By Paola Pedraza

Energy security in Eastern Europe has become one of the most pressing issues in today’s geopolitical landscape. The need to electrify economies, modernize electricity grids, and strengthen regional interconnection is increasingly evident. In this context, the strategic combination of investment, regulation, and energy diversification becomes essential to ensure a stable and sustainable supply.

Romania’s commitment to renewable energy is clear in this region: 3 GW of installed wind capacity, 1.4 GW of solar, and a goal of 1 GW in offshore wind by 2030, along with storage solutions and the controlled integration of natural gas, as part of a plan to achieve a modern, resilient, and competitive electricity system. High-potential areas like Dobrogea stand out for their coordination between public and private actors and the use of smart technologies that are paving the way toward a safer, cleaner energy future.

To delve deeper into these challenges and opportunities, Review Energy spoke exclusively with Ionela Cuciureanu, international advisor to former Energy Minister Sebastian Burduja, who offered a detailed view of Romania’s energy roadmap.

Dobrogea: Romania’s wind power hub bets on modern infrastructure and smart technologies

According to Cuciureanu, Dobrogea has “one of the best wind potentials in the country,” but its grid has been under strain due to limited transmission capacity. To solve this, new 400 kV lines are being built and substations modernized, with the goal of adding 1,700 MW of capacity and 480 km of infrastructure. Nearly 28% of Transelectrica’s investment plan is dedicated to integrating renewables, supported by European funds. In addition, advanced technologies such as STATCOMs, digital monitoring, and battery storage are being deployed to stabilize voltage and improve reliability.

Bureaucratic barriers are also being dismantled, with permits being fast-tracked and key projects designated as “of national importance.” Early coordination between developers and grid operators is essential. Cuciureanu highlights: “Non-reimbursable EU are financing about 17% of the grid investment budget through 2030.” However, she warns that distribution grid investment depends on what the regulatory authority allows within the tariff framework.

Despite the rollout of clean energy, gas remains a fundamental part of the energy mix. The development of the Neptun Deep project positions Romania as a key future gas producer within the European Union. To ensure that this progress complements rather than hinders the expansion of renewables, the expert argues that the project “is the turbo of the country’s clean energy engine.” With an estimated production of 8 billion cubic meters per year, it will make Romania the EU’s largest gas producer by 2027. This gas will act as a flexible backup for renewables, allowing the country “to replace aging coal plants and support renewables during peak demand or low generation periods.” It serves “as a bridge” to ensure grid reliability and accelerate decarbonization.

Romania’s commitment to renewables remains strong: successful auctions have already been held for more than 5 GW in solar and wind projects. Additionally, Cuciureanu notes that “gas and renewables serve complementary roles.” Part of the gas revenues will be allocated to modernize the grid, develop green hydrogen, and finance the Modernization Fund. Romania’s vision is clear: to use every resource—including Black Sea gas—as a “catalyst: it strengthens the economy and energy security,” without giving up on its climate goals or the European Green Deal.

New storage rules could attract investor confidence

Recently, Romania’s energy regulator (ANRE) approved methodological rules to eliminate double taxation on energy that is stored and later re-injected into the grid—a long-awaited decision that could boost the development of storage capacity and, with it, the security and flexibility of the national energy system.

Cuciureanu expects that “this regulatory tweak will accelerate Romania’s nascent storage market in the next 1-2 years,” potentially increasing investor confidence and speeding up the pace of new projects.

“The regulatory change– exempts electricity that is stored and then fed back into the grid from paying transmission, distribution, and system services tariffs a second time. In essence, those extra charges that made using a battery or pumped storage economically punitive were abolished. This was a significant obstacle until now; storage operators were effectively paying grid fees twice (once when charging and once again when discharging), which severely squeezed project revenues. Eliminating that burden immediately improves the business case for batteries and it sends a clear signal to investors,” she explains.

However, Cuciureanu adds: “A non-neglectable challenge lies in the fact that it might have been wiser to impose a minimum storage capacity threshold, because as it stands, a major generation unit could theoretically install a 500MW battery and connect it to the grid without incurring any fees—though “fee-free” merely means that those costs are socialized and ultimately borne by all local consumers.”

Currently, Romania is experiencing significant growth: total battery capacity reached nearly 400 MWh by mid-2025. “With the double-taxation barrier removed, that number should climb much more rapidly,” the expert anticipates. Additionally, a wave of applications is expected for financing programs, such as the €500 million Modernization Fund.

According to Romania Energy Grid, the country aims to reach over 4,000 MWh in new storage capacity, supported by substantial EU funding through the Recovery Plan and the Modernization Fund.

For Cuciureanu, this goal is ambitious, and its integration is being carefully planned to maximize benefits for the electricity grid. She explains that many of these installations will be co-located with renewable plants, allowing them to absorb surplus generation and release it during demand peaks. This “would be to smooth out the renewable output and reduce curtailment”, increasing system flexibility. Guidelines are also being developed to allow up to 25% storage capacity in new solar and wind projects by 2027.

The expert also notes that Transelectrica will adapt its systems so batteries can actively participate in “balancing markets,” with instant response capacity to frequency deviations. She adds that the new capacity will be split between Battery Energy Storage Systems (BESS), geared toward short-term fluctuations, and Pumped Hydro Storage (PHS), which will serve as the system’s “long-duration backbone.” Together, these solutions will strengthen stability, facilitate more renewables, and bolster national energy security.

Market mechanisms: Key to long-term storage viability

Market mechanisms will be essential to ensuring the long-term viability of energy storage in Romania. Although EU subsidies are supporting the current deployment, Cuciureanu explains that “these projects need sustainable revenue streams from the market to remain profitable.” For this reason, market rules are being adjusted to allow batteries to fully participate in balancing and ancillary service markets, generating revenue through frequency regulation, fast response, and voltage support.

Additionally, the creation of a capacity market is under consideration, where storage would be rewarded simply for being available during critical times—even if it is not dispatched.

However, she warns that market design must evolve to reflect the value of flexibility. While some regulatory adjustments may limit imbalance-related income, a structured incentive mechanism will be key to maintaining profitability. In short, the future of storage in Romania depends on its ability to combine income from arbitrage, balancing, and capacity. The goal is to build an energy market that fully values flexibility and allows new players to compete, following European recommendations to remove barriers and ensure a sustainable business model beyond initial subsidies.

Romania’s renewable future looks bright

Romania is currently advancing a comprehensive regulatory agenda to attract private investment in clean energy and grid flexibility. According to the expert, one of the most important reforms is the introduction of Contracts for Difference (CfDs) for large-scale renewable projects. The first auction in 2024 awarded 1.53 GW with 15-year guaranteed prices, and a second round in 2025 offered an additional 3,472 MW. With strike prices of €80/MWh for wind and €73/MWh for solar—and more flexible rules—this €3 billion scheme funded by the Modernization Fund aims to support up to 5 GW of new capacity. “This type of contract mitigates market risk and has already reignited international interest,” the expert states.

Another key reform was reinstating Power Purchase Agreements (PPAs) for new projects, which had been banned between 2012 and 2020. This decision unlocked financing for renewables and has led to a rise in signed PPAs. The solar self-consumption cap was also raised to 400 kW, benefiting the commercial and industrial sectors. With these measures—CfDs, PPAs, and net metering—Romania offers investors multiple market entry points, reducing risk and strengthening the clean tech and flexibility ecosystem.

In a European context marked by climate urgency and the need for energy independence, Romania is positioning itself as a key player in the energy transition of Eastern Europe. Through a strategic mix of regulatory reforms, public and private investment, and strong technical planning, the country is creating the conditions to massively integrate renewables, storage, and flexibility technologies.

As Cuciureanu emphasizes, these transformations aim not only to modernize the energy infrastructure but to ensure a system that is more resilient, competitive, and aligned with the goals of the European Green Deal. Romania is proving that a clean energy future is possible when there is vision, coordination, and political commitment.