Romania’s unprecedented surge in electricity imports, hitting a record 5.03 TWh last year, signals a energy system under duress, grappling with a myriad of challenges that offer valuable insights for the broader energy sector. The long-term drought’s impact on Hidroelectrica’s production, coupled with the dwindling number of coal-fired power stations and peak summer consumption, forced the country to rely heavily on imports, sounding alarm bells for the industry.
The silver lining lies in the recent commencement of several new production units. However, the system’s long-term stability hinges on investments worth billions of euros to address deep-seated structural issues. Transelectrica faces the urgent task of upgrading both national and transnational grids, with a focus on bolstering transmission capacity. Distribution grids, many of which are outdated, require not only network upgrades but also modernisation and efficiency improvements. This includes enhancing the capacity to integrate energy produced by prosumers—households or businesses that both consume and produce energy.
Power producers, notably Hidroelectrica and Nuclearelectrica, are in dire need of upgrades and massive investments to develop new production capacity. This encompasses photovoltaic and wind farms, as well as new nuclear and hydropower plants. Experts peg the investment required at a minimum of EUR 10 billion over the coming years. This funds would not only modernise and improve the efficiency of the existing system but also replace the energy output of coal-fired power plants with new, sustainable production capacity.
Valentin Zaharia, Development Director at Veolia Romania Integrated Solutions, underscores the challenges Romania faces in adopting renewable energy. “One major obstacle is the need to upgrade existing infrastructure to facilitate the transition to renewables. Integrating new technologies requires significant investment and a cohesive national strategy. Additionally, bureaucratic constraints continue to delay the timely implementation of such projects,” he notes.
Lucian Enaru, Country General Manager at Schneider Electric Romania, envisions a more decentralised, resilient, and sustainable energy sector for Romania. He highlights the role of microgrids in enabling local energy generation and reducing reliance on centralised grids, which are more vulnerable to economic and geopolitical disruptions. “These solutions will support communities and businesses in achieving energy security and financial stability by mitigating price volatility,” Enaru explains.
However, integrating prosumers into the grid presents its own set of challenges. Last year, household photovoltaic systems surpassed 1.5 GWh in production capacity, exceeding the grid’s ability to absorb the surplus energy. With prosumers now approaching 2 GWh, the complexity of grid integration has only increased. Ensuring the grid can absorb, redistribute, and efficiently manage this energy surplus requires substantial investment in infrastructure and technology.
Zaharia points to hydropower, wind, and solar energy as Romania’s most promising options for 2025 and beyond. He also highlights innovative solutions like Geoexchange, which utilises surface geothermal energy and high-efficiency heat pumps to provide heating and cooling for residential, commercial, and industrial buildings. This system can achieve high energy efficiency and optimised consumption standards, making it one of the most competitive green energy solutions available.
Enaru notes that while Romania’s energy sector has made progress, it still requires significant adaptation to withstand economic challenges. Its key strengths include a diverse mix of energy sources and the growing adoption of renewable energy. However, the central grid’s dependence on aging infrastructure makes it vulnerable to shocks such as rising energy demand, geopolitical crises, or economic downturns.
The automotive industry, steadily shifting towards electric engines, is another key sector for long-term sustainability. Alin Ioanes, CEO at Rombat, highlights the challenges and opportunities presented by this shift. He emphasises the need for fiscal, legislative, and regulatory stability to prevent disruptions to business plans and scheduled investments.
The implications for the broader energy market are profound. Romania’s experience highlights the urgent need for investment in infrastructure and technology to facilitate the transition to renewables. It also underscores the importance of decentralisation and the integration of prosumers into the grid. Moreover, it serves as a reminder of the interconnectedness of different sectors, such as automotive, with the energy industry.
As Romania navigates these challenges, its