Romania’s National Energy Regulatory Authority (ANRE) has approved a competitive, auction-based mechanism for grid connections of new plants of at least 5 MW. The new rule will come into force from January 1, 2026.

The approved methodology mirrors the process outlined in draft proposals published earlier this year. It will see auctions held on a yearly basis, offering 10-year allocation periods commencing from the second year after the auction.

Romania’s transmission system operator, Transelectrica, will determine and publish the available capacity for each zone of the grid by January 15 of each year. Then from July 1, Transelectrica will organize daily auction sessions, with starting prices calculated by dividing the total estimated value of the grid development works by the total available grid capacity.

George Niculsecu, ANRE president, has said the new methodology “promotes a mechanism that ensures a competitive environment that offers better predictability in the energy system.”

ANRE has also made several immediate changes to Romania’s grid connection processes, including new rules for financial guarantee. Previously required before concluding a connection, the guarantee is now a prerequisite for issuing any new grid connection permit above 1 MW and amounts to 5% of the connection tariff.

The guarantee, which can take the form of a bank guarantee, term deposit, or direct payment, can be enforced by the grid operator if the connection agreement is not signed, payments due under it are not made, building permit is not obtained by the legal deadline, the project is not completed by the connection agreement deadline or the investor renounces the project.

The change applies to all ongoing applications for which grid connection permits have not been issued, not just future applicants. Lawyers from Bucharest-based law firm Nyerges & Partners say the changes make the financial guarantee “an efficient instrument that limits the artificial grid blockages caused by unfeasible projects or those lacking financing sources.”

Other immediate changes approved by ANRE cover grid calculations at the project testing stage, mandating grid operators to submit monthly updates on grid status and offering 12-month building permit extensions, conditional of delays outside investors’ control and a financial guarantee of 5% of the connection tariff.

ANRE has also ordered that any ongoing grid connection application without an issued permit will be terminated on January 1, 2026, as the new auction comes into force. “Given that the timing for completing the grid connection process is largely outside investors’ control and significant delays are common, this principle poses high risks for initiating new investments,” lawyers from Nyerges & Partners say. “This obligation is expected to incentivise grid operators to expedite the connection process.”

The Romanian Photovoltaic Industry Association said it expects the nation to add at least 3 GW of renewables by 2026, with solar accounting for around 2 GW of the total. Statistics from the International Renewable Energy Agency show that Romania had 1,414 MW of solar installed by the end of 2022.

In July, Romania’s parliament adopted a bill mandating prosumers with PV systems with capacities from 10.8 kW to 400 kW to install energy storage systems.