Romania Energy Storage: 35-fold Growth Window Opens, Golden Ticket for Eastern Europe's Energy Transition

Created on 10.23

When the Western European energy storage market falls into "red ocean competition," an Eastern European country is becoming the new focus for global energy storage investors with its "10 times annual growth, double-digit IRR, and 5GW mandatory target" hard-core strength — that country is Romania. This hub nation connecting the energy networks of Central and Eastern Europe with Western Europe is showcasing a "miracle of explosive growth" in the energy storage industry, driven by policy dividends, market demand, and cost advantages. Today, we will deeply decode the investment logic and entry opportunities in the Romanian energy storage market.

1. The Eve of the Outbreak: From "10 Times Growth" to "35 Times Sprint" Essential Code

The rise of energy storage in Romania has never been a "false fire" driven by policy, but rather a "rigid demand" forced by energy transition. In 2024, this country shocked the European energy sector with a set of data: photovoltaic installed capacity surged by 1.7GW, and energy storage capacity skyrocketed from 10MW/20MWh at the beginning of the year to 137MW/269MWh, with an annual growth of over 10 times. Behind this is a triple irreversible market push.

The "life-and-death exam" of renewable energy consumption is imminent. By 2024, the installed capacity of wind and solar power in Romania is expected to reach 38%, but a staggering 9.2% curtailment rate for wind and solar energy significantly undermines the value of clean energy. The 100MW/200MWh energy storage project signed by China Energy Construction provides a breakthrough solution—once operational, the project will directly reduce the wind curtailment rate in the northwest grid to below 3%, confirming the "value activation" role of large-scale storage for renewable energy. More critically, Romania plans to add 14.8GW of renewable energy capacity by 2035. Based on a 15%-20% energy storage ratio, this demand alone will stimulate a large-scale storage market of 2.2-2.9GWh.

The "demand for addressing shortcomings" in grid stability is equally urgent. As a country accelerating energy independence after reducing reliance on Russian energy, Romania's grid still experiences an average annual outage duration of 8.7 hours, with frequency fluctuations and insufficient reserve capacity becoming prominent issues. The second-level frequency modulation capability and black start function of a 4-hour long-duration energy storage system have become the "core remedy" for enhancing grid resilience, which is also the fundamental reason behind Electric Spot's hefty investment in a 204MW energy storage project and Huawei's deep involvement in core technical support.

The most exciting aspect is the "hard constraint" of the policy goal: Romania has clearly stated the aim to achieve 5GW of energy storage capacity by the end of 2026, while only nearly 400MWh had been completed by the beginning of 2025, which means a 35-fold increase needs to be achieved within two years. This "huge gap between the goal and the current situation" is precisely the market window period that investors should seize.

II. Real Financial Support: The "Dual Dividend Pool" of the EU + Countries

For energy storage investors, the most attractive aspect of Romania is the triple funding support of "EU grants + national subsidies + tax incentives," each of which precisely covers the entire lifecycle cost of the project.

EU Fund: Hundreds of millions in funding directly implemented

As a key support area for the EU's energy transition, Romania can directly connect with the three core funds of the EU, and the efficiency of fund implementation has been validated by multiple projects:

PNRR Recovery Fund: Allocated 79.6 million euros for energy storage projects in 2024 alone, Electrica's 69.9MWh project received a grant of 3.4 million euros, and Renovatio Trading's 60.1MWh project secured 3 million euros in support;
Modern Fund: Two energy contracts were just signed in June 2025, with a total investment of 380 million RMB, including an energy storage capacity of over 25 MWh, directly reducing project investment costs by 30%-40%;
TCTF Cross-Regional Fund: Prioritize support for grid-level energy storage projects, large projects like PRIME BESS that are directly connected at 400kV have entered the funding application green channel.

Local Policy: Comprehensive Support from Subsidies to Market Mechanisms

Romania's domestic policy better understands the "pain points" of energy storage projects, forming a complete closed loop of "subsidies to reduce costs and mechanisms to ensure returns":

Special Subsidy Program: A national subsidy of a total of 103.5 million euros has been launched, with households able to receive up to 30,000 lei in funding for energy storage, while corporate projects can cover part of their investment through APVA subsidies;
Significant Tax Benefits: The emergency decree passed in November 2024 clearly cancels the double charging for energy storage electricity, exempts the one-way transmission fee and the green certificate surcharge, directly enhancing the project's profit margin;
Market mechanism improvement: The capacity market is about to be launched, combined with the already mature electricity arbitrage and ancillary services market, forming a "triple revenue channel," with risk resistance capabilities far exceeding that of a single market.

Three, Visible Returns: The "Hardcore Appeal" of Double-Digit IRR

The investment value of energy storage in Romania is ultimately reflected in the "measurable and highly certain" returns. According to data from Aurora Energy Research, the return levels of energy storage projects here are significantly better than those in the mature markets of Western Europe:

Electricity arbitrage profits lead Central and Eastern Europe: The winter peak-valley price difference can reach 80-120 euros/MWh, and the theoretical annual income of a 4-hour energy storage system can reach 140,000 euros/MW, which is more than three times that of similar projects in Poland and Italy;
Auxiliary service revenue is stable and considerable: The fast frequency response (aFFR) price remains at 13-16 euros/MW/h, with annual revenue per MW reaching 110,000-140,000 euros, complementing arbitrage profits;
Strong IRR certainty: With the support of EU subsidies, projects entering the market before 2026 can achieve an IRR of over 15%. Even if relying solely on arbitrage models after 2030, a stable return of 8-10% can still be maintained, far exceeding most overseas markets.

The financial model of the PRIME BESS project is more meaningful for reference—this project is based on real electricity price data from 2022 to 2025, and through the calculation of threefold revenue from "grid balance + energy arbitrage + capacity market," the risk-adjusted IRR remains above 18%, confirming the market's profit potential.

IV. Project Implementation Wave: The "Dual Main Venue Era" of Local and Chinese Enterprises

The current Romanian energy storage market is showing a collaborative pattern of "local enterprises leading development, with Chinese enterprises providing core technological empowerment," and benchmark projects have covered all scenarios such as grid-level and regional-level.

Ultra-large-scale power grid project: Benchmark for energy storage in Southeast Europe

PRIME BESS Twin Project: 2000MWh/500MW core project + 2800MWh/700MW backup project, directly connected to the 400kV substation, aiming for commercial use in 2028, providing full acquisition, JV, and other flexible investment options, known as the "behemoth" of energy storage in Southeast Europe;
Electric Spot 204MW Project: Huawei provides core technical support, focusing on grid frequency regulation and the integration of renewable energy. After it goes into operation in 2028, it will become the most advanced energy storage facility in Romania.

Chinese enterprises deeply participate: technology output and project implementation in parallel

Chinese companies have become "key players" in the Romanian energy storage market, fully penetrating from technical solutions to project development:

China Energy Construction: Signed a framework agreement for a 100MW/200MWh project with local Weininghui EPC, directly serving wind power consumption, showcasing the strength of Chinese enterprise EPC.
Trina Storage: Collaborating with local Allview to develop a 65MWh project, the Elementa King Kong 2 system has passed the stringent EU certification with high integration, becoming a benchmark for the implementation of Chinese enterprise technology;
Huawei: In addition to the Electric Spot project, it is also deploying distributed energy storage through dealer channels, with a year-on-year increase of 200% in energy storage equipment shipments in Romania in 2024.

Local manufacturing rises: Supply chain cost advantages become prominent

Romania has established local energy storage manufacturing capabilities, with Prime Batteries achieving vertical integration from cell to system integration. In 2023, the production capacity reached 2.3GWh, providing "localized supply + cost optimization" support for the project. This combination of "local manufacturing + Chinese enterprise technology" has reduced the equipment costs of the project by 15%-20% compared to fully imported solutions.

V. Entry Guide: The "Golden Window Period" Before 2026

The explosive growth of the energy storage market in Romania will not last long. The two years before the 5GW target is achieved in 2026 will be the phase with the lowest costs and the highest returns. For different types of investors, the path is already very clear:

Financial investors: Prioritize projects like PRIME BESS that are in the "advanced approval stage + subsidies locked," quickly enter through equity acquisition, and enjoy high returns during the policy dividend period;
Industrial investors: The Tianhe energy storage model can be referenced to establish joint ventures with local EPCs (such as Edusa Green, Electric Station), providing technical solutions and binding project development;
Equipment suppliers: Connecting with large distributors such as Alaska Energies, their experience in representing brands like Huawei and Pylontech indicates that localized channels are key to opening up the market.

Currently, Romania has 3GW of energy storage projects that have obtained grid connection permits, and the 400MW wind-solar storage matrix in collaboration between Electrica and Romgaz has also been launched. These are all high-quality resources that can be directly connected.

As Europe’s energy transition enters the “deep water zone,” Romania has leaped from a “marginal market” to a “core battlefield” with its triple advantages of “35 times growth potential, double-digit IRR, and comprehensive policy support.” Here, there are not only opportunities for ultra-large projects like PRIME BESS but also a vast stage for Chinese enterprises' technology output; not only direct support from EU funds but also a mature revenue mechanism to ensure returns.

The countdown to the 2026 5GW target has already begun, and the story of energy storage in Romania is just starting. For investors looking to enter the European market, now is the best time to seize the opportunity of the energy transition dividends in Eastern Europe.

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Our company is a high-tech enterprise focused on the research and development, manufacturing, system integration, and solutions of advanced energy storage systems. We are committed to deeply integrating cutting-edge energy storage technology with practical application scenarios to customize safe, efficient, and economical energy storage solutions for commercial and industrial use, home energy storage, microgrids, outdoor power supplies, and integrated solar energy storage and charging solutions for our customers.

Contact us via 📫 email or 📞 phone to obtain the investment proposal for the large-scale battery energy storage project on the Romanian power grid.

This is a large-scale, late-stage development greenfield project, and its core selling points can be summarized as:

Super large capacity: 2000MWh/500MW (4 hours duration), is the top giant project in Southeast Europe.

Strategic assets: possessing the most core competitive advantage — direct access to the 400 kV high-voltage transmission network, which is a scarce resource that ensures efficient and large-scale participation in the market.

Clear objectives: The plan is to commence commercial operations in 2028, targeting large institutional investors seeking large-scale, long-term stable infrastructure assets.

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