The European energy map is being redrawn, and Romania has emerged as one of the most dynamic, high-stakes frontiers on the continent. With a strategic geographical position, abundant solar irradiation in the south, and exceptional wind resources in the Dobrogea region, the country is experiencing a second wave of renewables development. However, for the international investor, the gap between the theoretical potential and a commercially viable, grid-connected asset is vast.
The market is flooded with opportunities, from Greenfield developments to "Ready-to-Build" (RTB) acquisitions. Yet, the path to energization is paved with regulatory nuances that do not appear in standard legal due diligence reports. To succeed, you don't just need a lawyer who can quote the legislation; you need a strategic partner who understands how the system actually breathes. This is the reality of developing Renewable Energy Romania.
The Landscape: Why Invest Now?
The first wave of Romanian renewables (2010–2014) was driven by a generous Green Certificate scheme. The current wave is driven by something more sustainable: market fundamentals, decarbonization targets, and the urgent need for energy security.
For those looking to invest in energy romania, the drivers are compelling. The European Union’s Modernisation Fund and the National Recovery and Resilience Plan (NRRP) are pumping billions into the grid infrastructure and new generation capacity. Furthermore, the introduction of Contracts for Difference (CfD) provides a level of revenue stability that banks and institutional investors crave.
However, the "gold rush" mentality has created a cluttered market. There is a surplus of projects on paper, but a scarcity of projects that are technically and legally sound. The market is maturing, moving from simple solar PV parks to complex hybrid solutions involving Battery Energy Storage Systems (BESS) and wind.
The Regulatory Maze: It’s Not Just About Compliance
In many jurisdictions, legal advice is about ticking boxes. In Romania, it is about risk allocation and value protection. A standard legal approach might tell you that a project has all the necessary permits listed in the law. A specialized Legal consultant energy romania will tell you if those permits will actually hold up against a challenge, or if the land rights are secure enough to satisfy a project finance investment committee.
Land Structuring and Zoning
One of the primary failure points for projects occurs long before the first panel is installed: land securing. The distinction between intravilan (buildable land within municipal limits) and extravilan (agricultural land outside limits) is critical.
Recent legislative changes have allowed for the development of renewables on extravilan land up to 50 hectares without a PUZ (Zonal Urban Plan), provided the land is not high-quality agricultural soil (classes I and II). However, this "simplification" is fraught with interpretative risks at the local authority level. We often see developers skipping steps to speed up the process, only to find their building permit (AC) challenged later because the land was not properly removed from the agricultural circuit.
Furthermore, superficial due diligence often misses overlaps with Natura 2000 protected areas or archaeological sites. A project might look clean on a map, but a rigorous environmental impact assessment (EIA) screening can reveal restrictions that reduce the buildable capacity by half—destroying the financial model.
The Grid: The Ultimate Gatekeeper
If land is the foundation, the grid connection is the lifeblood. In Romania, the grid connection process is currently the most significant bottleneck and the highest source of risk.
The document that governs this is the ATR (Aviz Tehnic de Racordare or Technical Connection Approval). However, holding an ATR is not the end of the story; it is barely the beginning. The grid landscape has shifted from a "first-come, first-served" model to one increasingly defined by capacity allocation auctions and strict financial guarantees.
Understanding the Risks
- Reinforcement Works: Many ATRs are issued with conditions requiring "reinforcement works" in the upstream network. These can be general (shared among several developers) or specific. The crucial question for an investor is: Who pays, and when? If your project’s energization depends on Transelectrica upgrading a substation 50km away, you are no longer in control of your timeline.
- The 10% Guarantee: To filter out speculative "ghost projects," regulations now require substantial financial guarantees to keep an ATR valid. Investors need to understand exactly when this money is locked in and under what conditions it can be confiscated.
- Curtailment: As renewable penetration increases, the risk of curtailment (being told to turn off generation due to grid congestion) rises. A savvy legal consultant ensures that the connection contract and the financial model accurately reflect the reality of evacuation limits, rather than assuming 100% output 100% of the time.
Transactions: Buying the Reality, Not the Brochure
A significant portion of the current market activity involves M&A—investors buying SPVs (Special Purpose Vehicles) that hold project rights. This is where the difference between a "paper project" and a "real project" becomes expensive.
When advising on the acquisition of an RTB project, we move beyond standard corporate due diligence. We look for the "poison pills" in the development history:
- Superficie Rights: Are the surface rights agreements with landowners watertight for 25-30 years? Do they survive the insolvency of the landowner?
- Permit Validity: Are the urbanism certificates and environmental permits still valid, or have they been kept alive through legal loopholes that won't withstand scrutiny?
- EPC Constraints: Is the project tied to a specific technology or EPC contractor that is no longer viable?
Our role is often to tell a client not to buy. In the hype of the market, the most valuable advice is often the instruction to walk away from a project that cannot be built or financed, regardless of how attractive the IRR looks on an Excel sheet.
Revenue Streams: PPA and CfD
The route to market for Romanian electricity is evolving. While merchant risk (selling on the spot market) was the norm for a while, financing requirements are pushing the market back toward long-term offtake agreements.
Corporate PPAs
The Corporate Power Purchase Agreement (PPA) market is active but complex. It requires balancing the bankability requirements of lenders with the flexibility needed by corporate off-takers. We structure these agreements to handle balancing costs, profile risks, and change-in-law clauses, ensuring the revenue stream is secure enough to leverage debt.
Contracts for Difference (CfD)
The introduction of the CfD scheme is a game-changer. It effectively guarantees a strike price for 15 years, removing the volatility of market prices. However, accessing these schemes involves competitive auctions. Legal strategy here involves ensuring eligibility, managing bid bonds, and understanding the penalties for non-delivery.
The Future: Storage and Hybridization
The future of Renewable Energy Romania is not just generation; it is flexibility. As the grid becomes saturated with intermittent solar, the value shifts to Battery Energy Storage Systems (BESS).
The legal framework for BESS is still catching up with the technology. Integrating storage into existing solar or wind projects involves amending connection permits and navigating new fire safety and environmental regulations. We are currently advising on some of the first large-scale standalone storage projects in the country, helping shape the regulatory interpretation of these assets.
Conclusion: Execution is Everything
The Romanian renewable energy market offers high rewards, but it punishes the unprepared. The legislation is fluid, the authorities can be bureaucratic, and the technical constraints are real.
At Grigorescu Partners, we do not operate in the theoretical. We are an energy-only practice focused on execution. We understand that our clients—whether they are family offices, infrastructure funds, or banks—care about four things: cash, timing, risk, and exit.
We help you enter the market with your eyes open. We help you secure land and permits that hold value. We help you navigate the grid bottleneck. And most importantly, we help you avoid the mistakes that turn promising investments into stranded assets. In a market as complex as this, you don't just need legal advice; you need a partner who treats your capital with the same rigor as you do.