Romania Power EPC Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Romania Power EPC Market Trends and Insights

EU-Backed 5 GW CfD Scheme Accelerates Renewable Deployment

Romania’s CfD mechanism, capitalized with EUR 3 billion from the EU Modernisation Fund, awarded 4.2 GW across 2024-2025 auctions, surpassing the original 3.5 GW target. Strike prices slid to EUR 35/MWh for solar, underscoring module-cost deflation and lower risk premiums. The 15-year revenue floor enables IPPs to secure project finance below 5%, compressing levelized costs and sharpening competitiveness against regulated utilities. Early movers such as Rezolv Energy and Low Carbon financed the 192 MW Vifor wind farm on these terms, achieving commercial operation by the end of 2025. From January 2026, grid-connection slots above 5 MW are auctioned with financial guarantees, filtering speculative bids and prioritizing shovel-ready assets.^{[1]National Energy Regulatory Authority, “Grid Connection Auction Guidelines,” anre.ro}

Modernisation-Fund-Financed Grid Digitalisation Unlocks Hosting Capacity

Transelectrica’s 2024-2033 plan allocates EUR 56.2 million to deploy solar-and-storage systems at 29 substations, replacing diesel sets and enabling black-start capability.^{[2]Transelectrica, “Ten-Year Network Development Plan 2024-2033,” transelectrica.ro} Complementary distribution upgrades include a EUR 100 million EBRD loan to PPC-owned Rețele Electrice for 500,000 smart meters and a EUR 200 million EIB facility to Electrica Group’s DEER for SCADA rollouts, trimming technical losses below 8%. Four new 400 kV corridors will evacuate offshore wind and integrate CfD-awarded solar, relieving curtailment that currently reaches 12% in Dobrogea. Government targets call for 2 GW of battery storage by 2026, providing frequency services and deferring USD 300 million of transmission CAPEX.

Accelerated Coal Phase-Out Drives Replacement CAPEX Wave

Romania aims to retire 2.25 GW of coal by 2032; interim derogations extend key units to 2029 for grid security. CE Oltenia’s pivot mixes 1,325 MW of gas and 690 MW of solar, although scheduling slippage has shifted gas completions to 2028. Gas backfill also includes Romgaz’s 430 MW Iernut CCGT, featuring 56% efficiency and carbon-capture readiness. Private developers are layering renewables and storage onto legacy coal sites, leveraging extant grid ties while absorbing displaced labor. Coal-reserve refurbishments, exemplified by Rovinari Unit 5’s EUR 100 million overhaul, underscore the urgency for dispatchable gas and storage as renewable penetration deepens.

Building-Renovation Program Bundles Rooftop PV and HVAC EPC

The Casa Verde Fotovoltaica scheme disbursed RON 3 billion to 87,500 households, covering up to 90% of rooftop-solar costs, while REPowerEU added EUR 1.2 billion for 60,000 more systems. Integrating photovoltaics with HVAC upgrades steers procurement toward contractors with dual mechanical-electrical capabilities, prompting Simtel Team and Monsson Group to launch residential divisions. Municipal add-ons such as Bucharest’s RON 150 million battery-plus-solar program aim to co-finance 385 MW and enroll assets in demand-response markets. Vocational partnerships with Transelectrica and Electrica trained 2,400 installers in 2024, narrowing the 40% skilled-labor gap. Yet rural permitting delays of up to 12 months nudge households toward off-grid systems that bypass conventional EPC channels.

Grid-Connection Bottlenecks and Curtailment Risk Compress Returns

Hosting capacity in Dobrogea is saturated, forcing curtailment of up to 12% of wind output and delaying approvals for the 2.75 GW CfD tranche by as long as 24 months. From 2026, 400 kV build-outs and a financial-guarantee-based queue attempt to triage projects, yet developer capital remains locked for up to 18 months. Battery storage offers a hedge: Nova Power & Gas commissioned a 200 MW/400 MWh standalone system in December 2025, capturing frequency revenues that offset curtailment. National storage targets of 2 GW by 2026 could defer USD 300 million in transmission upgrades, but medium-voltage connection studies in Brăila and Constanța still face 9-12-month backlogs.

FDI Screening Above EUR 2 Million Delays Foreign EPC Awards

Romania’s FDI filter subjects non-EU investors to a 45-day review, extendable to 90 days, delaying financial close by four-to-six months. Mytilineos experienced a four-month lag on a 2 GW project pipeline acquisition in 2024, pushing CODs into 2027. Chinese vendors JinkoSolar and Trina Solar now ship equipment-only packages below the threshold, ceding EPC margin to local firms. Policy debate to lift the cap to EUR 5 million lacks a definitive timetable, keeping deal pipelines vulnerable to administrative drag.

Segment Analysis

By Technology: Renewables Extend Lead as Grid Bottlenecks Ease

Renewables seized 71.8% of the Romania power generation EPC market in 2025 and are forecast to grow at a 10.7% CAGR through 2031, anchored by the 4.2 GW CfD pipeline. Wind remains dominant at 3 GW installed, but solar is closing fast as OMV Petrom’s Brazi complex adds 400 MW and CE Oltenia’s 690 MW portfolio advances toward 2026 COD. Offshore wind could inject 3-7 GW by 2035 under the new Black Sea framework, dwarfing legacy coal capacities and reshaping dispatch patterns. Gas-fired CCGTs such as Romgaz’s 430 MW Iernut plant provide mid-merit flexibility, while nuclear stays a 1.4 GW baseload anchor through the EUR 1.9 billion Cernavoda Unit 1 overhaul. The Romania power EPC industry is therefore pivoting toward integrated renewable-and-storage portfolios that minimize curtailment and monetize ancillary services.

Note: Segment shares of all individual segments available upon report purchase

By Capacity Band: Distributed Energy Surges on Corporate Demand

The 100 to 499 MW tier held 65.1% share in 2025, reflecting utility-scale wind and solar parks tied to CfD awards.^{[3]Vestas, “Rezolv Energy Vifor Project Press Release,” vestas.com} Yet sub-100 MW assets are rising at a 12.1% CAGR as industrials deploy captive solar to lock in sub-EUR 40/MWh tariffs; Automobile Dacia’s 36 MW array at Mioveni exemplifies this trend.^{[4]Renault Group, “Dacia Mioveni Solar Park Commissioning,” renaultgroup.com} Hybrid projects co-locating 50 MW wind, 35 MW solar, and 24 MWh batteries highlight evolving design norms aimed at arbitraging day-ahead and balancing markets. Above-500 MW capacity will re-emerge once Black Sea offshore wind enters execution, inserting high-voltage direct-current links into the Romania power generation EPC market roadmap.

By End-User: IPPs Gain Ground Amid PPA Boom

Regulated utilities commanded 66.9% of Romania's power generation EPC market size in 2025, led by Transelectrica, Hidroelectrica, and Nuclearelectrica. IPPs, however, are expanding at 11.3% CAGR, leveraging CfD cash-flow visibility and corporate PPAs to finance pipelines above 3.4 GW. Industrial off-takers embrace self-generation and virtual PPAs, prompting utilities to invest in grid services and reserve margins rather than pure generation.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Dobrogea, Banat, and Oltenia dominate project allocation, absorbing most of the 4.2 GW CfD awards because of superior wind and solar resources. Dobrogea already hosts 3 GW of onshore wind and is earmarked for 4.9 GW of offshore capacity; the Constanța Nord–Medgidia Sud 400 kV upgrade, due 2029, will curtail losses now hitting 12%. Oltenia pivots from coal to gas and solar, with CE Oltenia’s 690 MW PV portfolio and Romgaz’s 430 MW Iernut CCGT slated for 2026-2028 completion. Banat and Transylvania are magnets for industrial captive power; OMV Petrom’s Brazi hub in Prahova feeds automobile and petrochemical clusters.

Urban centers, Bucharest, Cluj-Napoca, Timișoara, and Iași, benefit from rooftop solar subsidies and municipal battery schemes that defer distribution upgrades. Muntenia and Moldova lead in smart-meter density as PPC-owned Rețele Electrice deploys 1.7 million meters, while DEER hardens medium-voltage lines across 42 counties with EIB backing. The Black Sea offshore zone promises long-run job creation, port revitalization, and turbine manufacturing, contingent on timely HVDC rollouts and supply-chain localization.

Despite these opportunities, medium-voltage connection studies in Brăila, Constanța, and Tulcea face 9-12-month backlogs, squeezing developer returns and deterring smaller IPPs. Government storage incentives aim to smooth load profiles and postpone expensive transmission expansion, yet administrative friction persists in rural distribution queues.