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Romania Renewable Energy Storage Regulations: Key Insights for Investors
- Cristina Tudor
- Oct 9
- 4 min read
Romania is increasingly recognizing the crucial role of energy storage in supporting renewable generation, grid stability, and energy security.
For investors considering projects here, understanding the local legal regime is essential —laws are evolving fast, new incentives are being offered, and some risks still exist.
Outlined below are the key regulations, incentives, challenges, and opportunities in Romania as of late 2025..
The Romanian Legal & Regulatory Landscape for Energy Storage
According to the law, energy storage represents the process of converting electrical energy into a form of energy that can be stored for the purpose of postponing its use to a moment subsequent to its generation, and the subsequent reconversion of that stored energy into electrical energy for its use in another energy vector or for delivery into the electricity networks.
Here are the main laws and regulatory actions that currently shape the storage sector:
Regulation / Policy | Key Provisions | Implications for Investors | ||
GEO 134/2024 (Government Emergency Ordinance) | Eliminates double taxation of stored electricity: stored electricity re-injected into the grid is exempt from several regulated tariffs and fees 1) - transmission service tariff (transmission – extraction component, distribution, system services), 2) - green certificates fee, 3) - cogeneration fee. | Dramatically improves project economics. Reduces operating costs for storage operators. Investors can more accurately forecast revenue streams because a significant cost barrier has been eliminated. | ||
Law no. 316/2024 | Under the current Romanian legislation, prosumers are no longer required by law to install energy storage systems alongside their photovoltaic (PV) installations. Previous legislative drafts introduced such an obligation for systems between 3 kW and 400 kW, with compliance deadlines until the end of 2027. However, the final version adopted by Parliament removed these mandatory storage requirements. | Although the installation of storage systems is now voluntary, the measure opens a significant investment opportunity for companies active in the development of battery storage, hybrid PV-battery systems, and smart energy management solutions. The growing number of prosumers in Romania and the pressure on grid balancing mechanisms create a strong market incentive for private investment in residential and commercial energy storage, even without a direct legal obligation | ||
Targets & Capacity Needs | Romania has set targets to deploy ~5 GW of energy storage by end-2026, according with the public available data. There is also a publicly stated need for at least ~4,000 MW of storage capacity by 2030 (half from batteries and half from pumped-storage hydro). | Romania offers a high investment potential in the energy storage sector, as the government is actively pushing for the rapid deployment of storage solutions. There is strong and growing demand for both battery-based systems and pumped hydro storage projects. Investments that are aligned with the National Energy Strategy and EU decarbonization targets are expected to receive greater institutional support. | ||
State Aid & Funding Schemes | €150 million program under Modernization Fund for behind-the-meter battery storage in conjunction with existing renewable installations. | Financing support reduces CAPEX burden. Competitive tenders: need good proposals. Investors should align with eligibility criteria (renewables integration, behind the meter, efficiency). Understanding of state aid rules will be important. | ||
The full report released by the European Market Outlook for battery storage can be accessed here.
For further details, reach out to our legal expert
or
Opportunities for Investors in Romania
Improved financial viability because removal of double tariffing lowers the cost of storage operations.
State aid and grants are available, both from EU funds and national schemes. These can help with CAPEX, especially for battery storage.
Large scale/hybrid projects: Considering the power capacity targets and the need for pumped hydro storage (e.g. Tarnița-Lăpuștești), there's opportunity for large projects, both battery and hydro storage.
Risks, Uncertainties & Things to Monitor
Uncertainties in tariff & grid rules: While double taxation is removed for stored energy fed back into the grid, electricity used for internal consumption (losses, operational needs) is still subject to standard fees. Clarity needed on net metering, grid connection, injection tariffs.
Competition in tenders / eligibility: State aid and funding calls are competitive. Projects will need strong financial, technical, and legal planning to meet criteria.
Sustainability / environmental / land use constraints: Especially for pumped hydro (large projects), environmental permits, spatial planning, water rights etc. will be important to assess.
What Good Regulation Looks Like in the Romanian Context
For investors, the ideal regulatory environment here would include:
Fast, predictable permitting procedures for storage facilities, particularly battery + PV hybrids and large scale pumped hydro.
Transparent and fair grid access rules, avoidance of hidden fees, clear rules for injection, and residual losses.
Stable incentives and state aid schemes with long time horizons.
Prosumers vs industrial users treated fairly, to enable business model flexibility.
Regulatory framework for sustainability, recycling, lifecycle of batteries, safety, environmental impact.
Practical Steps for Potential Investors in Romania
Legal due diligence: Understand all relevant requirements reflected in – Electricity Law 123/2012, Renewable Energy Law 220/2008, GEO 134/2024, Law 255/2024 (for prosumers), ANRE rules.
Align with funding/incentive calls: Ensure your project aligns with the criteria of state aid programs (such as the percentage of renewable energy input, location, and whether it is behind the meter or grid-connected) to qualify for grants.
Model economics with revised tariffs: Consider the effect of tariff exemptions under GEO 134/2024, but estimate costs for self-use and losses.
Permitting & environmental assessments: For large-scale or hydro storage projects, initiate early planning for environmental impact, spatial planning, water usage, and grid connection permits..
Stakeholder engagement & community acceptance: Large storage or pumped hydro often faces local concerns—visual, noise, environmental.
Consider hybrid projects: e.g. combining solar/wind + battery storage, or pumped storage hydro, to benefit from both renewable generation incentives and storage incentives.
Conclusion
Romania is quickly improving its regulatory and incentive framework for energy storage.
Key steps like removing double taxation (GEO 134/2024), setting ambitious capacity targets (~5 GW by 2026), and making significant state aid funds available make this a promising market for investors.
However, achieving success will rely on effectively managing the continuous legal adjustments, meeting the funding eligibility criteria, and ensuring that projects are technically, financially, and socially sound.
For more information or any inquiries, feel free to reach out to me via email at office@cristinatudor.ro
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