Romania Amends 2 Important Energy Laws

The Romanian Ministry of Energy has launched for public consultation the draft Emergency Ordinance for amending and supplementing the existing legislative framework, regarding both the Electricity and Natural Gas Law no. 123/2012 and the Law no. 220/2008 on the promotion of energy production from renewable sources. This draft emergency ordinance aims to create a solid and sustainable framework for the development of energy storage capacities, to establish the national public interest regime for strategic power generation projects and to implement cyber audit measures for the security of photovoltaic infrastructures.

The draft emergency ordinance provides for the regulation of PSH storage technologies, introducing key legislative clarifications on the operation of pumped storage hydropower plants (PSH). Short-term and seasonal storage, including through batteries, is vital for the stability of the national system, providing increased flexibility and preventing imbalances between energy supply and demand that can affect security of supply and price stability.

The draft regulates the declaration of power generation projects as works of national public interest. This capacity allows the classification of some energy infrastructure works as being of national importance, granting certain tax incentives, including their removal from the agricultural circuit, under the law. The objective is to accelerate the implementation of critical projects for Romania’s energy security, with a positive impact on the stability of the energy market and ensuring the necessary resources for the energy transition.

The draft makes cyber audits mandatory for grid operators of newly built photovoltaic parks. The draft proposes regular cyber audits of inverters, and all IT components associated with PV parks. This is a measure designed to protect the national infrastructure against digital vulnerabilities, given the risks related to imported equipment and their potential to transmit data to state and non-state actors hostile to Romania without the consent of the operators.

The draft aims to develop a legal framework for public and private initiatives to build energy storage capacity. The draft emergency ordinance supports investment in new storage capacity by establishing rules that facilitate the development of storage infrastructure and its adaptation to the needs of the National Energy System, including by eliminating the doubling of taxes for stored energy.

In the current context of increasing renewable energy capacities, these legislative changes are essential to ensure the stability and security of the National Energy System and to maintain competitive prices on the energy market.

“Romania is taking another decisive step towards a sustainable and secure energy future. This draft ordinance provides the framework we need to turn our green transition ambitions into reality, and Romania’s energy security will be strengthened through innovation and regulations tailored to today’s requirements. Energy transition is no longer a long-term goal, but a national emergency. We open our doors wide for investments in pumped storage hydropower plants, as well as any electricity storage project. Storage is the top priority for the national energy system,” Energy Minister Sebastian-Ioan Burduja said.