Romanian TSO Transelectrica releases updated grid allocation regulations for 2026.

Romanian electricity transmission system operator (TSO) Transelectrica has introduced new regulations for its grid allocation system, which outline the timelines for auctions through which the government will grant contracts for new energy generation initiatives.

The regulations are designed to “facilitate the integration of new electricity generation capacities, particularly from renewable resources,” as stated by Transelectrica, by standardizing the application process for developers seeking project approvals.

Effective next year, the new rules will apply to new generation projects of at least 5MW capacity, capacity expansions of at least 5MW at existing facilities—including the integration of battery energy storage systems (BESS)—and new generation and storage projects of at least 5MW at current consumption sites.

On January 15, Transelectrica will disclose the available capacity for new generation projects over the next two years across the country’s five regions, detailing the capacity open for bidding by new projects. Developers can submit project applications from January 16 to February 28, and either Transelectrica—for projects over 50MW—or local distribution system operators (DSOs) will publish a list of applications by March 15.

By June 15, Transelectrica is set to announce ‘starting prices’ for the bids—estimated values for supplementary work divided by the total available capacity—followed by auctions for the offered capacity on July 1, using these starting prices for negotiations. The new regulations also outline four scenarios for conducting the auctions, depending on whether the available capacity is oversubscribed; in cases where the capacity exceeds the bids or there's moderate oversubscription, all successful applicants will secure their requested capacity.

Should the bids surpass the available capacity, the TSO will determine which bids are accepted, allowing unsuccessful bidders to reapply the following year. If there’s a significant excess of bids in one year, capacity intended for the subsequent year's bids may be advanced to enhance the available capacity for the current year's competition, with negotiations starting from a higher base price.

A more ‘modern’ bidding process

The formalization of the bidding process and timeline is expected to benefit the Romanian solar sector; Horia Grigorescu, a managing partner at MHG Consulting, noted on LinkedIn that the new approach is a more “modern” method for enhancing Romania’s renewable energy capacity.

“Romania’s new grid allocation system will transform investment timelines, project economics, and who ultimately has the opportunity to build starting in 2026,” Grigorescu remarked. “Romania has transitioned to a modern, EU-standard system that is more stringent, equitable, and predictable.”

This reform coincides with record activity in Romania’s solar sector, which anticipates the addition of approximately 1.7GW of new capacity in 2024. In August, the government awarded 1.4GW of new solar capacity in its second Contracts for Difference (CfD) auction, vastly surpassing the capacity granted in the previous year’s oversubscribed CfD round.

This year has also marked the operational start of Econergy’s 87MW Oradea project and Shanghai Electric’s announcement of plans to construct a 342MW project in the country.

By clarifying milestones and timelines for the application process, the new regulations aim to mitigate risks associated with investments in Romania’s solar sector and stimulate increased private sector investment, along with institutional financing that has been announced elsewhere.

Today, the European Bank for Reconstruction and Development (EBRD) revealed plans to invest €192 million (US$222.6 million) into a 531MW solar portfolio in Romania.