Romania's grid connection reform: capacity auctions, increased guarantees and tighter deadlines

Following changes in 2024 that replaced the former "first come, first served" system with an auction-based capacity allocation mechanism, Romania's National Energy Regulatory Authority (ANRE) has recently published a draft order for consultation. This draft proposes increased financial guarantees and stricter permitting deadlines, with failure to comply resulting in loss of grid connection rights. The draft has attracted intensive stakeholder engagement, with both the Government and the transmission system operator issuing proposals to stimulate genuine investment and enforce discipline for new production capacities.

New auction-based capacity allocation

The most significant structural reform is the replacement of Romania's long-standing "first come, first served" grid access system with an auction-based mechanism. Under the previous regime, grid connection permits ("ATRs") were issued in the order applications were received, subject to modest financial guarantees of just 5 % of the connection fee. This model incentivised developers to reserve grid capacity before securing investment or financing, leaving significant capacity blocked for years without realistic prospects of utilisation.

The new mechanism will allocate grid capacity through competitive auctions, with the first auction planned for October 2026. While grid availability studies and detailed auction rules are yet to be finalised, the shift from administrative queuing to market-based allocation represents a fundamental change. That said, the auction date has already been deferred once (from January 2026), and further delays cannot be ruled out pending completion of the grid studies.

Increased guarantees and mandatory deadlines

On 6 March 2026, ANRE published a draft order proposing significant changes to public power network connection rules (the "Draft Order").

The most notable change is a steep increase in financial guarantees – from 5 % to 20 % of connection tariffs. The 5 % guarantee, introduced in August 2024, proved ineffective at deterring speculative developers. According to ANRE statistics, of projects that posted the guarantee, only 12 % proceeded to sign connection agreements, just 3 % obtained building permits, and a mere 1 % reached all three milestones: signing agreements, obtaining building permits and securing setting-up authorisations.

The Draft Order also introduces strict deadlines for obtaining setting-up authorisations, mirroring the building permit regime (12 months from signing connection agreements and 18 months from the ATR date). Missing these deadlines triggers ATR invalidation, automatic termination of the connection agreement and forfeiture of financial guarantees. Developers holding valid agreements when the Draft Order takes effect will benefit from a 12-month transitional period.

The Draft Order further tightens the regime for conditional setting-up authorisations. Failure to satisfy conditions in time will result in automatic ATR invalidation and allow grid operators to enforce guarantees.

Public consultation and ANRE's final proposal

The public consultation generated intensive debate. The most notable submissions came from the Prime Minister's Office and Transelectrica (the "TSO").

The Prime Minister's Office made three recommendations centred on financial discipline:

• two alternatives for financial guarantees: (i) a capacity-based guarantee of EUR 30 per kW, or (ii) a blended formula combining 50 % of the connection tariff with EUR 20 per kW;
• anticipated financial guarantees – required upon submitting ATR applications rather than as a condition for issuance, thereby filtering out uncommitted projects at the earliest stage;
• transparent guarantee rules: enforcement upon unjustified abandonment, gradual release upon achieving milestones and periodic reporting on utilisation.

The TSO proposed eight measures to tighten contractual discipline across the connection lifecycle, including:

• obligation to secure land ownership for grid reinforcement works, from the date of signing the connection contract;
• automatic expiry of connection agreements if extension applications are not submitted at least 30 days before expiry;
• a maximum of two amendments or extensions per contract, conditional upon posting guarantees and evidencing tangible progress (25 % equipment payment or 10 % completion of installation works);
• obligation to obtain setting-up authorisation within firm deadlines;
• upfront financial guarantee per MW upon application submission, deterring speculation and enabling realistic network planning.

Following the consultation, ANRE announced on 24 April 2026 that connection regulations will be amended to provide, among other things:

• a guarantee deposit of EUR 20 per kW as a condition for participation in the capacity allocation auction for new energy production and storage projects;
• a guarantee amounting to 20 % of the connection fee, to be provided after the connection application is submitted and the solution study is approved by the operator.

ANRE will also amend its licensing and authorisation regulations to require a guarantee of EUR 30 per kW upon applying for a setting-up authorisation. For already issued authorisations, this guarantee must be posted if the beneficiary fails to complete the investment within the validity period and requests an extension. The guarantee is released upon completion of the investment.

In ANRE's view, these changes have two key objectives: (i) reducing the current backlog of existing ATRs, since beneficiaries who do not complete investments within the validity period will need extensions and must post the EUR 30 per kW guarantee; and (ii) discouraging speculative projects by establishing stricter financial filters for both grid connection and authorisation processes.

Outlook and practical recommendations

In light of these changes, developers and investors should anticipate three immediate consequences: (i) materially higher costs for securing and maintaining grid access; (ii) legally binding project timelines with automatic forfeiture of connection rights for delays; and (iii) a new layer of uncertainty triggered by the auction-based allocation mechanism.

These reforms undoubtedly increase financial barriers and procedural complexity. Yet they also signal a shift towards a more mature and sustainable energy market. By raising the bar for new entrants, the changes should filter out speculative projects and free up grid capacity. For advanced pipeline projects, this may prove advantageous, as their relative value and competitive position stand to strengthen considerably.