriers.

Growing Market, but with Regulatory Challenges

Despite the growth of PPAs in Romania, there are regulatory hurdles that create uncertainty for investors and corporate buyers. One of the main challenges is the price cap mechanism, which has been strongly questioned by the European Commission.

“The price cap mechanism discourages the signing of long-term PPAs, as many consumers prefer to wait for the government to continue providing support rather than entering into contracts in the open market,” explains Melchor.

Another key factor is Romania’s lack of membership in the AIB (Association of Issuing Bodies), which affects the credibility of corporate buyers regarding sustainability and complicates the certification of renewable energy guarantees of origin. “The absence of the AIB limits the profitability of PPAs and represents an additional obstacle,” the expert details.

However, she states that most contracts include provisions about anticipated regulatory changes, such as possible membership in the AIB, although this is still undefined.
“During the energy crisis, Romania implemented one of the most aggressive government interventions, setting a precedent for potential future regulatory changes,” she adds.

For the growth of PPA signing to be sustainable, the expert emphasizes the need to resolve regulatory uncertainty and improve market liquidity, creating a more attractive environment for investors and consumers.

Future of the Market and Network Capacity Allocation

Looking ahead, integrating new renewable energy plants into the grid infrastructure remains a challenge. By 2026, Romania’s Energy Regulatory Authority (ANRE) will introduce a competitive capacity allocation process for renewable projects, aiming to reduce grid congestion and improve supply stability.