Is Romania still the hottest investment destination for solar PV in the EU?

Accelerated Growth in Installed Capacity

Romania's solar capacity expansion has continued its impressive trajectory into 2025. By the end of 2024, the country had surpassed 3.5 GW of installed photovoltaic capacity, representing approximately 15% of its total electricity generation mix. Current projections indicate that Romania is on track to add an additional 1.2-1.5 GW of solar capacity by the end of 2025, driven by both utility-scale projects and distributed generation.

This growth is particularly significant given that Romania's National Energy and Climate Plan (NECP) targets 5.5 GW of solar capacity by 2030.  It is likely that the country may exceed these targets several years ahead of schedule.

Policy Framework and Support Mechanisms

After discontinuing its green certificate scheme in 2023, the country has embraced auction-based mechanisms for larger projects while maintaining the prosumer scheme for smaller installations. The 2024 amendments to the Energy Law have finally begun showing concrete results in 2025:

1. Contract for Difference (CfD) Scheme: Following its first successful renewable energy auctions in late 2024, Romania has allocated support for approximately 950 MW of new solar projects through the CfD mechanism. This provides developers with revenue stability while protecting consumers from excessive costs. A second round of auction is forecast in 2025.
2. Prosumer Program Expansion: The simplified connection procedures and net metering scheme for prosumers (installations up to 400 kW) have exceeded expectations. By early 2025, Romania had registered over 85,000 prosumer installations with a combined capacity approaching 700 MW.
3. EU Recovery and Resilience Funding: Romania continues to leverage significant EU funding for renewable energy development, with approximately €300 million allocated specifically for solar power development in 2025, focusing on energy communities and agrivoltaic projects.

Market Segmentation and Project Types

The Romanian solar market has become increasingly diverse, with several distinct segments showing strong development potential:

Utility-Scale Solar Parks

Large-scale solar parks remain the backbone of Romania's PV growth strategy. Several significant projects have either been commissioned or entered construction in 2025:

• The 1 GW Arad Solar Park in western Romania represents one of the largest solar developments in Eastern Europe.
• Multiple 50-100 MW projects are under development in the southern regions of Dolj, Giurgiu, and Teleorman, where solar irradiation is most favorable.

These utility-scale developments benefit from Romania's geographic advantages, with the southern plains receiving solar irradiation levels comparable to northern Italy and parts of Spain.

Commercial and Industrial (C&I) Installations

The C&I segment has emerged as one of the fastest-growing sectors in 2025, driven by:

• Rising electricity prices for industrial consumers
• Corporate sustainability goals
• Energy security concerns following regional geopolitical tensions

Romanian manufacturing facilities, logistics centers, and commercial buildings have increasingly adopted rooftop and ground-mounted solar solutions, typically in the 100 kW to 5 MW range. This trend has been particularly evident in industrial hubs near Bucharest, Cluj-Napoca, and Timișoara.

Agrivoltaics and Dual-Use Systems

Perhaps the most innovative trend in Romania's 2025 solar market is the rise of agrivoltaic systems, which combine agricultural activities with solar power generation. With approximately 60% of Romania's territory dedicated to agriculture, these dual-use approaches offer significant potential:

• Several pilot projects combining sheep grazing with solar generation have demonstrated successful results in Dobrogea region.
• Specialized elevated mounting systems allowing for mechanized farming underneath panels have begun implementation in the Banat region.
• Vineyard-integrated PV systems are being tested in the traditional wine-growing regions of Dealu Mare and Murfatlar.

The Romanian Ministry of Agriculture and Rural Development has established new guidance on agrivoltaic development in early 2025, providing regulatory clarity that has accelerated investment in this sector.

Grid Integration Challenges and Solutions

As Romania's solar capacity grows, grid integration has become a critical challenge. However, 2025 has brought significant progress in addressing these bottlenecks:

1. Grid Expansion Projects: Romania has allocated €220 million from EU funds specifically for grid reinforcement in high-potential solar regions. The Southern Romania Grid Enhancement Program began implementation in early 2025, focusing on upgrading transmission infrastructure in Oltenia and Muntenia regions.
2. Energy Storage Integration: Battery energy storage systems (BESS) have become increasingly common components of new solar developments. By mid-2025, approximately 150 MW of battery storage capacity was operational or under construction in Romania, with most systems paired with solar installations to provide dispatchability and grid services.
3. Smart Grid Technologies: distribution system operators have accelerated the deployment of smart metering and grid management systems, with over 3 million smart meters installed by early 2025, representing approximately 35% of all connection points.

Investment Landscape and Market Players

The Romanian solar market continues to attract diverse investors, with several notable trends emerging in 2025:

1. International Developer Interest: Major European renewable energy developers from Spain, Germany, and France have established or expanded their Romanian operations in 2025, attracted by the country's solar potential and improving regulatory environment.
2. Oil and Gas Transition: Romania's traditional energy companies, including OMV Petrom and Romgaz, have significantly increased their solar investments as part of their energy transition strategies. OMV Petrom announced plans to develop 1 GW of renewable capacity by 2030, with solar accounting for approximately 65% of this target.
3. Financial Innovation: New financing models have emerged, with several Romanian banks offering specialized green loan products for solar investments. Green bond issuances dedicated to renewable energy projects have increased, with the Bucharest Stock Exchange reporting a 40% year-over-year increase in green bond listings.

Technological Innovations and Market Trends

The Romanian solar market is increasingly adopting cutting-edge technologies to maximize efficiency and returns:

1. Bifacial Modules Dominance: Approximately 75% of utility-scale projects initiated in 2025 utilize bifacial modules, taking advantage of the technology's improved yields, particularly in the snow-prone northern regions.
2. Floating Solar Potential: Romania's first significant floating solar project began construction in 2025 on a reservoir in the Dobruja region, with a planned capacity of 15 MW. This technology offers particular advantages given Romania's numerous hydropower reservoirs and irrigation ponds.
3. AI-Driven Optimization: Advanced forecasting, monitoring, and optimization systems using artificial intelligence have become standard for larger Romanian solar installations, improving production predictability and operation efficiency.

Challenges and Future Outlook

Despite the positive trajectory, Romania's solar market faces several challenges:

1. Administrative Procedures: While improved, permitting processes remain cumbersome, with environmental approvals and grid connection procedures creating bottlenecks for project development. The government's promised "one-stop-shop" for renewable project authorization has been partially implemented but remains incomplete.
2. Skilled Workforce Limitations: The rapid growth of the sector has created significant demand for qualified solar technicians and engineers, with educational institutions struggling to produce sufficient graduates. Several vocational training programs focused on solar installation have been established in 2025 to address this gap.
3. Supply Chain Considerations: Romania's dependence on imported solar equipment persists, though several European manufacturers have expressed interest in establishing production facilities in Romania to serve the growing Eastern European market.

Conclusion

The Romanian photovoltaic market in 2025 shows accelerated growth, technological innovation, and increasing maturity. For investors, developers, and policymakers, Romania represents one of Europe's most dynamic solar markets through both established support mechanisms and emerging opportunities in specialized applications like agrivoltaics and storage-integrated systems. As grid infrastructure develops to accommodate higher renewable penetration, Romania appears well-positioned to exceed its solar deployment targets and potentially become a regional leader in photovoltaic integration.