Romania faces energy storage, grid bottlenecks as renewable generation expands - analysis

The summer of 2026 exposed vulnerabilities in Romania's energy system as rapidly expanding renewable capacity outpaced investment in storage, grid infrastructure and flexibility, according to an analysis released on Wednesday by economic consultancy Frames.The problem is not a long-term shortage of generating capacity, but the difficulty of balancing production and consumption and shifting electricity from periods of surplus to times of peak demand, the analysis said."When hydropower declines because of low flows on the Danube, when high temperatures push consumption up during peak hours and when solar production falls in the evening, the system comes under pressure. Imports and technical reserves have to step in. This is not a long-term generation crisis. It is a problem of synchronising production, consumption and the ability to shift energy over time," Frames said.On June 29, during a heatwave, Romania recorded some of Europe's highest day-ahead electricity prices, exceeding 4,200 lei/MWh during evening hours.Several weeks later, prolonged drought led to the successive shutdown of both reactors at the Cernavoda nuclear power plant. For the first time in 23 years, Romania was temporarily left without nuclear generation, which normally accounts for around one fifth of the country's electricity.Low Danube levels also reduced hydropower generation at the Iron Gates plants. On some critical days, the Romanian system generated only 6.9 GW despite having almost 19 GW of installed capacity, according to the analysis.Investment in energy storage, back-up gas-fired generation and transmission grid upgrades has advanced much more slowly than renewable capacity, while the European Commission has identified Romania's transmission and distribution networks as a major vulnerability."In short, we built the engine but not the fuel tank. Abundant solar power at midday could not be stored for the evening peak, when consumption rises and photovoltaic production falls," Frames manager Adrian Negrescu said.The analysis highlighted as an example the hybrid renewable energy project being developed by Austrian company Enery at Ogrezeni, Giurgiu County, described as one of Europe's largest solar-plus-storage projects.The project combines 761 MWp of photovoltaic capacity with a 534 MW/1,068 MWh battery storage system, representing a total investment of around 460 million euros.Once completed in 2027, the facility is expected to generate 1.4-1.5 TWh annually, equivalent to the consumption of around 684,000 households."Ogrezeni illustrates the direction that is needed: projects that no longer sell only megawatts of raw generation, but also flexibility - the ability to shift energy from periods of abundance to hours of shortage. Every month of delay on such projects translates into peak hours covered by expensive imports instead of locally stored energy," the analysis said.At the same time, completion of units 3 and 4 at the Cernavoda nuclear power plant could increase nuclear power's share of Romanian electricity consumption from around 18%-20% to approximately 30%.Romania's roughly 1,900 MW of coal-fired capacity is due to be phased out by the end of 2030 at the latest under commitments made through the country's National Recovery and Resilience Plan (NRRP).Frames said regulatory and market constraints were another structural bottleneck, particularly for demand-response mechanisms under which large industrial consumers are paid to reduce or shift consumption during critical periods.Romania's energy regulator ANRE has announced that the country is becoming the first EU member state to adopt an explicit payment mechanism for reducing electricity demand. Frames said the key question would be how quickly and effectively it could be implemented for energy-intensive industries such as steel, cement and chemicals.Grid modernisation remains another major challenge, with congestion potentially limiting the benefits of renewable and storage projects already being developed.The government has also announced the installation of around 800,000 smart meters capable of measuring electricity consumption in real time. Once the project is completed, dynamic electricity pricing could be introduced, allowing consumers to shift household appliance use or electric-vehicle charging to periods of abundant solar generation.According to initial estimates cited in the analysis, consumers adjusting their electricity use in this way could save between 10% and 20% on their annual bills.Frames is an economic think tank specialising in economic analysis and market research.