RWEA and RPIA Warn: Proposed Grid Connection Regulation Changes Risk Slowing Investments and Driving Up Energy Prices

The Romanian Wind Energy Association (RWEA) and the Romanian Photovoltaic Industry Association (RPIA) warn that the proposed amendments to the Grid Connection Regulation could lead to higher energy prices and trigger broader economic ripple effects. These include job losses across the sector and reduced revenues for local budgets, amid a slowdown in investments in new generation capacities.

In recent years, driven by accelerated growth in the energy sector, the number of grid connection permits (ATRs) issued has increased significantly. At the same time, since 2022, over 5.5 GW of photovoltaic and wind capacity have been commissioned, covering between 40% and 50% of electricity generation during daytime hours. However, a considerable number of issued ATRs are unlikely to materialize, resulting in a “paper congestion” of the grid.

The need for a filtering mechanism to discourage speculative projects is real and acknowledged by the industry. As early as 2019, the sector proposed measures such as financial guarantees for obtaining grid connection permits, a measure only implemented in 2024. The industry also advocated for the automatic expiration of connection permits if projects fail to secure the required authorizations within a predefined timeframe, a concept later adopted by the regulator.

However, in its current form, the draft regulation, while aiming to address speculative behaviour, introduces excessively restrictive conditions that risk affecting even viable, investment-ready projects.

In practice, project development is frequently delayed due to bottlenecks in permitting processes, driven by institutional constraints and limited administrative capacity. A relevant example is the permitting process with the Romanian Civil Aeronautical Authority for wind turbines, where available submission slots currently begin only in June 2027. In this context, RWEA and RPIA stress that the proposed amendments should not disregard input from the investment community.

“We call for the adoption of a coherent and balanced regulation that effectively filters speculative projects, reflects on-the-ground realities, supports investments, and contributes to accelerating the energy transition. It is essential for Romania to maintain a predictable and competitive framework,” stated representatives of RWEA and RPIA.

The solutions proposed by the industry associations align with the regulator’s objectives but emphasize the need for realistic timelines, such as 24 to 36 months, to avoid blocking viable projects.

“An approach that treats all investors as potential speculators is not justified. Renewable energy is the only segment that has consistently delivered new capacity at scale in recent years. Imposing disproportionate conditions risks blocking precisely those projects that are ready to be implemented,” the representatives added.

According to industry estimates, over €700 million has already been invested in project development at the permitting stage alone. These investments generate horizontal economic effects, supporting extensive value chains, from consultancy, engineering, and specialized studies to local suppliers, manufacturers, and related services, thereby contributing to Romania’s economic competitiveness.

Currently, the sector employs over 70,000 full-time workers. To meet the targets set in the National Energy and Climate Plan, over 10 GW in solar and 7 GW in wind, this number is expected to exceed 100,000 by 2030.

The associations also warn of the risk of a renewed blockage in the energy generation sector under the proposed regulatory changes. A similar situation occurred after 2013, when the sector experienced nearly a decade of stagnation. The consequences were significant, and restoring Romania’s investment attractiveness required sustained effort over several years.

A slowdown in project development would mean fewer jobs, lower revenues for local budgets, and increased pressure on energy prices. Renewable energy capacities, currently the most cost-competitive, are essential for stabilizing prices, as demonstrated by examples in Spain and Portugal.

In the current context, marked by economic and geopolitical pressures as well as ambitious decarbonization targets, maintaining a predictable regulatory framework is critical, especially as every additional megawatt installed counts.