Renewable Energy

The Romanian state plays a central role in the development and regulation of the renewable energy sector. Its involvement extends across (i) policy-making and strategic planning, (ii) regulatory control and supervision, (iii) permitting and administrative coordination, (iv) market facilitation and infrastructure development, and (v) the design and implementation of support and incentive mechanisms.

The implementation and supervision of the legislative framework involve several key institutional and market entities: (i) the Ministry of Energy, acting as the central governmental body responsible for defining and implementing national energy policy including renewable energy strategy, offshore wind development, and the coordination of support schemes such as Contracts for Difference (“CfDs”), (ii) the National Energy Regulatory Authority (“ANRE”), as an independent regulator that oversees the electricity and gas markets, responsible inter alia for licenses and authorizations, and (iii) Transelectrica, the transport system operator (“Transelectrica” or “TSO”), a majority state-owned company, managing the national transmission grid, and (iv) the distribution system operators (“DSOs”), which are responsible for the operation, maintenance, and development of regional and local electricity distribution networks.

The following pieces of legislation are of particular interest in relation to Romania’s renewable energy sector:

• Law No. 123/2012 on electricity and natural gas (the “Energy Law”) establishes the legal framework for the electricity and natural gas markets, including participant rights and obligations, rules on energy production, distribution, transmission, supply, and trading;
• Law No. 220/2008 on the promotion of energy production from renewable energy sources, as amended by the Government Emergency Ordinance No. 59/2025;
• Law No. 121/2024 on offshore wind energy (“Offshore Wind Law”), which establishes the legal framework for developing, constructing and operating offshore wind farms in Romania’s offshore area;
• ANRE Order No. 6/2025 for the approval of the Regulation on the granting of licenses and authorizations in the electricity sector, a secondary legislative act establishing the conditions for the issuance, amendment, suspension, and withdrawal of licenses and authorizations for activities conducted in the energy sector, including renewable energy;
• ANRE Order No. 59/2013 for the approval of the Regulation on the connection of users to public interest electricity network, a secondary legislative act establishing the technical and procedural framework related to the connection of users and electricity production facilities to the public grid;
• ANRE Order No. 53/2024 for the approval of the Methodology regarding the allocation of electricity network capacity for the connection of electricity production sites;
• ANRE Order No. 134/2022 for the approval of the General Rules on organized electricity markets, a secondary legislative act establishing the general framework for the organization and functioning of Romania’s organized electricity markets, including day-ahead, intraday, and forward markets, for the purpose of enabling electricity trading under competitive conditions.

Romania’s renewable energy sector is strongly influenced by its commitments as a Member State of the European Union, as well as by its obligations under international treaties.

As a Member State of the European Union, Romania is required to align its national legislation with the European Union’s energy and climate framework. These commitments derive primarily from:

• Directive (EU) 2018/2001 on the promotion of the use of energy from renewable sources (“RED II Directive”), as amended by Directive (EU) 2023/2413 (“RED III Directive”), which establishes mandatory national targets for the share of renewable energy in gross final consumption and promotes guarantees of origin, self-consumers, and renewable hydrogen;
• Regulation (EU) 2019/943 on the internal electricity market, which supports the integration of renewable energy by promoting a higher share of renewables in the energy mix;
• the European Green Deal and its related legislative initiatives, which establish the overarching policy framework for achieving climate neutrality in the European Union by 2050, including “Fit for 55” package, which aims to reduce greenhouse gas emissions by at least 55% by 2030, and the REPowerEU Plan, which seeks to accelerate the use of renewable energy.

Romania is also party to several international treaties relevant to the renewables industry, including:

• The Paris Agreement (2015) under the United Nations Framework Convention on Climate Change (UNFCCC), aiming to strengthen the global response to the thread of climate change; to this end, it encourages the use of renewable energy, energy efficiency, and sustainable technologies as key means of achieving global temperature and emission reduction targets;
• The Espoo Convention (1991) on Environmental Impact Assessment in a Transboundary Context, of particular relevance for large-scale renewable energy projects, such as wind farms, hydropower plants, or transmission lines, that may have significant cross-border environmental impacts, mandating prior notification and consultation with affected states.

As of the date of this Q&A document, Romania is in the process of withdrawing from the 1994 Energy Charter Treaty, which provides a multilateral framework for energy sector cooperation, including provisions on investment protection, energy trade and energy efficiency.

ANRE is the main regulatory body in Romania responsible for enforcing the laws and regulations governing the renewable energy sector.

Government Emergency Ordinance No. 33/2007 on the organization and functioning of ANRE states that ANRE is an independent administrative authority with legal personality. Although it is subject to parliamentary oversight, ANRE is independent in its decision-making, organizational, and functional activities. Its primary mandate is to develop, approve, and monitor the implementation of mandatory national regulations that are necessary for the efficient, competitive, transparent, and consumer-oriented operation of the electricity, heat, and natural gas sectors and markets.

In recent years, ANRE has adopted several secondary legislative acts to support the integration of renewable energy into the national grid.

With respect to self-consumption (i.e., prosumer installations), ANRE Order No. 19/2022 establishes the procedures for connecting prosumers to the electricity network, setting out the technical and administrative requirements for securing grid connection in a transparent and efficient manner. ANRE Order No. 15/2022 regulates the methodology applicable to electricity produced in power plants using renewable energy sources with an installed capacity of no more than 400 kW per place of consumption. It defines the rules for both quantitative and financial compensation between the electricity produced and delivered to the grid and the electricity consumed from it, thereby promoting small-scale renewable generation and encouraging active consumer participation in the energy transition.

Recently, ANRE issued Order No. 59/2025, which approves the methodology for establishing performance indicators related to the development of a smart electricity network that promotes energy efficiency and the integration of electricity produced from renewable energy sources. This methodology sets performance standards for DSOs and the TSO in relation to the development of smart grids that enable renewable integration, energy storage, and flexibility services. It defines the indicators used to assess operator performance, the method for calculating these indicators, and the conditions under which incentives or penalties may be applied, in accordance with the applicable regulatory framework.

In addition to ANRE, the Ministry of Energy plays a central and strategic role, being responsible for implementing Romania’s national energy and climate strategy, coordinating support mechanisms for renewable energy, including CfDs, and managing fund schemes such as Modernization Fund and National Recovery and Resilience Plan.

In Romania, local public authorities play a central role in the permitting process for renewable energy projects. County councils and/or city halls are responsible for urban planning matters, including issuing urban planning certificates and related building permits. Depending on the type, scale and location of the project, several local bodies may be involved in these procedures, such as utility operator and land management authorities. Environmental protection authorities also have an essential role, as most renewable energy projects are subject to environmental impact assessment procedure.

Local authorities also help secure the “social license to operate”. This concept is understood as an informal level of acceptance and trust granted by local communities towards a project or activity. In the context of renewable energy, securing a social license depends on transparent dialogue, timely engagement with residents, responsible communication of impacts and benefits, and the willingness to address local concerns.

Romania has several renewable technologies that are already considered mature. Hydropower is the most established, with large facilities operating for decades and continuing to account for a significant share of national electricity generation. Onshore wind and solar photovoltaic are also well-advanced, backed by successive development cycles, experienced market participants, and a solid supply chain.

By contrast, a number of emerging technologies are gaining attention and gradually entering the market. Battery energy storage systems (“BESS”) are developing rapidly, both as standalone assets and in hybrid configurations with wind or solar. Biomass and biogas are present at smaller scale but are increasingly seen as complementary technologies. Offshore wind in the Black Sea is likewise emerging, currently in preparatory and legislative-development stages, but with strong long-term potential.

Overall, Romania has a solid foundation in mature renewable technologies, while the coming decade is expected to bring accelerated growth in storage, offshore wind, and other innovative solutions as part of the country’s broader energy transition.

Romania’s renewable industry is shaped by a combination of state-owned companies, major international groups, and fast-growing private investors. Hidroelectrica remain the largest renewable-energy producer, dominating the hydropower segment and holding a central role in the overall electricity market. In wind and solar, key players include PPC Renewables (formerly Enel Green Power), EDP Renewables, Engie, and Verbund, alongside major equipment suppliers such as Vestas and Siemens Gamesa.

According to Romania’s Energy Strategy for 2025–2035, the share of renewable energy in gross final energy consumption is projected to reach approximately 44% by 2035 and 73% by 2050. These targets are expected to be achieved primarily through the expansion of generation capacity from wind, solar, hydropower and geothermal sources, and greater use of green gases (such as biogas and hydrogen).

Hydropower is currently Romania’s dominant renewable technology, covering around 34% of final electricity consumption. Romania has a substantial hydropower fleet, with a net installed capacity of 6,139 MW at the beginning of 2024.

Onshore wind power remains well-developed, with 3,026.91 MW installed in 2023, representing around 16% of net installed capacity and contributing roughly 13% of total electricity generation. However, due to grid limitations and balancing constraints, the current level is close to the technical ceiling for secure operation of the National Power System in its existing configuration.

Solar photovoltaic generation is also expanding. As of early 2024, net installed solar capacity reached 1,624 MW (excluding prosumers), up from 1,185 MW in 2023. In 2023, PV power plants represented about 8% of net capacity, but due to variability contributed only around 3% of total electricity generation. Transelectrica data also shows grid-connection contracts for another 1,019.99 MW of solar capacity without commissioning schedules. A notable development in 2023 was the rapid growth of prosumer installations, whose capacity increased from 478 MW to 1,443 MW over the year.

Romania has a well-established portfolio of utility-scale renewable energy assets, primarily in hydropower and onshore wind, which is being expanded with the addition of large solar PV parks. Hydropower is still the largest contributor in terms of installed capacity and output, while the wind farms developed over the past decade form the basis of utility-scale variable generation. In recent years, the solar segment has accelerated, with several hundred-megawatt PV parks commissioned or under development.

The project pipeline continues to grow, driven by investor appetite, available sites and the introduction of competitive support schemes. Many of the next-generation projects are larger in scale, technologically more efficient and increasingly structured around merchant PPAs or participation in the upcoming CfDs allocation rounds. Overall, the market is shifting toward fewer but more capital-intensive utility-scale installations, often designed with hybrid or storage-ready configurations.

Utility-scale renewable projects follow a multi-layered permitting process involving planning, environmental and energy-sector approvals. The developer must first obtain an urban planning certificate, which identifies the applicable planning regime and all required endorsements. The project then undergoes the relevant environmental procedure, ranging from screening to a full EIA, depending on its characteristics and location.

Once the endorsements and environmental conditions are fulfilled, the project proceeds to the building permit, authorizing construction. In parallel, the developer must secure a grid connection approval from the transmission or distribution operator.

Prior to commissioning, the project must also obtain a setting-up authorization from ANRE, which allows the construction or modernization of energy capacities used for producing electricity or electricity and heat in cogeneration plants. Once this authorization is issued, an operating license is required, enabling commercial operation and participation in the electricity market.

Romania applies the same regulatory requirements to both foreign and domestic developers, and foreign ownership is not restricted. Differences arise instead from the location and technology type. Projects situated in or near Natura 2000 sites, water bodies, forest areas or culturally protected zones typically trigger more stringent environmental analysis or additional permits. Offshore renewable projects follow a distinct, sector-specific pathway.

Thus, while the core permitting structure is uniform, the geographic and environmental sensitivities of the project site can significantly influence the scope and duration of the authorization process.

The authorization pathway generally begins with the urban planning certificate issued by the local authority, followed by procurement of the endorsements listed therein. In parallel, the developer initiates the environmental procedure, administered by the environmental protection authority. The building permit is subsequently issued by the mayor or county council once planning and environmental requirements are met.

Energy-sector approvals are handled by ANRE, which issues the authorization to establish and, after commissioning, the operating license. Grid-connection permits are issued by Transelectrica or the relevant distribution operator.

Timelines vary with project complexity, but a typical utility-scale wind or solar project may require 18–36 months from initial planning to receipt of the full suite of permits.

The urban planning certificate defines procedural requirements but grants no development rights. The environmental decision sets binding mitigation, monitoring and compliance conditions for both construction and operation, and is subject to periodic review or update. The building permit authorizes construction strictly in accordance with approved designs and expires if works do not begin or are not completed within statutory time limits.

Energy-sector authorizations granted by ANRE impose obligations related to technical compliance, market participation, reporting and adherence to the grid code. The validity period of the authorization shall be determined by ANRE in accordance with the time required to complete the installation and commissioning of the authorized energy capacities, while also taking into account the duration proposed by the applicant. However, the minimum validity period for establishment authorization shall be 12 months. The renewal of such authorization may be requested in the event that the completion date of the authorized works exceeds the expiration date of the authorization.

Operating licenses are issued for fixed periods and must be renewed before expiry. The validity of the license depends on the type of activity for which it is requested and may be 25 years or 10 years. Should the license holder wish to request an extension, they must submit a notification to ANRE at least 30 days prior to the license’s expiration date. Failure to comply with this timeframe shall result in the request being treated as an application for a new authorization/license.

Non-compliance, including deviations from approved technical parameters, may lead to amendment, suspension or withdrawal of the authorization.

Planning and environmental authorizations can generally be transferred to a new project owner, subject to notification or confirmation by the issuing authority. In contrast, ANRE authorizations and operating licenses may not be transferred without prior regulatory approval. Any change that affects the conditions under which the license was granted, including significant shareholding changes, such as mergers or alterations of project characteristics, must be notified to ANRE, which may require amendments or re-issuance.

ANRE’s notification deadlines are determined by the nature and materiality of the changes affecting the authorization/license holder.

For ordinary corporate or administrative modifications (e.g. changes to the legal form, name, registered office or other licensed premises), as well as updates required to the specific conditions associated with the authorization/license, the holder is required to notify ANRE either within the timeframe established under the general conditions of the authorization or, in the absence of such a provision, within 30 days from the occurrence of the change.

For material changes, namely mergers, divisions, sales or transfers of assets, or any other operation resulting in (i) the transfer of tangible assets intended for licensed activities to another person, or (ii) a reduction of the existing share capital by 5% or more, whether effected in a single step or cumulatively, the authorization/license holder must provide prior notification to ANRE at least 120 days before the contemplated operation.

However, any of these changes must be notified and then approved by ANRE, which may amend or reissue the authorization.

Share deals, in which the project company remains the same legal entity, typically avoid formal transfer of the authorizations; however, material changes must still be reported.

Decommissioning obligations primarily arise from the environmental decision, the building permit, and contractual arrangements with landowners. Developers are typically required to dismantle equipment, manage and recycle waste materials, remove foundations where required and restore the land to its prior condition. Offshore installations are subject to dedicated decommissioning rules under the offshore wind framework.

Decommissioning obligations are established by the approval for the decommissioning of the offshore wind farm, granted by the competent authority for issuing such approvals, namely the Competent Authority for the Regulation of Offshore Petroleum Operations in the Black Sea (“ACROPO”), and by the concession contract for the offshore wind farm perimeter concluded with the Ministry of Energy. The developer is required to restore, remediate, and clean the concession area to its original condition. ACROPO approves the decommissioning plan and is responsible for monitoring all decommissioning activities.

Non-compliance with these provisions, including total or partial dismantling of the works without a valid decommissioning approval, carried out by the concessionaire or any legal entity acting on its behalf or under its mandate, shall be subject to a fine of RON 500,000 to RON 2,500,000; whereas dismantling of the works in violation of the approved decommissioning plan, carried out by the concessionaire or any legal entity acting on its behalf or under its mandate, shall be subject to a fine of RON 300,000 to RON 1,500,000.

Romanian law does not mandate a universal decommissioning fund for onshore projects. Funding is normally ensured through the project company’s own resources, although lenders, landowners and environmental authorities increasingly require financial guarantees, such as bonds or reserve accounts, to secure end-of-life obligation.

The most significant barrier is grid capacity, particularly in high-resource regions where hosting potential is limited and network reinforcement is required. Connection queues and uncertainty around future auction-based allocation of grid capacity add complexity to early-stage development.

Permitting can also be challenging, especially where projects require full EIA or are located near protected sites. Additional barriers include evolving market rules, variability in support mechanisms, increasing construction and financing costs, and the need for community engagement in certain areas. Despite these challenges, strong investor interest and ongoing structural reforms continue to support a substantial project pipeline.

(a) What environmental regulations or requirements must renewables generators in your jurisdiction observe on an ongoing basis (from pre-development to decommissioning)?

In terms of environmental protection provisions, we typically distinguish two main phases: (i) development, and (ii) operation (including eventual decommissioning). Across both, renewable generators are subject to the general environmental regulatory framework applicable to energy facilities in Romania, rather than to a stand-alone “renewables-only” regime.

(i) Development phase

Renewable energy projects in Romania are primarily subject to the environmental impact assessment (“EIA”) framework set out in Law No. 292/2018 on the assessment of the effects of certain public and private projects on the environment, which implements the EIA Directive in national law.

Most energy projects, including wind and solar farms, fall under Annex 2 of Law No. 292/2018, meaning that the competent environmental authority decides on a case-by-case basis whether a full EIA is required, based on criteria such as project size, location (including proximity to Natura 2000 and other protected areas), potential cumulative impacts and the sensitivity of the environment. Where an EIA is required, the procedure involves staged steps (screening, scoping, preparation and quality review of the EIA report) and culminates with the issuance or refusal of the environmental agreement.

Recent developments in the renewables sector have added a layer of special rules through Government Emergency Ordinance No. 59/2025, which partially transposes the RED III Directive. This act requires a coordinated mapping of areas with renewable potential and the designation of (i) “go-to” areas for renewables and (ii) dedicated infrastructure zones for grid and storage projects. These plans themselves are subject to strategic environmental assessment (SEA) (and, where applicable, appropriate assessment under the nature protection regime) and must respect planning principles such as prioritizing artificial or already built-up surfaces and expressly excluding Natura 2000 sites, other protected natural areas and cultural heritage sites. For projects located within such designated zones, OUG No. 59/2025 allows, under strict conditions, derogations from the project-level EIA, provided that mitigation and, where relevant, compensatory measures set at plan level are observed and a prior screening carried out by the Ministry of Environment confirms that no significant unforeseen adverse effects are likely.

These derogations are not absolute. Projects that may have significant transboundary environmental effects or where another Member State requests consultation cannot benefit from the EIA exemption and must follow the full EIA procedure, including cross-border notification and consultation. Likewise, projects situated outside the designated “go-to” and dedicated infrastructure zones, or projects within such zones but for which the screening reveals a high probability of significant negative effects that cannot be adequately mitigated, remain fully subject to Law No. 292/2018. In practice, this means that renewable energy generators must comply on an ongoing basis with (i) the conditions of the environmental agreement (where EIA has been required), (ii) any mitigation/compensatory measures set in SEA and plan-level decisions in designated zones, and (iii) the continuing obligations on monitoring, reporting and public information, with the understanding that authorities may “re-open” the assessment where new, significant environmental risks emerge

(ii) Operation and decommissioning phase

Once operational, renewable energy projects must obtain and maintain a valid environmental authorization for operation, issued by the competent environmental authority, which governs the ongoing environmental operation of the facility. This authorization sets out binding conditions relating to emissions (where applicable), noise, vibration, waste management, soil and water protection, biodiversity protection and monitoring obligations. Project operators are required to comply with these conditions throughout the operational life of the asset and to submit periodic monitoring reports, with inspections carried out by the environmental authorities to verify compliance.

Renewable generators must also comply with broader horizontal environmental legislation, including waste management rules (covering, for example, end-of-life photovoltaic panels, turbine components and hazardous substances such as oils), water-use and water-discharge permits (where relevant), as well as air quality and noise regulations. Any material modification of the project during operation, such as repowering, capacity increases or technological changes, may trigger a reassessment of the environmental authorization and, where applicable, a new environmental screening or EIA procedure.

Decommissioning obligations are typically established through the environmental authorization, the building permit and any land-use agreements. Operators are generally required to dismantle installations at the end of their operational life, manage and recycle waste in accordance with applicable legislation, remove foundations where required and restore the land to an agreed condition. In certain cases, environmental authorities may require the operator to submit a decommissioning plan or demonstrate the availability of financial resources to cover decommissioning and site-restoration costs.

(b) What are the potential consequences of breach of these requirements – both for the renewables generator and for its directors, managers and employees?

Breaches of environmental requirements in Romania may give rise to a range of administrative, civil and, in certain cases, criminal consequences, depending on the nature and severity of the infringement.

For the renewables generator, non-compliance may lead to administrative sanctions imposed by environmental authorities, including warnings, fines and binding remediation measures. In more serious cases, authorities may suspend or revoke the environmental authorization, order the temporary or permanent cessation of activities, or require restoration of the affected environment at the operator’s cost. Environmental breaches may also expose the project company to civil liability for environmental damage, including claims for compensation and obligations to undertake remediation under the environmental liability regime. Persistent or material non-compliance can also have indirect consequences, such as impacts on licensing status, bankability, insurance coverage and contractual arrangements.

For directors, managers and employees, liability may arise where breaches are attributable to fault, negligence or intentional misconduct. Administrative fines may be imposed on individuals responsible for compliance failures, while serious infringements, such as pollution, unlawful waste handling or operation without a required environmental permit, may constitute criminal offences under Romanian law, potentially resulting in criminal fines or custodial sanctions. Management bodies may also face personal liability if failures in organization, supervision or decision-making lead to environmental violations.

Overall, the Romanian enforcement framework emphasizes both corporate and personal accountability, encouraging active compliance management and effective internal controls throughout the lifecycle of renewable energy projects.

(c) Which national and regional regulatory bodies are responsible for the enforcement of environmental obligations, and what is their general approach in regulating the renewables industry?

Environmental obligations for renewable energy projects in Romania are primarily enforced by a combination of national and regional/local authorities, each with distinct competencies.

At national level, the Ministry of Environment, Water and Forests sets overall policy and coordinates the implementation of environmental legislation, including EIA and SEA procedures, nature-protection rules and waste-management frameworks. The National Environmental Protection Agency (NEPA) and its county-level agencies are responsible for issuing environmental agreements and authorizations, conducting screening and EIA procedures, monitoring compliance, and imposing administrative sanctions where necessary. The National Environmental Guard, operating through regional inspectorates, is the primary enforcement body; it carries out inspections—scheduled and unannounced—and may order cessation of activities, impose fines or require corrective measures.

Additional specialized bodies may intervene depending on project characteristics, including the Water Basin Administrations (water-use and discharge permits), the National Agency for Protected Natural Areas (oversight of Natura 2000 and other protected areas), and, for offshore wind projects, ACROPO, which oversees offshore safety and environmental obligations.

In general, the regulatory approach toward the renewables industry is one of prudential facilitation: authorities recognize the strategic role of renewable energy in meeting climate and energy targets and have introduced procedural streamlining measures, particularly through the RED III transposition. However, this supportive stance is balanced by a stricter focus on compliance in sensitive areas—especially Natura 2000 sites—and on ensuring that accelerated permitting does not compromise environmental standards. In practice, regulators tend to be cooperative where developers demonstrate proactive compliance and transparent engagement, but enforcement can be firm where obligations are neglected or environmental risks are underestimated.

(a) What key health and safety requirements apply to renewables projects in your jurisdiction and are there best practices in relation to health and safety that should be adopted?

Renewable energy projects in Romania are subject to the general occupational health and safety framework applicable to all industrial and construction activities, rather than to a specific regime for renewable technologies. During the design and construction phase, developers and contractors must appoint a safety coordinator, prepare a health and safety plan tailored to the site, carry out formal risk assessments, train workers, ensure medical surveillance, provide suitable protective equipment and certify competency for high-risk tasks. Construction activities such as working at height, lifting operations, electrical works and use of heavy machinery require dedicated procedures, method statements, permits-to-work and ongoing inspections to control risks and maintain compliance.

Once in operation, the project company must maintain a structured health and safety management system, periodically update risk assessments, designate personnel for oversight, implement safe-operation procedures and lock-out/tag-out protocols, manage contractor access, ensure emergency response measures are in place and keep statutory inspection records for electrical and mechanical equipment. Although the core obligations are common across technologies, typical risk profiles vary: wind assets require particular controls for working at heights, crane and blade handling and lightning protection; solar plants focus on electrical safety, fire prevention and panel handling; and biomass/biogas plants must address combustible materials, hazardous substances, confined spaces and process safety.

Best practice in the sector generally involves exceeding minimum legal requirements by adopting recognized management standards (e.g., ISO 45001), integrating regular worker training and toolbox talks, conducting contractor due-diligence and audits, monitoring near misses and incidents, and deploying digital systems for access control, alarms and lone-worker protection. A strong safety culture, documented procedures and proactive engagement with regulators and emergency services remain essential to limit exposure to sanctions, protect personnel and ensure reliable operation across the lifecycle of the renewable facility.

(b) What are the potential consequences of breach of these requirements – both for the renewables generator and for its directors, managers and employees?

Breaches of health and safety requirements in Romania may result in significant administrative, civil and, in serious cases, criminal consequences, depending on the nature and severity of the non-compliance.

For the renewables generator, labor and health and safety authorities may impose administrative sanctions, including warnings, substantial fines and mandatory corrective measures. In the event of serious or imminent danger to workers, inspectors are empowered to order the suspension of works or operations, either partially or in full, until deficiencies are remedied. Accidents resulting from non-compliance may also expose the project company to civil liability, including claims for damages from injured workers or third parties, increased insurance premiums and contractual claims from counterparties. Repeated or serious breaches can trigger enhanced inspections, reputational damage and, in extreme cases, revocation of authorizations related to the activity.

For directors, managers and employees, Romanian law provides for personal liability where breaches are attributable to fault, negligence or failure to discharge statutory duties. Managers with designated safety responsibilities may face administrative fines or other sanctions if they fail to organize, supervise or enforce health and safety measures. In cases involving serious injury or death, or where breaches are intentional or grossly negligent, criminal liability may arise, potentially leading to criminal fines or custodial sentences for responsible individuals. Employees may also face disciplinary measures where they disregard established safety rules or procedures.

Overall, the Romanian enforcement regime places strong emphasis on accountability at both corporate and individual level, encouraging renewables developers and operators to maintain robust health and safety systems, clear allocation of responsibilities and effective preventive controls throughout construction and operation.

In Romania, small-scale distributed generation projects, most commonly rooftop solar installations and smaller ground-mounted systems, are subject to a simplified regulatory and permitting regime compared to utility-scale renewable projects, reflecting their reduced system and environmental impact.

From a permitting and planning perspective, many small-scale projects benefit from streamlined procedures. The right to build and the issuance of building permits for facilities for the production and storage of electricity and hydrogen from renewable sources, including transformer stations, cables, and grid connection installations, are permitted without approved urban planning documentation, whether located within or outside built-up areas. These exemptions result in a reduction of permitting time and procedural complexity for numerous small and medium-sized ground-mounted solar projects.

Furthermore, in certain cases, exemptions from environmental impact assessment requirements are applicable. Environmental procedures are usually limited to screening, and building permits may be simplified or not required for very small installations, depending on their nature and location. By contrast, utility-scale projects typically require full planning documentation, multiple sectoral endorsements and, frequently, a full EIA.

In terms of grid connection, distributed generation connects predominantly to the low or medium voltage distribution network, with shorter timelines and fewer technical requirements. Prosumers and small producers benefit from standardized connection procedures and connection agreements, whereas utility-scale projects must undergo complex grid studies and, increasingly, competitive allocation of grid capacity at transmission or high-voltage distribution level.

At licensing and market-participation level, small-scale generators are often exempt from the requirement to obtain an ANRE operating license or benefit from simplified registration procedures, and they may access preferential commercial regimes such as net-billing or simplified settlement mechanisms. Utility-scale projects, in contrast, require full licensing, compliance with market, balancing and grid-code obligations, and participation in wholesale markets.

For small-scale distributed generation projects, where the maximum electrical power delivered to the grid does not exceed 1 MW, the issuance of an authorization permit by ANRE is not required. In cases where the maximum electrical power delivered to the grid is less than 1 MW but the installed capacity is greater than or equal to 1 MW, the concessionaire or developer is required to notify the competent authority of the investment project both at the commencement of construction works and upon signing the commissioning acceptance report. The commercial exploitation of electricity generation or cogeneration capacities, as well as energy storage facilities with a total electrical capacity of less than 1 MW, may be carried out by the owner without an ANRE license.

Overall, the framework for distributed generation is designed to encourage decentralized renewable deployment through administrative simplification and reduced regulatory burden, whereas utility-scale projects are subject to more rigorous planning, environmental and system-integration requirements reflecting their scale and impact.

Small-scale distributed generation projects in Romania are primarily connected to the distribution networks, rather than the transmission system. Most such projects, particularly rooftop and small ground-mounted photovoltaic installations, are connected to the low-voltage (LV) or medium-voltage (MV) electricity distribution networks operated by the regional distribution system operators (DSOs) (i.e., Delagz Grid S.A., Disitribuție Energie Electrică S.A., Distribuție Energie Oltenia S.A., Rețele Electrice România S.A.)

Projects classified as prosumers (i.e., end users that both consume and produce electricity, typically through solar PV) are almost exclusively connected at LV or MV level and fall under dedicated connection and settlement regimes designed for decentralized generation. These are set out in the secondary rules as technical connection conditions for prosumers, which govern the low-voltage/medium-voltage (LV/MV) connection for small, decentralized systems. Non-prosumer small producers may also connect at MV level, depending on installed capacity and technical characteristics.

The applicable network rules, connection standards and technical requirements are set by ANRE and implemented by the DSOs, with simplified and standardized procedures compared to transmission-level connections. Connection to the transmission network operated by Transelectrica is generally not relevant for small-scale distributed generation, as this level is reserved for large-scale or system-significant generation facilities.

Overall, the distribution networks play the central role in integrating small-scale renewable generation in Romania, reflecting the decentralized nature of these projects and their close link to local consumption.

Romania supports the deployment of renewable energy projects through a combination of national programs and EU-funded mechanisms. The most significant instrument is the Modernization Fund, an EU facility designed to assist lower-income Member States in modernizing their energy systems, improving energy efficiency and accelerating the transition to clean energy. Romania is a major beneficiary of this fund and has launched several financing calls dedicated to new renewable electricity generation capacities, including solar, wind and hydro projects, as well as self-consumption installations and grid and storage infrastructure. The Fund continues to represent a central pillar of Romania’s strategy for expanding renewable energy production. The latest news in the field of renewable energy is that on 10 December 2025, the Ministry of Energy published a consultation announcement regarding the updated Applicant's Guide for Supporting Investments in the Development of New Storage Capacities for Electricity Produced from Renewable Energy Sources for Public Entities.

Another key source of support is the National Recovery and Resilience Plan (PNRR), financed under the EU’s Recovery and Resilience Facility. The plan includes a substantial green-transition component aimed at accelerating renewable energy deployment, improving energy efficiency and supporting workforce requalification for green skills. Through PNRR-funded investment schemes, Romania has issued competitive calls for developing new renewable-energy capacities, with a focus on utility-scale wind and solar projects and aims to stimulate both private and public-sector participation in renewable generation and related infrastructure.

Romania does not currently provide a broad, renewables-specific tax relief regime comparable to classic investment tax credits. However, certain fiscal measures and regulatory adjustments do support renewable investments indirectly. One notable development concerns energy storage, where recent legislative changes have eliminated the risk of double taxation of stored electricity. Under the previous framework, electricity used for storage was effectively charged twice, once upon withdrawal from the National Energy System and again upon reinjection.

This issue has been addressed through amendments adopted by the energy regulator and the legislator, which exempt electricity used for storage from certain regulated charges, including the high-efficiency cogeneration contribution and, in specific cases, network tariffs. While this measure is primarily regulatory in nature, it has an important fiscal effect by improving the economics of storage projects and of hybrid renewables-plus-storage investments.

Beyond this, renewable energy projects benefit from the general tax framework applicable to investments, including standard depreciation rules, deductibility of operating expenses and access to state-aid schemes funded through EU instruments (such as the Modernization Fund and the National Recovery and Resilience Plan), which function as grants rather than tax reliefs. As a result, fiscal support for renewables in Romania is currently delivered more through direct subsidies and reduced regulatory charges than through targeted tax incentives.

Yes. In recent years, several regulatory and administrative interventions have affected both the development and operation of renewable energy projects in Romania, as well as their revenue predictability.

On the development side, delays in permitting and grid connection have been a recurring issue, particularly for utility-scale projects. Constraints in transmission and distribution capacity, lengthy timelines for issuing technical connection approvals and the need for network reinforcement have slowed down project implementation in certain regions. While reforms are underway to address these bottlenecks (including the new auction-based grid-capacity allocation regime), these measures are not yet fully operational and transitional uncertainty remains.

From an operational and revenue perspective, renewable projects have also been impacted by frequent and sometimes rapid legislative changes in the energy and fiscal framework. In particular, temporary market interventions such as electricity price caps, revenue clawback mechanisms and windfall contribution schemes, introduced in response to the energy crisis, have affected the ability of renewable generators to freely monetize output at market prices. Although many of these measures were designed as exceptional and time-limited, their repeated extension or amendment has created uncertainty for investors and lenders.

TZA Answer: In addition to the national grant schemes and EU-funded programs described above, Romania benefits from a broader set of EU-level initiatives that indirectly or directly support the development of renewable energy. One such instrument is InvestEU, which provides guarantees and blended-finance options to mobilize public and private investment in areas such as renewable generation, energy efficiency, grid infrastructure, innovation and digitalization. Through InvestEU, Romanian project sponsors can access financing products offered by the European Investment Bank and other implementing partners on favorable terms, supporting both large-scale renewable developments and enabling infrastructure.

Romania is also eligible for support under the Innovation Fund, which finances first-of-a-kind commercial projects in areas such as renewable hydrogen, energy storage, carbon capture and innovative renewable technologies. While highly competitive, this mechanism can significantly de-risk advanced or emerging technologies.

At a policy level, the implementation of the RED III Directive, including the designation of renewable “go-to areas” and streamlined permitting processes, functions as an additional form of incentive by reducing administrative burdens and accelerating project timelines. Likewise, EU-driven reforms in electricity market design and flexibility services are expected to create new revenue opportunities for renewable energy and storage operators.

Taken together, these instruments, financial, regulatory and market-based, enhance the overall investment environment for renewable energy in Romania by complementing domestic support measures and facilitating access to European funding, guarantees and accelerated permitting pathways.

Yes, debt financing is typically used for renewable energy projects in Romania. The prevailing model is project finance, generally structured on a limited or non-recourse basis, where repayment relies primarily on the cash flows generated by the project. Financing is usually provided to a special purpose vehicle (SPV) established to develop, construct, and operate the project.

Common financing structures include:

• project finance (limited recourse): the SPV provides security over its assets, including mortgages over land and installations, shares, bank accounts, receivables, and assignments of key project contracts (such as engineering, procurement and construction (EPC) contracts, operation and maintenance (O&M) contracts, lease, and power purchase agreements (PPAs));
• corporate or balance sheet financing: accessed by sponsors part of larger group of companies or vertically integrated energy groups, where loans are extended in consideration of the strength of the sponsor’s balance sheet, often supported by corporate guarantees;
• green and sustainability-linked loans: increasingly used by both local and international lenders, aligned with the EU Taxonomy and Green Loan Principles (developed by the Loan Market Association);
• hybrid finance structures: projects frequently combine commercial debt with grants under national and EU support schemes, such as the National Recovery and Resilience Plan (in Romanian, “PNRR”) or Modernization Fund.

Recent market practice seems to indicate that lenders place significant emphasis on the existence of bankable long-term PPAs, given the expiry of the former green certificate support mechanism. Both local and international financial institutions are active participants in the Romanian renewables financing market.

Each of the main financing structures used for renewable energy projects in Romania is characterized by distinct advantages and disadvantages, depending on the project’s scale, sponsor profile and risk allocation preferences.

Project finance (limited or non-recourse) structures are widely regarded as the standard model for large-scale renewable projects. Their main advantage lies in the ability to ring-fence project risks within a special purpose vehicle (SPV), allowing sponsors to limit recourse to their own balance sheet. This structure facilitates long-term financing aligned with the project’s expected cashflows and enables risks to be clearly allocated among the various participants (lenders, contractors and offtakers). However, project finance arrangements are complex and involve higher transaction costs due to extensive due diligence, documentation and security requirements. Lenders’ appetite also depends on the existence of a stable regulatory framework and bankable long-term PPAs (before transition to merchant tail exposure).

In contrast, corporate or balance sheet financing offers a simpler and faster route to securing funding. It generally benefits from lower transaction costs and typically more favorable pricing, as lenders typically rely on the sponsors’ creditworthiness rather than the project’s standalone performance. This structure provides flexibility to finance several projects within the same corporate group. The main drawback is that such financing is fully recourse to the sponsors, increasing leverage at the corporate level and potentially limiting sponsors’ borrowing capacity for other potential investments.

Green and sustainability-linked loans are increasingly common and provide additional advantages in the form of potential interest rate reductions or other favorable terms provided that pre-agreed sustainability targets are met. These structures also enhance compliance with the EU Taxonomy and ESG criteria, which is increasingly valued by both lenders and investors. The main disadvantages relate to the additional reporting obligations and the risk of pricing adjustments if environmental or social key performance indicators (KPIs) are not (partially or fully) achieved.

Hybrid finance structures, which combine commercial debt with EU or state-supported funding (such as under National Recovery and Resilience Plan or Modernization Fund), can significantly improve project economics and bankability. They reduce the overall cost of capital and support the deployment of innovative or capital-intensive technologies. However, these schemes often involve lengthy application and approval procedures and impose strict compliance, monitoring and reporting obligations under national and EU state aid rules. Additionally, they may limit certain changes to project or SPV ownership or distributions during the monitoring period.

When determining the optimal financing structure for a renewable energy project in Romania, sponsors and lenders should consider a range of legal, regulatory, financial and commercial considerations (including broader strategic objectives) that can significantly affect the project’s bankability and long-term performance.

A key factor is the regulatory framework applicable to the renewable energy sector. Stability and predictability of the regulatory regime are essential for lenders when assessing credit risk and project bankability.

Revenue certainty is another critical consideration. Most financings rely significantly on long-term PPAs and/or other hedging mechanisms. The creditworthiness of the offtaker, PPA tenor, pricing structure (fixed or indexed) and termination provisions are key elements that directly influence the financing structure and risk allocation between the parties.

From a security and enforceability perspective, lenders typically require a comprehensive Romanian-law security package over project assets (both movable and immovable), shares, receivables and bank accounts. It is important to ensure that all security interests are properly created and perfected, taking into account relevant legal requirements.

Sponsors should also consider tax and corporate structuring implications, including potential benefits of using holding structures in EU jurisdictions with favorable double taxation treaties, as well as VAT and land ownership restrictions applicable to foreign investors.

Another relevant aspect concerns environmental and permitting risks. Compliance with national environmental impact assessment and construction permitting requirements is a prerequisite for both financing and operation of energy projects. Lenders typically condition disbursement on the project obtaining all required permits and licenses and maintaining them throughout the financing period.

Finally, market and operational risks - such as grid capacity availability, pressures on construction costs and the availability of experienced EPC and O&M contractors - should be carefully assessed during structuring. Where possible, these risks should be mitigated through, among others, appropriate contractual provisions, insurance coverage and technical due diligence.

TZA Answer: A variety of both national and international financial institutions and structures are currently active on the Romanian market of financing renewable energy projects.

Among local commercial banks, the most active participants include, among others, Banca Transilvania, Banca Comercială Română (BCR, part of Erste Group), CEC Bank, BRD (part of Groupe Société Générale), Raiffeisen Bank Romania, UniCredit Bank and ING Bank. These credit institutions have developed dedicated green finance frameworks and are generally known for widely participating in project finance and sustainability-linked lending involving renewable energy and energy efficiency projects.

Additionally, international and multilateral development banks play a significant role, particularly in large-scale projects requiring long tenors or complex risk structures. Key players include the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB) and the International Finance Corporation (IFC). These institutions often provide both direct loans and indirect financing through local partner banks, as well as technical assistance and co-financing facilities.

Romanian renewable projects also benefit from access to EU-level funding instruments, including Modernization Fund and allocations under National Recovery and Resilience Plan. These mechanisms often provide grants that complement commercial (bank) debt in hybrid finance structures.

Debt financing for renewable energy projects in Romania is primarily sourced from the local banking market, complemented by European and international lenders for larger or more complex transactions.

The Romanian banking market remains the principal source of debt for small to medium-sized renewable projects. Local banks have developed significant expertise in project finance and increasingly participate in green and sustainability-linked lending. These institutions offer loans in both local currency (RON) and foreign currencies (i.e. EUR or USD), with loan tenors typically depending on project size, offtake arrangements and sponsors (risk) profile.

For larger-scale or cross-border financings, sponsors often turn to the European financing market, particularly banks and financial institutions based in Vienna, Frankfurt and London. Such lenders have renowned experience in structuring limited recourse project financings (typically under English law) and providing longer maturities and (in some cases) more flexible terms than those generally available in the national market. Also, syndicated or club deals involving both Romanian and international banks have become increasingly common for utility-scale projects.

Multilateral and development finance institutions - such as EBRD, EIB and IFC - also play a central role in Romania’s debt market. They typically provide long-term euro-denominated facilities, either directly or through co-financing arrangements with local banks. Their participation generally enhances overall bankability, supports environmental and social compliance and is likely to raise additional private capital through risk-sharing mechanisms (if needed).

While the New York and broader United States (US) financing markets are not typically accessed directly for Romanian renewable energy projects, US and international investors may participate indirectly through infrastructure funds (including, but not limited to, direct equity investments) or green/sustainability-linked bonds (although this does not seem to represent the generally preferred financing route for Romanian energy projects).

Connection of renewable energy projects to the transmission and distribution networks in Romania follows a uniform regulatory framework applicable to all electricity generation facilities, irrespective of technology. The process is governed primarily by Law No. 123/2012 and the technical connection rules adopted by ANRE, including ANRE Order No. 59/2013 and, from 2026, the capacity-allocation mechanism set out in ANRE Order No. 53/2024, which approves the Methodology regarding the allocation of electricity network capacity for connecting electricity generation sites, as well as for amending and supplementing certain orders of the President of the National Energy Regulatory Authority in the field of connecting users to the public electricity network (“ANRE Order No. 53/2024”)

Developers must first obtain a technical connection approval (ATR) issued either by the transmission system operator (Transelectrica) or by the relevant distribution operator, depending on the chosen voltage level. The ATR is based on a network study (i.e., the solution study) that assesses available hosting capacity, any reinforcement works required and technical conditions for synchronization and safe operation. For larger projects, the connection procedure must be coordinated with expansion or modernization works planned within the network development programs.

Currently, the connection rules do not prescribe different procedures for renewable versus non-renewable projects; however, renewables are more prone to triggering capacity constraints due to their geographical clustering and variable generation. This reality has driven the adoption of the new capacity-allocation methodology under ANRE Order No. 53/2024, which will apply from 1 January 2026. Under this regime, hosting capacity will be allocated on the basis of comprehensive network studies that take into account all valid technical connection approvals, existing and planned generation units, and grid reinforcement projects. The aim is to ensure a transparent, non-discriminatory and system-wide view of available capacity.

The new procedure applies to grid connection requests of at least 5 MW. Capacity will be allocated through annual auctions beginning July 1st, with daily sessions covering each year within the 10-year allocation horizon. The allocated capacity will be granted for a 10-year period commencing in the second year after the auction takes place. If the total connection requests are equal to or less than the available capacity, all requests will be approved. If requests exceed the available capacity but remain within the limits of planned reinforcement works, they are all accepted at the starting price. However, if the requests surpass the reinforced capacity, the allocation is determined through competitive bidding. Projects are ranked and awarded based on their bid price. In this regard, the project commissioning must be aligned with the targeted auction year; missing the relevant session could delay grid access.

Certain technology-specific requirements may apply at a technical level (e.g. forecasting, telemetry, reactive power management, storage integration or hybrid configurations), but the overall legal and procedural framework remains uniform across renewable and conventional projects. Export connections to neighboring Member States follow the same general process, subject to cross-border capacity rules, congestion management and compliance with ENTSO-E standards.

In practice, although the connection regime is neutral from a legal standpoint, renewable energy developers are more exposed to grid-capacity limits and balancing considerations. These constraints are expected to ease progressively as the new allocation methodology, grid-modernization programs and storage-integration solutions are rolled out.

Export of renewable energy from Romania is subject to the same core market and network rules that apply to all electricity, with no technology-specific restrictions. Intra-EU electricity trade is governed by Law No. 123/2012, EU market regulations and ENTSO-E operational rules. Renewable producers exporting electricity must comply with balancing obligations, grid-code requirements and cross-border capacity allocation mechanisms. Cross-border transmission capacity is allocated through mechanisms coordinated by Transelectrica in cooperation with neighboring transmission system operators, typically via European platforms for day-ahead and intraday markets. Access is granted on a transparent and non-discriminatory basis.

From a permitting perspective, there are no additional authorizations specifically for exporting renewable energy, beyond those required for operating and connecting the generation facility to the transmission grid. However, export availability depends on the existence of transmission capacity on Romania’s interconnection lines and the results of congestion management procedures. Renewable producers must also meet meter-ing, data reporting and forecasting obligations, and comply with market-coupling arrangements that facilitate cross-border trade.

In practice, export volumes may be influenced by system constraints, including curtailment during periods of high renewable output, transmission-capacity limits or balancing-market requirements. Nonetheless, there are no legal prohibitions on exporting renewable generation, and Romania’s interconnection capacity, together with EU market integration, supports the free movement of electricity across borders.

Beyond connection procedures, renewable developers should take several practical and regulatory considerations into account when interfacing with the transmission and distribution networks. First, balancing obligations and participation in ancillary services markets are increasingly relevant, as grid codes require renewable generators to provide forecasting, reactive power support, telemetry and, where feasible, flexibility services.

Rules around participation in balancing and ancillary services are still evolving, and the lack of clear remuneration mechanisms can limit the commercial value of such services for renewable operators.

General provisions are stipulated in Law 123/2013, however there are specific provisions in the secondary legislation; balancing operations are specifically regulated by the ANRE Order nr. 127/2021 which provides a clear and single framework for parties responsible for balancing, so that they can participate effectively in the balancing market and in the imbalance settlement process.

Network charging remains another sensitive topic. Although Romania applies a technology-neutral tariff system, the application of certain grid charges to consumption cycles in hybrid or storage-integrated projects is still being assessed, which may influence the economic structuring of projects. Developers should also be aware that, in certain cases, they may be required to construct or co-finance parts of the network infrastructure necessary for their connection, especially where reinforcement works are identified in the network studies.

In practical terms, the main challenge today is network capacity. Regions with high renewable potential often face grid-hosting constraints, which impact both connection approvals and dispatch arrangements. In several areas, developers report long waiting times for connection studies and capacity allocation, reflecting the cumulative volume of new projects and the pace of grid reinforcement. This issue is expected to ease as the new capacity-allocation methodology under ANRE Order No. 53/2024 becomes operational and as planned transmission upgrades progress.

Finally, developers should also consider cross-border market integration rules, potential curtailment risks during high-production periods and the growing importance of co-located storage solutions to improve grid compatibility. Overall, while Romania maintains a non-discriminatory framework for transmission, distribution and export of renewable electricity, grid availability and market rules remain decisive factors in shaping project timelines, bankability and operational performance.

Romania is currently undergoing significant reform of its grid connection framework for renewable energy projects. The most important development is the adoption of ANRE Order No. 53/2024, which introduces a new methodology for electricity network capacity allocation. This regime, applicable as of 1 January 2026 to new generation and storage projects of at least 5 MW, replaces the traditional “first-come, first-served” approach with competitive, auction-based allocation of grid capacity.

To operationalize this shift, the transmission system operator, Transelectrica, has issued detailed procedures governing the organization of capacity-allocation auctions, the assessment of network availability and the coordination of reinforcement works. In parallel, ANRE has launched a public consultation on draft amendments to Order No. 53/2024, aimed at clarifying transitional arrangements, eligibility criteria, financial guarantees and other procedural aspects relevant to projects already in the development pipeline.

Additional changes affect connection rules at distribution level. Through ANRE Order No. 20/2025, the regulator has updated the technical and contractual framework for grid connection, reflecting increased renewable penetration and the need for greater system flexibility.

These connection-related reforms are complemented by broader legislative changes introduced under Emergency Ordinance No. 59/2025, which implements elements of the RED III Directive and introduces measures intended to streamline permitting and grid integration for renewable projects. While these reforms are expected to improve system efficiency and reduce speculative connection applications, they also create short-term uncertainty until the secondary legislation and practical guidance are finalized.

Overall, the move towards auction-based capacity allocation represents a fundamental change in Romania’s grid connection regime. Developers should prepare for a more competitive and structured access framework, with stronger eligibility and guarantee requirements, particularly from 2026 onwards.

Energy storage projects in Romania are generally subject to the same core regulatory framework that applies to electricity generation facilities, complemented by specific sector rules depending on the technology used. The key entry point is Law No. 123/2012 on electricity and natural gas, which defines electricity storage as part of the regulated electricity sector. Under this act and the licensing regime approved through ANRE Order No. 6/2025, developers must obtain the relevant authorizations and, in most cases, an operating license from ANRE for storage-related activities, whether stand-alone or in hybrid form with generation assets. Some low-capacity storage units (under or equal to 1MW) are exempt from the obligation to obtain an authorization or license.

From a construction perspective, storage projects are generally treated as energy installations and must undergo the standard urban planning and permitting procedures at local level, including obtaining zoning approvals, urban planning certificates and building permits. Depending on technology and location, environmental screening and, where necessary, a full environmental impact assessment under Law No. 292/2018 may also be required.

Grid-connected storage projects are further subject to network connection rules, including the issuance of a grid connection permit and, from 2026, the capacity-allocation methodology under ANRE Order No. 53/2024. These rules are designed to ensure transparent allocation of available network capacity and to reflect the specific system services that storage assets can provide.

While Romania recognizes energy storage as a strategic enabler for renewable integration, several barriers still constrain large-scale deployment. The most important challenge remains grid capacity, including limited hosting potential, balancing constraints and delays in reinforcement works, which affect both standalone storage and hybrid wind–solar–storage configurations. These limitations are also reflected in connection procedures and, until the new capacity-allocation methodology under ANRE Order No. 53/2024 becomes fully applicable on 1 January 2026, may create uncertainty regarding network access.

At regulatory level, the framework for storage is still evolving. Although Law No. 123/2012 defines storage, secondary rules on market participation, remuneration for flexibility services and the treatment of storage as a system resource remain fragmented. In particular, the absence of dedicated compensation mechanisms for ancillary services and clear rules on charging/discharging tariffs can impact bankability. For hydrogen storage or conversion facilities, the lack of mature technical standards and safety protocols further adds complexity.

Storage projects are also exposed to the same environmental and planning constraints as other energy infrastructure. Depending on location, they may require screening or full environmental impact assessment and, when situated near Natura 2000 sites or sensitive areas, they may face additional restrictions. Until the new special zones for storage infrastructure provided under Emergency Ordinance No. 59/2025 become operational, permitting timelines may remain lengthy.

Finally, investment decisions are influenced by economic factors, including high upfront capital costs, relatively limited revenue streams and the absence of dedicated support schemes equivalent to those available to generation technologies. These elements mean that, although interest is high and the regulatory direction is positive, the near-term development of storage projects depends on continued market, grid and regulatory reform to ensure predictable and bankable deployment conditions.

In addition to regulatory and permitting aspects, storage developers in Romania should consider several practical and system-level factors. First, storage assets will play an increasingly important role in providing grid flexibility and balancing services, so early engagement with the transmission system operator (Transelectrica) and local distribution operators is essential to understand technical requirements, connection conditions and reinforcement needs. Network studies can significantly influence project design, sizing and timelines.

Commercial structuring is another key consideration. At present, revenue streams remain relatively limited, as tariff models, ancillary-service compensation and market rules for storage are still maturing. Developers should therefore carefully assess project bankability, including the potential to pair storage with generation assets or participate in future support mechanisms. In this context, clarity around the applicability of grid charges on charging and discharging cycles, as well as taxation, can be critical.

Environmental and land constraints may also impact project development. Depending on proximity to Natura 2000 sites or other protected areas, storage projects may require more extensive environmental analysis, and hydrogen-related facilities may trigger additional safety approvals. Even where accelerated procedures may become available within designated zones under Emergency Ordinance No. 59/2025, the effectiveness of these mechanisms will depend on the robustness of plan-level assessment and mitigation measures.

Finally, developers should factor in broader strategic trends, including increasing penetration of distributed generation, the rapid growth of prosumers and evolving system flexibility needs. These dynamics may reshape balancing markets, create new storage use cases and open the door to long-term commercial models as Romania’s renewable deployment accelerates.

Romania’s energy sector features several dominant players across production, supply, and large-scale purchasing. The degree of dominance varies by segment i.e., hydropower, wind, or solar, but a number of companies consistently stand out as market leaders.

In hydropower, Hidroelectrica remains the country’s largest renewable producer and one of the most influential players in the overall electricity market, given its substantial share of generation capacity and state-controlled structure.

In wind and solar, major market participants include international groups such as PPC Renewables, EDP Renewables, and ENGIE, all of which operate significant portfolios of onshore wind and solar projects.

On the purchasing side, dominant buyers also influence market dynamics. Large integrated supply and distribution companies, most notably PPC (formerly Enel), Electrica, ENGIE, act as major purchasers and suppliers of electricity, supported by their broad customer base. PPC is both a major purchaser and a producer through PPC Renewables, giving it a vertically integrated presence.

Despite the presence of these dominant players, the market is not a strict monopoly. The renewable-energy sector remains relatively fragmented, and continued growth, particularly in wind, solar, hybrid systems, and energy storage, has created meaningful opportunities for new entrants and medium-sized developers. Investment momentum and Romania’s long-term decarbonization targets continue to attract additional players into the sector.

Yes, there are several pro-competition and pro-market mechanisms in Romania’s regulatory and support framework that are (or can be) specifically to renewable-energy generators. However, the picture is mixed, some measures directly foster competition among renewables, other more broadly support investment, but together help reduce dominance and open space for new entrants.

The new CfD scheme is explicitly designed to support utility-scale renewables (wind and solar) in a competitive, market-based way. Under this scheme, producers compete in auctions to secure long-term, stable revenues for their output. By relying on competitive bidding rather than ad-hoc allocations, this mechanism helps level the playing field: smaller/new developers can compete for support, reducing barriers for new market entrants.

In addition, European-level programs play a major pro-competition role in Romania’s renewables sector. EU funding instruments such as the Modernization Fund provide substantial grants and financial support for renewable generation, grid upgrades, and energy-storage investments. Such programs are structured through transparent, competitive calls for projects, which open participation to a wide range of market actors—large utilities, independent power producers, SMEs, and local authorities.

In Romania, disputes in the renewable energy sector are typically resolved through litigation before the national courts, although arbitration is also increasingly used, particularly in high-value or cross-border transactions. The choice between litigation and arbitration largely depends on the nature of the dispute, the contractual framework, and the identity of the parties involved.

Commercial and contractual disputes arising between private entities i.e., engineering, procurement and construction (EPC contracts), power purchase agreements (PPAs), or operation and maintenance contracts (O&M) are frequently submitted to arbitration.

By contrast, regulatory and administrative disputes, including those related to licensing, grid connection, tariffs, environmental permits or regulatory sanctions fall under the jurisdiction of the Romanian courts.

Overall, while litigation remains the dominant forum for regulatory and administrative matters, arbitration is increasingly recognized as an efficient mechanism for resolving complex commercial and technical disputes in Romania’s growing renewable energy market.

In recent years, several high-profile disputes have arisen in connection with changes to Romania’s renewable energy support framework, both at the international arbitration level and before domestic administrative courts. These cases have been initiated by foreign investors under the Energy Charter Treaty and are being heard before the International Centre for Settlement of Investment Disputes (“ICSID”) in Washington.

At the international level, several proceedings have been initiated by foreign investors under the Energy Charter Treaty (“ECT”), following legislative amendments to Romania’s green certificate support scheme.

In January 2025, Romania obtained a significant victory in an arbitration case brought by 44 foreign investors involved in photovoltaic projects, who collectively sought over EUR 250 million in damages. The claimants, originating from several European Union member states, alleged that legislative amendments adopted between 2014 and 2018 had unlawfully reduced support under the green certificate system. The ICSID tribunal (Case No. ARB/20/35) dismissed all claims, finding that Romania had not violated any of its obligations under the ECT and ordering the claimants to reimburse part of Romania’s legal and arbitration costs.

Conversely, in March 2025, Romania lost another ICSID arbitration initiated in 2020 by a Cypriot company that owned and operated a wind farm in Dobrogea, with an installed capacity of 80 MW. The tribunal unanimously ruled in favor of the investor, which claimed approximately EUR 183 million in damages, finding that the abrupt changes to the renewable support legislation in 2013 amounted to a breach of fair and equitable treatment under the ECT.

In addition to these international cases, a number of domestic administrative disputes have also been brought before Romanian courts, typically concerning licensing, grid connection refusals or delays, and permitting. Although these disputes are generally smaller in scale than international investment claims, they remain significant for project timelines and investors certainty, particularly in the early development and operational phases of renewable energy projects.

Romania’s renewable energy landscape is currently experiencing strong and sustained growth. After a period of relative stagnation, the market has regained momentum and is now considered one of the most active and attractive in South-Eastern Europe.

The adoption of the Offshore Wind Law represents a major milestone, providing the legislative foundation for large-scale offshore wind development in the Black Sea and opening a new chapter for Romania’s energy transition. In parallel, the introduction of CfDs as the new support mechanism signals a shift towards a more stable, predictable and competitive investment framework. A supportive permitting regime for prosumer generation and self-consumption further supports market diversification and decentralization.

Despite these positive developments, the sector continues to face notable challenges, including limited grid capacity, particularly in high-renewable regions, as well as administrative complexity in permitting and land-use procedures.

Romania’s commitment to achieve climate neutrality by 2050, in line with EU decarbonization objectives, is a major driver behind the expansion of renewable energy. These targets are embedded in national strategic documents, including the Energy Strategy 2025–2035 and the National Energy and Climate Plan, which set ambitious milestones for increasing the share of renewables in gross final energy consumption. As a result, regulatory reforms, support schemes and public investment programs are increasingly designed to accelerate deployment of wind, solar, hydropower, energy storage and emerging technologies such as green hydrogen.

Net-zero obligations have also prompted structural measures: modernization of transmission and distribution infrastructure, the introduction of competitive mechanisms (such as CfDs) to mobilize private capital, and the development of “renewables go-to areas” to streamline permitting under the updated RED III framework. At the same time, rising expectations on corporate sustainability and ESG performance are contributing to strong investor appetite, particularly for bankable greenfield capacity and hybrid generation-storage solutions.

Overall, Romania’s net-zero trajectory is reinforcing the central role of renewables in its future energy system, anchoring long-term policy stability and shaping a forward-looking pipeline of projects that extend well beyond 2030.

TZA Answer: Over the next 12 months, several developments are expected to shape Romania’s renewable energy landscape, both at regulatory and market level. A key focus will be the implementation of the first competitive support scheme based on CfDs, including the launch of allocation rounds for new wind, solar and hybrid projects. These tenders are anticipated to set reference prices, eligibility criteria and technical conditions for bankable utility-scale investments, and will be closely watched by developers and financiers.

On the legislative side, the recent Emergency Ordinance No. 59/2025 is expected to trigger secondary regulations and practical guidelines, including (i) the preparation of coordinated renewable potential mapping, (ii) the designation of “go-to” areas for accelerated permitting, and (iii) the introduction of dedicated zones for grid and storage infrastructure. These measures aim to streamline environmental and planning procedures while remaining aligned with RED III requirements.

Further regulatory action is also expected to support grid integration and capacity planning, most notably through the entry into force of ANRE Order No. 53/2024 on network capacity allocation, and continued amendments to connection and balancing rules to reflect the growing share of intermittent sources and emerging storage solutions. Discussions are also advancing on future rounds of CfD tenders, offshore wind legislation, and financing instruments under EU and national programs.

In practical terms, the next year is expected to bring greater clarity on siting, permitting and support mechanisms, thereby facilitating project bankability and enabling a pipeline of new renewable capacity to progress toward final investment decisions.

Participants in Romania’s renewable energy industry operate in a generally supportive and rapidly evolving regulatory environment. However, successful project development requires close attention to administrative, technical, and market challenges that can significantly affect project timelines, costs, and bankability.

A key priority for developers is to secure early grid connection rights. As noted above, Romania is preparing to introduce a public tender mechanism for grid capacity allocation starting in 2026, while, for now, capacity continues to be granted on a first-come, first-served basis. Given existing network constraints, early engagement with the transmission and distribution system operators is essential to ensure project viability.

Another critical area concerns permitting and administrative procedures, which involve multiple layers of authorities (i.e., local authorities, environmental protection agencies). Developers should anticipate procedural complexity and allocate sufficient time to obtain all necessary approvals.

The main sticking points in Romania’s renewable energy market include grid congestion and limited network capacity in high-renewable regions such as Dobrogea and Banat, as well as administrative fragmentation among different permitting authorities, leading to delays. Additional challenges stem from regulatory uncertainty, as national legislation continues to align with evolving EU energy and climate rules.