Romania is in the midst of a significant energy transformation. According to Liviu Tanase, Vice President of the Construction Employers’ Association and Director of Sisteme HVAC, the country has made rapid progress since its green transition in 2008 and now boasts a diverse mix of natural resources, including gas, solar, wind, and hydropower.
«Currently, we have up to 80 GW of projects at various stages of development, of which 50 GW already have grid connection permits. This is a significant figure, especially considering that the difference between production and local consumption is 2 to 2.5 GW,» Tanase explains in conversation with Energía Estratégica España, emphasizing that this renewable wave is primarily focused on solar photovoltaics.
However, the country faces a risk of energy cannibalization due to the installation of 2 GW of photovoltaic systems at the prosumer level.
One of the most significant challenges is the volatility of electricity prices, especially in the balancing market. «Off-peak prices exceeding €5,000/MWh have been recorded, highlighting growing pressure on the grid,» the consultant states. In light of this issue, Tanase considers the integration of Battery Energy Storage Systems (BESS) indispensable. «Photovoltaic projects that do not incorporate storage will not be able to properly manage imbalances or negative prices during peak hours,» he stresses.
«A key advantage of Romania’s energy market is that the Transmission System Operator (TSO) has published a map showing all available and developing grid capacities in different areas, enabling investors to manage grid connection risks and focus on regions with high network availability,» the expert emphasizes.
Energy Storage: A Key to Addressing Cannibalization
Battery storage systems (BESS) are crucial for addressing the challenges of energy decentralization and price fluctuation, providing flexibility to the grid in a decentralized electricity system and optimizing electricity prices. «The transition from synchronous to asynchronous equipment, along with the downsizing of production capacity scales, compels us to integrate storage systems,» Tanase notes.
The specialist highlights that Romania already offers subsidies to encourage the hybridization of renewable projects, such as the €150 million program launched by the Ministry of Energy. However, he points out two main barriers: technical regulations and the lack of specialized financial products.
To boost the storage sector, Tanase suggests that the TSO, the grid operator, must adjust technical regulations for energy flow analysis and grid modeling, considering storage capacities with zero or low load factors.
«Currently, storage systems are considered with a 100% load factor, either on the consumption or production side, depending on the specific area where they are installed,» he explains.
Regarding financial challenges and the lack of banking products designed for a market-based approach, he highlights the need to deregulate the market, diversify technologies towards alternatives such as green hydrogen and green ammonia, and encourage the banking sector to fund storage projects based on a market-driven approach. «Practically, it is impossible to conclude a PPA for a standalone BESS system,» he notes.
Urgent Investments in Power Grids
Romania’s power grids require substantial investments to support the energy transition, and Tanase stresses that these investments are «still insufficient,» particularly in distribution. According to a study by the distribution system operators’ association (DSO), €9 billion is needed between 2025 and 2030, while the approved budget amounts to only €2.2 billion.
«Investments in power grids are necessary; they should focus on digitizing metering points already in process, closing the transmission loop to transfer energy produced in southern Romania to the northwest, and increasing interconnection capacity, especially with Ukraine,» he emphasizes.
HVAC plans to drive investments in power grids and commission 2 GW of renewable projects and 1 GW of storage over the next three years. Additionally, they participate in conferences and educational programs to promote best practices and develop Romania’s energy market.
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