Romania needs to use its electricity transmission and distribution infrastructure much more efficiently, something that is not happening today, points out George Vișan, Director of Energy Markets at Transelectrica. In his view, the problem is structural and has to do with the need to completely change the way we look at grids: not as an unavoidable cost, but as a key strategic factor for decarbonization and the integration of renewables.

“We need to make optimal use of existing networks. We are not using them optimally,” said Vișan, during the “Voices of the Industry” session at the 11th Energy Strategy Summit, the flagship event of Energynomics.

According to the director of Transelectrica, Romania today has a European electricity market that works “under the given conditions”, but this does not mean that the Energy Union is complete. The flexibility dimension remains an unfinished chapter – and a critical factor for the future. “First of all, we have a European market… functioning on ‘given conditions’. Period. But this whole Energy Union is not fully completed because we need to talk about the flexibility of the system,” Vișan explained.

Flexibility in concrete terms means massive investments in storage, demand response, digitization and network infrastructure. These are not mere costs, but strategic investments that can guarantee energy security and long-term economic competitiveness.

Early investments and better interconnections

Europe has set a target to increase interconnection capacity by 35 GW by 2030, with Romania aiming to go from 4 GW to 7 GW by 2035. This leap is vital for integrating renewables into the energy mix and harnessing the potential of the Black Sea, where offshore projects should generate 3 GW to be “transported onshore and sold” where there is demand.

Vișan clearly emphasized the economic dimension of this challenge: “Interconnections by 2030 need to increase by 35 GW, i.e. 35,000 MW. Romania will increase from 4,000 to hopefully 7,000 by 2035 with neighboring countries.”

These investments are part of a wider EU-wide plan, which, according to the calculations presented, could reach 863 billion euros by 2050 – an amount that includes offshore energy development, which “has not been discussed enough here”, said Vișan.

But to sustain such investments, an evolved and predictable regulatory framework is needed. “You have to have certainty when you do a deal like this,” said Vișan. The lack of clear regulation can block investments in grid, flexibility and storage capacity, even though these are critical to the energy transition.

Romania is not currently experiencing congestion in the transportation network, but Visan warns that this situation will not last forever. “There is no congestion. We are now setting up the second circuit between Smârdan and Gutinași in the Dobrogea area. So we are not paying for congestion. Why? Because we make efficient use of the networks through dispatching. We don’t even have too much consumption,” explained Vișan, adding that the situation will change with the massive electrification of transport and other sectors.

“By the time energy consumption increases – because it will increase – we’ll have to scrap diesel cars and buy electrics in 10-15 years, probably.”

Romania has the lowest per capita consumption in the EU

Romania today has the lowest electricity consumption per capita in the European Union – around 1,800 kWh per year. “Bulgaria has 4,000. I’ll give you an example,” said Vișan. This situation limits the pressure on the networks for the time being, but will become a handicap in the competition to attract industrial investment and modernize household consumption.

As consumption increases, he warns, investments will be needed not only in internal networks but also in interconnections to build the European “copper plate” that allows massive energy flows between countries.

Another critical point at present is the balancing market, which functions rather as a penalty mechanism for lack of flexibility and structural imbalances in the system. “The balancing market is a penalty market. It gets the job done. It penalizes. And the fact that we have major imbalances, because we haven’t unlocked flexibility yet, you can see it when we don’t need the energy, but it is being produced,” Vișan said.

He emphasizes that it is not Transelectrica that penalizes participants that do not respect their contractual commitments – but the market itself.

Unlocking flexibility is a strategic objective

To correct these imbalances, Romania needs to “unlock” the flexibility of the system. “We need to unlock all forms of flexibility: demand response, storage, digital tools,” says Vișan, pointing out that work is already underway at European level on a network code for demand response, which will provide a common framework for transmission and distribution operators.

“This demand response code will be approved this year by ACER. The methodologies will be drawn up and then we will certainly be able to develop the flexibility market in Romania,” Visșn added.

But he warned that without a predictable and coordinated framework at European level, including on pricing, the benefits of these investments will be limited. “I would not dwell so much on this investment nonsense of ours. They are important, but I tell you: the use of the systems is all the more important.”

Romania therefore faces a strategic choice. It can continue to manage the transmission and distribution networks as underfunded and poorly used infrastructure – or it can turn the grid into an engine for European integration, attracting investment and supporting accelerated electrification.

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.