Legal guide to Romanian renewable energy EPC contracts for investors and developers, covering scope, delay, performance, BESS, security, direct agreements and bankability.
A Romanian renewable EPC contract is the legal bridge between a permitted project and an operating asset. It should align scope, price, delay, performance, grid, ANRE, BESS, PPA/CfD and lender requirements.
Executive answer
A Romanian renewable EPC contract is the legal bridge between a permitted project and an operating asset. It should align scope, price, delay, performance, grid, ANRE, BESS, PPA/CfD and lender requirements.
Investor reading map
| First question | Does the EPC scope deliver the revenue-generating asset, not only construction works? |
| Second question | Are time, price and performance risks backed by meaningful remedies? |
| Third question | Will lenders accept the EPC structure for project finance? |
1. Executive summary
An EPC contract — Engineering, Procurement and Construction — is the main construction contract under which a contractor typically undertakes to design, procure, construct, test, commission and hand over a renewable energy project. In Romania, EPC contracts are now central for:
project-financed renewable assets.
A bankable EPC contract should answer five core questions: QuestionWhy it mattersWho is responsible for design?Design errors can delay permits, grid approval and performanceWho procures equipment?Modules, inverters, batteries, transformers and HV equipment drive cost and delay riskWho builds and integrates the project?Interface risk is critical in PV+BESS and grid worksWho bears delay risk?COD delay can trigger PPA, CfD, financing and grid consequencesWho guarantees performance?Underperformance directly affects revenue and valuation In Romania, the legal risk is rarely only “construction”. The real risk is interface: between EPC, permits, ATR, grid connection agreement, ANRE authorisation, equipment warranties, PPA/CfD deadlines, financing conditions and commissioning.
2. Why EPC contracts matter in Romania in 2026
Romania is no longer only a development pipeline market. Real construction is happening. Several public examples show the direction:
Simtel and HEPA Energy signed a contract of approximately RON 217 million for the design, construction and commissioning of a hybrid project in Sebeș, Alba County, consisting of around 68 MWp PV and 180 MWh BESS, with a 12-month implementation period and turnkey delivery.
Verbund Wind Power Romania selected Prime Batteries Technology and Enevo Group for the full EPC scope of a 48 MW / 76 MWh BESS at the Alpha Wind Nord wind farm in Tulcea County, including design, equipment supply, system integration, installation, commissioning and handover, with construction planned to start in February 2026 and commissioning targeted for September 2026.
Electrica signed an EPC contract for a 70 MWh standalone BESS project in Fântânele, Mureș County, with an estimated investment of EUR 16.5 million and completion targeted in 2026.
Allview Energy completed a 46 MWp solar plant in Țăndărei, Ialomița County under a full EPC contract, including design, equipment supply, execution, system integration, testing and technical documentation; the works also included a 35/110 kV station, underground high-voltage power line and integrated SCADA system.
3. What is an EPC contract?
An EPC contract is a construction contract where one contractor, or a consortium of contractors, takes responsibility for:
projects where sponsor wants single-point responsibility.
Main advantage:
One contractor is responsible for delivering the complete project.
Main risk:
Contractor prices more risk, and the employer must define scope very precisely.
4.2 Split EPC
In a split EPC structure, different contractors handle different scopes. For example:
another provides EMS / BMS.
This can reduce cost but increases interface risk. In Romania, split EPC can be tempting because of cost pressure, but it must be managed carefully. If the project is delayed, each contractor may blame another. Real risk: The battery supplier says the delay is caused by grid works. The grid contractor says SCADA data was late. The civil contractor says transformer foundations were redesigned. The owner is left managing the gap.
5. Key legal framework in Romania
5.1 Construction authorisation
Romanian construction works are generally governed by Law 50/1991. The law provides that civil, industrial, agricultural and other construction works may be carried out only in compliance with the building permit issued under the law and with design and construction regulations. For renewable energy projects, this means the EPC contractor must build strictly within the authorised project. If the EPC contractor changes the layout, transformer location, cable route, BESS configuration or technical design without proper permit analysis, the project may become non-compliant.
5.2 ANRE licensing and authorisation
The current ANRE licensing and authorisation framework is based on ANRE Order 6/2025, as amended by Order 26/2025. ANRE’s official page confirms that electricity-sector licensing and authorisation activities are carried out under this regulation. For EPC contracts, this matters because construction and commissioning must be aligned with:
operating licence requirements.
The EPC contractor should not only build the physical plant. It should also deliver the documentation needed for commissioning, grid acceptance, ANRE licensing and COD.
5.3 Grid connection
The EPC scope must be consistent with the ATR and grid connection agreement. This includes:
6. EPC and the Romanian project lifecycle
A renewable EPC contract should not be signed in isolation. It must be aligned with the project lifecycle. Stage 1 — Pre-EPC readiness Before signing the EPC contract, the owner should confirm:
financing and CPs are aligned.
If this is not done, the EPC contract may become the place where all development gaps explode.
Stage 2 — Notice to proceed The EPC contract should distinguish between:
scheduled COD.
This distinction is important for Romanian projects because financing, land, grid and authorisation conditions may not all be ready on the same day. A contractor should not be fully liable for delay if the owner has not delivered permits, land access or grid interface conditions. At the same time, the owner should not accept an EPC contract where the contractor can delay mobilisation indefinitely.
Stage 3 — Construction During construction, the EPC contract must regulate:
7. Scope of work: the most important part of the EPC contract
The most common EPC mistake is an unclear scope. The EPC contract should define exactly what the contractor must deliver. For a solar PV project, scope should include:
documentation and handover.
For a BESS project, scope should include:
OEM documentation.
For a PV+BESS project, scope must also define the integration between PV and battery:
dispatch and optimisation interface.
If the contract does not clearly define the scope, the parties will later dispute whether an item was included in the EPC price.
8. Grid works and interface risk
In Romania, grid works are often the most sensitive EPC interface. The EPC may include:
testing with grid operator.
But some works may remain under the grid operator or separate contractors. The contract must define:
who pays additional grid requirements.
Real Romanian issue: A project is delayed because the substation, SCADA or protection relay integration is not ready. The PV field may be complete, but the project cannot energise. In EPC drafting, “mechanical completion” should not be confused with “commercial operation”.
9. Price structure
EPC pricing can be structured in several ways.
9.1 Lump-sum turnkey
The contractor delivers the project for a fixed price. This is preferred by lenders because it reduces cost overrun risk. But the owner must ensure that:
equipment price escalation is addressed.
9.2 Unit price
Used where quantities may vary, such as cabling, civil works or trenching. This can be useful, but it reduces price certainty.
9.3 Cost-plus
Usually less bankable unless used for early works or limited pre-NTP activities.
9.4 Hybrid
Common in practice: fixed price for main plant, unit rates for variable works, provisional sums for grid-related or civil uncertainties. For Romanian renewable projects, a pure fixed-price EPC can be risky if the project has insufficient geotechnical data, unclear cable route or unresolved grid works.
10. Delay risk and liquidated damages
Delay is one of the most important EPC risks. A delay in Romania may affect:
revenue model.
The EPC contract should include:
acceleration rights.
Real case: Scatec’s Romanian solar portfolio benefits from a 15-year CfD for approximately 70% of estimated production. For CfD-backed projects, construction delay is not only a contractor-owner issue; it can affect support eligibility and revenue visibility. For CfD projects, EPC long-stop dates must be aligned with CfD deadlines.
11. Performance guarantees
Performance is as important as time. For PV projects, EPC performance guarantees may include:
defect correction.
For BESS projects, guarantees may include:
safety system performance.
Performance liquidated damages should apply if the project fails performance tests. The contract must clearly state:
termination rights if minimum performance is not met.
For BESS, the EPC contract should be tightly connected to the OEM warranties. Otherwise, the EPC contractor may promise performance that the battery supplier does not support.
13. BESS-specific EPC issues
BESS EPC is more complex than PV EPC. A strong BESS EPC should cover: Battery degradation The contract must define:
capacity maintenance.
Safety The contract must cover:
emergency response plan.
Software and control The contract must cover:
optimiser interface.
Revenue alignment If the financial model assumes aFRR, mFRR, arbitrage or PPA shaping, the EPC technical requirements must support those use cases. A BESS built only for energy shifting may not automatically qualify for balancing services.
14. PV+BESS EPC issues
PV+BESS contracts require an integrated approach. The contractor must deliver not just two assets, but one coordinated system. Key questions:
Is BESS AC-coupled or DC-coupled?
Can the battery charge from the grid?
Can it charge only from PV?
Can PV and BESS discharge simultaneously?
What is the export limit under the ATR?
Who controls dispatch logic?
How is clipping recovered?
How is BESS availability tested?
How are GOs treated for stored energy?
How is metering structured?
Does the BESS support the PPA product?
Simtel’s Sebeș contract is a useful public example because it expressly covers design, construction and commissioning of a hybrid PV+BESS plant of approximately 68 MWp plus 180 MWh storage, with turnkey delivery. Hybrid EPC requires more than adding a battery to a solar EPC form.
16. Interface with financing
For project-financed assets, lenders will expect the EPC contract to be bankable. Typical lender requirements include:
clear governing law and dispute resolution.
The EPC contractor must be financially strong enough to stand behind its obligations. If the EPC contractor is a thin SPV, the owner should request parent company support.
17. Interface with PPAs and CfDs
The EPC contract must be aligned with the project’s revenue contracts. PPA interface If the project has a PPA, the EPC must align with:
testing and acceptance.
If the EPC is delayed, the project may lose PPA revenue or face termination. CfD interface If the project benefits from a CfD, the EPC must align with:
grid connection deadlines.
For Scatec’s 190 MW Romanian solar portfolio, the projects are supported by a 15-year CfD covering around 70% of estimated production, showing how construction, financing and revenue support must be integrated.
18. Change orders
Change orders are a major source of EPC disputes. The contract should define:
whether oral instructions are valid.
In Romania, changes often arise from:
lender technical advisor comments.
A good EPC contract should not prevent all change. It should make change manageable.
20. Liability caps
A bankable EPC contract must define liability caps carefully. Common caps include:
exclusion of indirect loss.
The owner should avoid a structure where the liability cap is so low that delay LDs and performance LDs exhaust the contractor’s exposure before major defects are discovered. For BESS, separate caps may be needed for safety, degradation and capacity warranties.
21. Security package
A renewable EPC contract should normally include:
subcontractor collateral warranties, where relevant.
For lenders, these instruments are crucial. For owners, they are the difference between having a contractual claim and having real recovery.
22. Insurance
The EPC contract should require appropriate insurance, such as:
BESS fire and thermal runaway risk coverage.
For BESS projects, insurance availability and exclusions should be reviewed early. Some insurers may impose specific technical and safety requirements.
25. Real Romanian EPC risk cases
Below are the recurring Romanian EPC risk scenarios investors should understand. Case 1 — EPC signed before project is truly RTB The owner signs EPC before land, permits, GCA or ANRE authorisation are fully aligned. Contractor later claims extension of time and additional cost. Solution: EPC signing can happen early, but full NTP should be conditional on project readiness.
Case 2 — PV-only EPC used for PV+BESS The contract is adapted from a solar template and does not properly address battery degradation, fire safety, EMS, metering or revenue use cases. Solution: Use BESS-specific technical schedules and performance tests.
Case 3 — Grid works outside EPC scope The plant is complete but cannot energise because station, cable, SCADA or protection works are delayed. Solution: Define grid interface, responsibility matrix and coordination obligations.
Case 4 — Owner-supplied equipment causes delay The owner procures modules or batteries directly. Delivery is late. Contractor claims extension of time. Solution: Allocate owner-supplied equipment risk clearly.
Case 5 — Performance test unclear The project is built, but the parties dispute whether performance ratio or battery capacity test was passed. Solution: Define test methodology, correction factors and retesting procedure.
Case 6 — Permit mismatch Contractor builds according to optimised design, but the authorised design was different. Solution: Any design change must trigger legal permit review before implementation.
Case 7 — CfD or PPA deadline missed Construction delay causes the project to miss revenue support or offtake deadlines. Solution: Align EPC LDs with commercial exposure, or at least avoid a major uncovered gap.
Case 8 — EPC contractor is not financially strong enough The contract has good wording but the contractor has limited balance sheet. Solution: Require parent guarantee, bond, retention and bankable security.
26. EPC due diligence checklist
Before signing or acquiring a project with an EPC contract, review: Contract structure
Full EPC, split EPC, EPCM or supply/install?
Is responsibility single-point or fragmented?
Is the contractor financially credible?
Is there parent support?
Scope
Is scope complete?
Are exclusions limited?
Are grid works included?
Are SCADA and metering included?
Are BESS/fire systems included?
Are testing and documentation included?
Price
Lump sum or variable?
What assumptions apply?
What is excluded?
What triggers change orders?
Are taxes, customs and FX addressed?
Time
What is commencement date?
What is scheduled COD?
Are milestones clear?
Are delay LDs sufficient?
Are extension of time rules fair?
Is grid delay allocated?
Performance
What tests apply?
What performance guarantees exist?
Are LDs sufficient?
Is rejection/termination possible?
Are OEM warranties aligned?
Permits and grid
Who handles permit amendments?
Who coordinates with grid operator?
Who prepares ANRE/grid documentation?
Who bears risk of grid operator requirements?
Is GCA scope reflected?
BESS
Are battery warranties included?
Is degradation covered?
Is fire safety covered?
Is EMS/BMS included?
Is revenue functionality tested?
Security
Performance bond?
Advance payment bond?
Warranty bond?
Parent company guarantee?
Retention?
Insurance?
Financing
Direct agreement?
Assignment rights?
Step-in?
Lender cure periods?
Termination restrictions?
27. Drafting recommendations
A strong Romanian renewable EPC contract should include:
handover documentation list.
The most important drafting point is this:
The EPC contract must not only describe what will be built. It must describe what must be delivered for the project to generate revenue.
28. Investor conclusion
EPC contracts are becoming one of the most important legal documents in Romanian renewable energy projects. As Romania moves from development pipeline to construction delivery, investors and lenders will increasingly focus on whether projects can be built on time, on budget and in full compliance with grid, permitting and ANRE requirements. A weak EPC contract can destroy the value of a strong project. A strong EPC contract can protect the value created by land, permits, ATR, GCA, financing and route-to-market. For solar projects, the key risks are scope, grid connection, performance ratio and COD delay. For BESS projects, the key risks are safety, degradation, EMS/BMS, availability and revenue functionality. For PV+BESS projects, the key risk is integration. For CfD-backed projects, the key risk is missing support deadlines. For project-financed assets, the key risk is whether the EPC is bankable. In Romania, renewable energy EPC is no longer just construction. It is the legal bridge between a permitted project and an operating asset. And in 2026, that bridge must be drafted very carefully.
Related reading and services
This article is part of the Romanian energy law content cluster. For the commercial route into a mandate, start with Energy Law in Romania and the Renewable Energy Legal Services page.
How Grigorescu Partners can help
Grigorescu Partners assists investors, developers, lenders and project owners with Romanian renewable energy projects, including legal due diligence, grid connection review, ANRE licensing, PPAs, EPC and O&M contracts, project acquisitions, project finance support and transaction execution.
If you are assessing a Romanian renewable energy project, the useful question is not only whether the project has documents. The useful question is whether those documents work together as a buildable, financeable and monetisable energy asset.