Romania proceeds with first grid capacity auction

Romania’s first grid capacity allocation window closed with 491 MW of applications, with the capacity set to be created through future network reinforcements. 

Work on developing an auction-based grid connection mechanism for power plants above 1 MW in Romania began in early 2024 before the country’s National Energy Regulatory Authority (ANRE) approved plans for the first grid capacity auction to go ahead this year in August 2024.

The first auction kicked off with Romania’s transmission system operator, Transelectrica, conducting a study to identify the available grid capacity across the country’s grid zones without considering future reinforcement works.

Irene Mihai, Policy Director at the Romanian Photovoltaic Industry Association, told pv magazine this phase of work has been completed, with the study identifying 0 MW of available grid capacity through to 2037.

“This may, however, change next year, as non-viable grid connection permits exit the system,” Mihai explained.

Following the study, a 14-day window at the start of July opened for prospective participants in the grid capacity auction to state their intention to take part.

Data available on Transelectrica’s website confirms 12 applications for grid capacity were made across seven of Romania’s ten grid zones, requesting a total 491 MW. Connection requests were made for years 2028 through to 2033, across prospective solar, wind and storage projects.

Mihai confirmed that based on the received requests during this second phase, Transelectrica is now conducting another study to determine the available grid capacity with reinforcement works. 

“The participation guarantee at the expression of interest stage will be returned only if the bid is not a winning one or if the connection agreement was signed. Given that the received requests will impact the second phase of the study, this filtering mechanism was introduced to so that the auction starting prices will reflect the real connection needs” Mihai explained, in reference to the €20,000 ($23,000)/MW participation guarantee that applicants were required to submit with their interest as part of plans to reduce speculative projects.

Mihai added that from 2027 onwards, the participation guarantee for these auctions will be established as the minimum of €20,000/MW and the weighted average of the contract prices from tenders completed in the preceding year. “For example, if the resulting weighted average from the 2026 tender is €17,000/MW, then in 2027, the participation guarantee is €17,000,” she said.

Mihai added that the core idea behind the auctions is for the mechanism to act as a means of financing future network reinforcement and expansion works.

She explained that it is the responsibility of Transelectrica, for projects above 50 MW, and for Romania’s distribution system operators, for projects under 50 MW, to ensure the applicant can connect to the grid in the year they were awarded the rights to. 

“Otherwise, they will need to pay 0.01% per day of delay, applied to the amount paid in full by the developer for the allocated capacity, until the additional power grid development works are put into operation,” Mihai explained.

Mihai told pv magazine that the earliest connection requests made during the expressions of interest, for 2028, amount to 140 MW, which she believes is feasible to prepare for in time.

“Over the years after, it may be the case that existing grid permits are expiring and they are going to unlock available capacity without additional works,” she added. “The core idea is that the penalties are an accountability mechanism and an incentive for the grid operators to do the work.” 

Transelectrica’s updated study covering the required grid reinforcement works is expected in September, Mihai explained, which will inform the starting price of the auction. Bidding for the grid capacity allocations is set to take place beginning October 30.

Grid capacity auctions are set to run annually in Romania but will operate under a different timeline, that was agreed upon late last year, from next year onwards. 

Romania recently surpassed 8.5 GW of installed solar capacity with additions over the first six months of 2026 totaling around 1.8 GW.