Romania closed 2024 with a historic achievement for the photovoltaic sector, reaching 5 GW of installed capacity, a significant increase compared to the 3.2 GW recorded in 2023. The sector registered its second consecutive year of GW-level growth, consolidating solar energy as the fastest-growing renewable segment in the country.
According to the Romanian Photovoltaic Industry Association (RPIA), the main driver of this growth remains distributed generation, with over 170,000 prosumers accounting for 2.2 GW of installed capacity.
However, the development of large-scale solar projects is also beginning to materialize. «In 2024, 600 MW of new solar projects were completed, an increase of more than 100 MW compared to 2023,» they told Energía Estratégica España.
Expectations for 2025
Looking ahead to 2025, Romania’s photovoltaic sector projects an additional 2 GW of installed capacity, with 1 GW dedicated to large-scale projects and 1 GW to self-consumption. According to official data, 1.6 GW are currently in various stages of development.
The RPIA highlights that the number of completed projects could even exceed initial expectations, positioning the country to meet and possibly surpass the targets set in its National Energy and Climate Plan (NECP).
«While development speed depends on factors like financing, we are seeing a steady decline in the levelized cost of electricity (LCOE) for photovoltaic projects,» RPIA explains. However, they warn that costs could stabilize or even rise due to global economic fluctuations.
To solidify 2025 as a pivotal year for Romania’s renewable energy sector, the existing regulatory framework must be strengthened. Significant progress has been made, with average timelines of 1.5 to 2 years from authorization to grid connection.
«Measures should be implemented to increase accountability in cases of delays, with stricter deadlines, penalties for non-compliance, and transparent reporting mechanisms,» they add.
Additionally, the RPIA emphasizes the importance of Romania advancing toward membership in the Association of Issuing Bodies (AIB). This step would allow guarantees of origin to be traded beyond its borders, expanding the buyer base in the power purchase agreement (PPA) market and attracting greater investment.
Key Milestones of 2024
The year 2024 was a standout for renewables in Romania, particularly for the photovoltaic sector, which was supported by key measures that encouraged both investment and operationalization of new projects.
The RPIA underscores the update of the National Energy and Climate Plan (NECP) and the Energy Strategy as crucial steps for advancing renewables.
The country increased its renewable energy targets from 30.7% to 38.3% by 2030, and to 44% by 2035. Solar energy’s target was raised from 5 GW to 10 GW by 2030, including 6.4 GW from large-scale projects—a 4 GW increase from the current capacity—and 3.5 GW from prosumers, a goal that the association predicts will already be surpassed by 2025 with current installation levels.
«In this framework, the plans include measures to improve transmission and distribution infrastructure, facilitating the integration of new renewable capacities in the coming years,» RPIA states.
Another important milestone was the amendment to the connection regulations in August 2024 via Order 53/2024. This regulation conditions the issuance of new connection permits exceeding 1 MW on the payment of a guarantee equivalent to 5% of the connection fee.
«With this update, the National Regulatory Authority (ANRE) sought to reduce bottlenecks caused by long queues of requests, many of which never materialize. This 5% guarantee is a first step toward modifying the connection process,» they explain.
«Starting in January 2026, ANRE plans to replace the ‘first come, first served’ rule with auctions for grid space allocation, ensuring that requests lead to concrete capacities. While we cannot fully assess the implications of this change yet, we maintain an ongoing dialogue with ANRE to ensure the auctions function properly,» they add.
Additionally, in November, legislation on energy storage was updated, removing fiscal barriers for storage systems. This allowed an increase in capacity from 10 MW (20 MWh) to 137 MW (269 MWh) in just one year.
In December, regulations for dual land use were approved, enabling solar projects on grasslands with the partial removal of these areas from agricultural use, facilitating the development of new large-scale installations.
The Impact of CfD Auctions on Solar Development
The Contracts for Difference (CfD) system was a key element in 2024, with a 1.5 GW auction, of which 1 GW was for wind and 500 MW for solar. In its first auction, 50 companies participated, and 21 were qualified (10 for wind with 1,096 MW and 11 for solar with 432 MW).
In terms of prices, the weighted averages for wind and solar were €65/MWh and €51/MWh, respectively, significantly below the ceilings of €82/MWh and €78/MWh.
«Although lower than expected, these results reflect confidence in the market’s stability and predictability. For solar, competition was intense, with 11 winners out of 36 applicants, further reducing prices compared to wind,» the association analyzes.
For 2025, a second auction is expected to allocate 3.5 GW (2 GW for solar and 1.5 GW for wind), consolidating the CfD model as a driver of large-scale utility projects.
«Based on the success of 2024, we are optimistic about achieving similar results in this new round. The CfD mechanism offers price stability and long-term revenue prospects. Therefore, we anticipate the materialization of new large-scale projects complementary to the 5 GW total that will be auctioned,» they emphasize.
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