Southeastern Europe currently has the highest power prices in Europe and, at the same time, it’s the least mature in terms of energy transition. But this combination of high prices and an underdeveloped market brings a twofold opportunity, according to Panos Kefalas, Research Lead Expert Southeast Europe at Aurora Energy.
“For policy makers, this is a chance to learn from other European markets’ mistakes and best practices. It’s a moment to implement policies and mechanisms that will cut overall energy prices for consumers while strengthening the energy transition. This is a huge challenge not just for Romania, but for the whole Southeast European region. Investor interest has skyrocketed in Romania over the last two or three years, reflecting its growing credibility and stability as a destination for energy projects. Nonetheless, there’s still a lot of hard work to be done,” he said at the 11th Energy Strategy Summit, the flagship event of Energynomics.
According to Kefalas, in terms of policy priorities there are a few key areas that need to be addressed. First, the Contract-for-Difference (CfD) framework is “a huge milestone” for Romania and it’s proceeding faster in Romania than in all other Southeast European countries combined. But the CfD is just a first step and much more is required afterwards.
The main policy priority is developing a clear framework for energy storage. There need to be mechanisms to allow batteries and storage to connect to the market and attract investment. Whether this comes through specialized auctions, base support schemes (like in Greece or Hungary), incentives for collocated assets (like in Bulgaria), or pure market mechanisms, policy makers need to clarify this quickly.
On the other hand, there is a growing interest in power purchase agreements (PPAs). Large consumers and companies are increasingly trying to find PPAs to hedge against market volatility. But signing PPAs is challenging because there aren’t many creditworthy counterparties to match with. Nevertheless, this is a space to watch.
Thirdly, when it comes to offshore wind plans, Romania needs to move fast in identifying concession zones, setting royalty structures, and organizing auctions.
“If Romania is serious about having offshore wind by 2035, this process must move quickly. The UK, for example, typically needs a minimum of 10 years from initiation to delivery of offshore projects. Overall, the outlook is promising. Investor interest is strong, policy signals are improving, and the market is developing quickly. Nevertheless, we need to balance policy incentives with market signals to make sure we create an environment that is attractive to investors while delivering a fair deal for consumers and keeping energy bills reasonable,” he concluded.
2025 Energy Strategy Summit was organised by Energynomics, with the support of our partners: AJ Brand, Elektra Renewable Support, ABB, Adrem Asset Management, Alive Capital, BCR, DEKRA, Distribuție Energie Electrică Romania, E-Infra, Eaton Electric, Electrica Furnizare, EnergoBit, Enery, Enevo Group, Enexus, European Investment Bank, Evryo, Exim Banca Romaneasca, Delgaz Grid, Genesis Biopartner, Huawei, ING Bank, Jantzen Renewables, Keno Energy, Leader Team, LONGi, Nano Energies, Prime Batteries Technology, Procesio, Procredit Bank, Relians, Renomia, Romgaz, Schneider Electric, script.ai, Sermatec, smartPulse, Solar Today, SolaX, Think Blu Solution, Voltika, Wiren, YEO, AIployees, Aqua Carpatica, Alexandrion, Carbon Tool, Imsol.