Ioannis Kalapodas, Director of European Energy for Romania
In a market where green energy is increasingly causing price spikes and episodes of negative prices, the difference between a portfolio on paper and projects that actually go into construction comes down to two things: grid connection and revenue contracting. In this interview, Ioannis Kalapodas, Director of European Energy for Romania, explains why it is betting on hybrid solar + storage parks, how it is shifting its focus from development to marketing and financing, what 2025 meant for Romania, and what needs to change in 2026 for investments to accelerate.
What will be the main growth directions of the company in the coming period, both in Romania and regionally?
In Romania, European Energy has built a significant project pipeline. We currently have one hybrid PV plus battery project under construction (21.5 MWp PV and 10 MW/20 MWh BESS), three hybrid projects at Ready to Build stage totaling 356 MWp of PV and 167 MW/638 MWh of storage, an additional hybrid project of 250 MWp PV and 125 MW/500 MWh BESS, and two early stage wind projects amounting to 330 MW.
Our footprint in Romania is substantial, and we have now reached a stage where our focus is on commercializing our projects- securing off-take agreements and attracting financing to move into construction. We hold a similar position across much of South and Central Eastern Europe, and beyond. Today, European Energy operates in 25 markets across Europe, the U.S., Australia and Brazil.
Our investments in Romania are directly tied to securing viable off-take solutions- one of the key prerequisites for reaching Final Investment Decision. We will continue to advance part of our pipeline independently, while exploring co-investment opportunities for the remainder.
Now, we are less active in developing additional projects due to Romania’s newly implemented grid-connection approval process. The extremely high volume of permitted capacity- at least on paper- far exceeds national targets and results in grid-reinforcement costs that are often economically unfeasible. We need greater clarity on which projects will ultimately move forward, as many of those currently permitted are unlikely to be built.
Like other international developers, we face challenges such as inconsistent interpretations by authorities, unexpected delays, and additional unjustified administrative requests. High grid-connection costs and, above all, the lack of off-take solutions remain in major hurdles. These issues stem from an immature market, the absence of local CPPAs, the non-tradability of CO certificates generated by Romanian renewables, and Romania’s limited attractiveness for VPPAs- all in a country where consumer energy costs remain among the highest in Europe.
What were the main results and transactions of 2025? What are the targets for 2026? What are the main indicators (KPI) achieved in 2025 and tracked for 2026?
2025 was a successful year for European Energy in Romania. Our key objectives were to commence construction of our first hybrid PV-plus-BESS project in the country, advance our development pipeline, and secure a CfD for our wind project in the first auction round- all of which we achieved.
However, 2025 was also a challenging year, marked by continued market volatility, increasing geopolitical tensions, and local political instability. In several markets, we experienced a high frequency of negative power prices and lower capture rates, particularly for solar PV. This reinforced the necessity of integrating battery storage into both under construction and future projects. Despite these conditions, European Energy reached important milestones across major projects, continuing the expansion of wind, solar and storage. Perhaps most notably, we inaugurated our internally developed and constructed Power-to-X plant in Kassø, Denmark – the world’s first commercial e-methanol production facility- delivering ISCC EU-certified RFNBO methanol to key off-takers.
In 2026, we continue our growth journey.
In Romania, we have a large and attractive pipeline, and we hope to reach Final Investment Decision on several projects and achieve Financial Close to carry forward the build-out of our portfolio.
How do you see the future of storage in 2026? What are the efforts (CAPEX) for the construction of a hybrid park and how long does it take to pay for itself?
In 2026, battery energy storage systems will increasingly become a standard feature of renewable energy power plants, and European Energy plans to build and connect more than 1 GWh of storage capacity during the year. As BESS costs continue to decline, price volatility rises- particularly with increasingly frequent negative daytime prices- and the value of shifting generation grows substantially. This market dynamic strengthens the business case for storage and makes co-located renewable parks significantly more resilient.
In Romania, we are working to integrate BESS into all our solar PV projects. This co-location strategy provides clear advantages, including shared grid connections and materially improved project economics.
The exact Capex depends on factors such as system duration, technology choice, site layout and local construction costs. These parameters are currently being refined as we determine the most efficient and future-proof Capex structure for our portfolio of hybrid parks in Romania.
What are the main problems facing foreign investors in Romania? How about on the electricity market? Why do we have high prices, despite the entry of new capacities into the market?
Romania is not the most challenging country in which to develop renewable energy projects. However, several areas would benefit from improvement:
- Grid-connection approval process
The new legislation moves in the right direction, yet the tendering process for grid-connection costs still carries significant uncertainty. This is largely due to the announced procedures and the fact that ANRE has not acted swiftly to clear the grid of speculative “virtual” or “simulated” grid-connection approvals- permits that will never become actual projects. Only after this clean-up should new grid-connection approvals be issued.
Additionally, the auction system for grid-connection works sends the wrong signal to the market. Private investors are being asked not only to finance renewable energy projects, but also to invest heavily in national infrastructure. The mechanism is also unclear: the competitive process essentially rewards paying more for a narrowly defined set of grid-connection works. What happens to the excess funds raised?
A more transparent and efficient approach- such as grid bonds, already used in several EU countries- would be preferable.
- Clarity and harmonization of legislation
The current legal framework still leaves too much room for interpretation, especially among local authorities. Furthermore, Romanian legislation is not yet fully aligned with EU regulations in several important areas.
- Political and economic stability
The overall stability of the country remains a key factor influencing investment decisions. Uncertainty increases risk premiums and can delay or reduce foreign investment.
- Lack of solid off-take solutions
A more active role- or even obligation- for utilities and energy traders to secure a higher share of green energy in the portfolios they supply to consumers could significantly improve market liquidity for long-term off-take agreements.
Romania is among the European markets with the highest end-consumer energy prices. A model with clear and long-term off-take solutions could help stabilize and lower costs for consumers. It is evident that energy traders currently capture a sizable margin, while their level of investment is relatively small compared to project developers.
Geopolitically, Romania occupies a strategically important position at the crossroads between East and West, both on the continent and along the Black Sea. The country has the potential to play a major role for the EU. To achieve this, one of the most critical sectors requiring substantial upgrading is the energy sector- particularly through the development of diversified, geographically spread, and technologically varied green-energy projects, including beyond traditional solutions such as Power-to-X (green hydrogen, e-methanol, bioethanol, etc.).
What have been the biggest challenges since taking over your mandate within the company?
I was the first locally hired employee of European Energy in 2021. A continuing challenge has been conveying to a broader audience how swiftly Romania is moving from an emerging market to a more mature and attractive renewable-energy investment landscape. The most difficult task, however, has been progressing our projects from development into construction and operation, primarily due to the lack of viable off-take solutions. This remains a critical factor for securing capital at a reasonable cost.
How do you see the evolution of the energy market in Romania, but also in the CEE markets where you are already present, in 2026 and in the short term?
The energy-generation mix in Romania will undoubtedly shift in the coming years. Solar, wind, and battery storage capacity will increase significantly compared with just a few years ago- although even this expansion will not be sufficient on its own. The next few years will primarily be a period of construction, while the development of new projects is likely to slow down. This is not only because the new grid-connection approval process will discourage developers, but more importantly, due to continued uncertainty around grid-connection feasibility and the high cost of grid-reinforcement requirements.
We also hope to see meaningful progress on Power-to-X, supported not only by adjustments in energy legislation but, crucially, by market conditions that are robust enough to attract long-term investment.
In 2026, we expect the energy markets in Romania and the wider CEE region to move rapidly toward higher shares of renewable energy, increased grid volatility and growing demand for flexibility. As solar and wind expand further, the system faces heightened risks of curtailment and negative prices, making battery storage indispensable for balancing supply and stabilising the grid. Our Romanian projects will therefore integrate co-located BESS to support security of supply and optimise generation.
Overall, 2026 will be characterised by the rapid scale-up of hybrid parks and co-located solar-plus-storage projects, delivering stronger project economics and a more resilient regional energy system. Falling battery costs and the maturing of revenue streams such as energy shifting, balancing and trading will increasingly align Romania and the CEE region with broader European market trends.
