Legal guide to Romania's 2026 grid capacity allocation regime for BESS investors, covering auctions, guarantees, ATR, ANRE authorisation, timing risk and project bankability.
There is a moment in the life of every energy project when everything still looks possible.
There is a moment in the life of every energy project when everything still looks possible.
The land has been identified. The first discussions with the landowner have started. The preliminary technical assumptions look promising. On paper, the project makes sense: 20 MW, 50 MW, maybe even 100 MW of battery storage. The market needs flexibility. Investors are looking more closely at BESS. Romania has volatility, congestion, increasing renewable penetration and a clear need for balancing and flexibility.
And yet, before the financial model, before the EPC contract, before the batteries, before the financing, there is one simple question that can decide the fate of the entire project:
Do you have grid capacity?
From 2026 onwards, the answer to this question will no longer be obtained only through the old-style grid connection process. For large projects, including stand-alone BESS projects, grid capacity becomes a scarce, competitive and financially conditioned asset.
In other words, grid capacity is no longer something developers simply “reserve”.
They compete for it.
1. Why this reform matters
For many developers, grid connection used to be treated as a technical phase: file the application, run the solution study, wait for the technical connection approval, then move on to permitting, financing and construction.
The new framework changes that logic.
Romania has introduced a methodology for the allocation by auction of grid capacity for new electricity generation projects and storage projects. The mechanism is designed to move the market away from a speculative “queue” model and towards a more disciplined system, where access to capacity is conditioned by project maturity, financial commitment and competitive allocation.
For a BESS investor, the message is simple:
it is no longer enough to have good land; you must also secure the right to inject into the grid.
And that right now comes through a structured process, with fixed deadlines, significant financial guarantees, payment obligations and serious consequences if the project does not move forward.
2. When does a BESS project fall under the capacity allocation procedure?
The key threshold is 5 MW.
The capacity allocation methodology applies to:
- new generation sites with an installed capacity equal to or above 5 MW
- additional export capacity requested for existing sites where new generation or storage capacities of at least 5 MW are added
- generation or storage capacities of at least 5 MW connected to an existing consumption site.
This is particularly important for BESS projects. The methodology uses the concept of a “generation site” broadly and includes, where relevant, an individual storage facility.
This means that a stand-alone BESS project of 10 MW, 20 MW, 50 MW or 100 MW should not be treated as being outside the allocation mechanism simply because it is not a classic solar or wind power plant. If it has an export component and exceeds the 5 MW threshold, it falls within the logic of grid capacity allocation.
In practical terms:
- BESS projects below 5 MW remain closer to the traditional connection procedure
- BESS projects of 5 MW or more must be assessed under the capacity allocation rules
- BESS projects above 1 MW will, in any event, trigger important rules on guarantees, technical connection approvals, ANRE establishment authorisation and development deadlines.
3. The special 2026 calendar
The year 2026 is not a normal year. It is the first year of effective implementation of the new mechanism, which is why the applicable calendar is a special transitional one.
For developers, these are the dates that matter:
| Date / deadline | What happens | What the developer must do |
|---|---|---|
| 30 June 2026 | Publication of available grid capacity | Review the available network zones, available capacity and target commissioning years |
| 14 July 2026 | Deadline for submitting capacity allocation applications | Submit the application, identify the site and provide the participation guarantee |
| 20 July 2026 | Distribution operators send complete applications to the TSO | For projects of up to 50 MW, monitor validation at distribution operator level |
| 24 July 2026 | Finalisation of eligible applications | Confirm that the project enters the allocation process |
| 23 October 2026 | Completion of the global solution study | Understand the real available capacity, required additional works and starting price |
| 30 October 2026 | Start of auctions | Submit the bid and compete for capacity |
| After the auction | Signing of the capacity allocation contract | Sign the contract and provide the payment guarantee |
| 30 days from contract signing | First payment milestone | Pay at least 20% of the allocation contract value |
| Maximum 4 months from contract signing | Full payment | Pay the full allocation contract value |
In practice, 14 July 2026 is the first serious test.
By that date, the project must be sufficiently mature to enter the race. It does not need to be ready-to-build. It does not need to have all permits. But it must have a real location, a defined capacity, clear coordinates, a grid strategy and the financial ability to provide the participation guarantee.
4. Where is the application submitted?
The practical rule is straightforward:
- for projects of up to and including 50 MW, the application is submitted to the relevant distribution operator
- for projects above 50 MW, the application is submitted to the TSO, Transelectrica.
This creates an important strategic point.
A 50 MW project may remain, in principle, within the distribution operator interface. A 50.1 MW project moves into the TSO interface. That difference may look minor technically, but procedurally and commercially it may affect the analysis, the institutional route, the timetable and the grid risk profile.
This is why BESS sizing should not be based only on revenue modelling.
It must be done together with the grid connection strategy.
5. What must the allocation application contain?
At this stage, the developer does not yet submit a full technical connection approval file or a full ANRE establishment authorisation file. But the application is not merely a general expression of interest either.
In practical terms, the developer should be ready with:
A key question for developers is: can I apply without secured land?
Strictly at the allocation application stage, the focus is on identifying the location and coordinates. However, in practice, applying with a site that is not legally controllable is dangerous.
Once capacity is allocated, the project must move into the connection process. At that point, land rights, cadastral documents, urban planning constraints and consistency of the location become critical.
The practical recommendation is clear:
do not enter the auction with a site that you cannot legally control.
A developer may win capacity and then discover that the land cannot be secured, cannot support the project, has urban planning limitations, cadastral issues, environmental constraints, servitudes or overlapping rights.
In that scenario, the allocated capacity becomes not an asset, but a liability.
6. The EUR 20,000/MW participation guarantee: the first real filter
The first major financial filter in the 2026 allocation mechanism is the participation guarantee.
For 2026, the amount is:
EUR 20,000/MW of requested allocated capacity
This is not calculated by reference to the final auction price. It is calculated by reference to the capacity requested by the developer. The amount is converted into RON using the National Bank of Romania exchange rate applicable on the date when the guarantee is issued.
Simple examples:
| BESS capacity requested | 2026 participation guarantee |
|---|---|
| 5 MW | EUR 100,000 |
| 10 MW | EUR 200,000 |
| 20 MW | EUR 400,000 |
| 50 MW | EUR 1,000,000 |
| 100 MW | EUR 2,000,000 |
This is why the guarantee matters.
For a 50 MW BESS project, before the developer knows whether it will actually win capacity, it must be able to support a guarantee of approximately EUR 1 million. For a 100 MW project, the figure becomes EUR 2 million.
That is no longer a symbolic administrative requirement.
It is a real capital discipline mechanism.
7. What form must the EUR 20,000/MW guarantee take?
The participation guarantee is constituted in favour of the TSO.
In practical terms, according to the Transelectrica capacity allocation procedure, it may be provided in one of the following forms:
- direct payment to the TSO
- bank guarantee letter
- other instruments allowed under the applicable regulations.
The guarantee must be irrevocable, unconditional and payable on first demand, meaning that if the enforcement conditions are met, the TSO must be able to execute it without going through a long dispute on the merits.
Where the guarantee is issued by a financial institution, the Transelectrica procedure indicates that it may be issued by:
- a Romanian bank
- an international banking financial institution
- a financial institution registered in the European Union or the European Economic Area, authorised to operate in Romania, with a minimum credit rating of BBB by S&P or equivalent.
If the guarantee letter is electronically signed, the user must also provide the certificate or equivalent document allowing validation of the signature. If it is issued in original hard-copy form by a banking institution, the original must also be submitted to the TSO, in addition to the upload on the platform.
This point is practical, not theoretical.
A weak, conditional or incorrectly drafted guarantee can become a problem before the project even reaches the auction.
8. How long is the EUR 20,000/MW guarantee blocked?
This is one of the most important commercial points.
The EUR 20,000/MW guarantee is not a long-term project guarantee. It is a participation guarantee for the allocation process.
For 2026, since the application deadline is 14 July 2026 and the auction process starts on 30 October 2026, the guarantee is effectively blocked from the filing stage until the relevant auction outcome.
If the bidder loses the auction, the guarantee must be returned within 2 working days from the closing of the auction.
If the bidder wins, the guarantee must be returned within 2 working days from the date when the TSO receives the capacity allocation contract signed by the user.
So, in a losing scenario, for the 2026 cycle, the guarantee may be blocked for roughly three and a half months, plus the short return period after the auction.
In a winning scenario, the guarantee should be released shortly after the developer signs and returns the allocation contract.
But winning creates a new financial obligation.
The developer must sign the allocation contract and provide the separate financial guarantee for payment of the allocated capacity. If the developer fails to send the signed allocation contract together with proof of that separate payment guarantee within the applicable deadline, the participation guarantee may be enforced and the allocated capacity is lost.
This is the key commercial point:
the EUR 20,000/MW guarantee is temporary if the process is followed correctly, but it becomes immediately at risk if the bidder wins and then fails to move forward.
9. The global solution study: when the market discovers the real cost of the grid
After the applications are submitted, the TSO does not assess each project in isolation as in a traditional connection process. Instead, it carries out a global solution study at network-zone level.
This study determines:
This is the moment when developers discover whether the chosen area is reasonable, expensive or potentially unbankable.
The starting price is not arbitrary. In essence, it reflects the ratio between the estimated value of additional grid development works and the available capacity resulting from those works.
This leads to a crucial conclusion:
two identical BESS projects may have completely different grid access costs simply because they are located in different network areas.
A BESS project in an area with available capacity and limited reinforcement needs may face a relatively low allocation cost. A BESS project in a congested area requiring major additional works may become significantly more expensive — or even commercially unattractive.
10. How the auction works
In 2026, auctions start on 30 October.
They should not be imagined as a traditional auction room where bidders raise paddles. The process is electronic, organised by the TSO, with sessions for the relevant years within the allocation period.
Each participant submits a price per MW, meaning the maximum price it is willing to pay for the requested grid capacity.
There are several possible outcomes.
If total applications are lower than or equal to the available capacity, there may be no real competition: all applications can be accepted, potentially at zero price if no additional works are required.
If capacity is available only through additional works, the starting price reflects the cost of those works.
If total demand exceeds available capacity even after additional works are considered, the real competition begins: bids are ranked by price and capacity is awarded until the available amount is exhausted.
For investors, this fundamentally changes the financial analysis.
A BESS model can no longer include only battery CAPEX, EPC, land, O&M and revenue assumptions from arbitrage, balancing or ancillary services. It must also include the cost of securing grid capacity.
And that cost may be decisive.
11. What happens after winning capacity?
Winning the auction does not mean that the project has a technical connection approval.
It means that the project has obtained the right to move forward in the connection process based on the allocated capacity.
The next steps are:
This is where one of the main risks appears.
If the developer wins the auction but does not sign the allocation contract or does not provide the payment guarantee, it loses the allocated capacity and the participation guarantee may be enforced.
If the developer signs the contract but does not pay the instalments on time, it also risks losing capacity and the related guarantees.
Therefore, the auction should not be treated as a “let’s see what happens” exercise.
It should be treated as an investment decision.
12. The next layer of financial exposure: payment obligations after winning
The EUR 20,000/MW participation guarantee is only the first step.
Once the bidder wins, the real financial exposure moves to the allocation contract.
The value of the allocation contract is calculated by multiplying the allocated capacity by the relevant price resulting from the procedure.
After that, the developer must be ready for:
- a separate payment guarantee, generally equal to 1% of the allocation contract value
- payment of at least 20% of the allocation contract value within 30 days
- full payment of the allocation contract value within a maximum of 4 months.
This means that a developer should not enter the auction only because it can provide the participation guarantee.
It must also be ready to fund the next step.
Otherwise, winning can become expensive.
13. The link with the technical connection approval and ANRE authorisation
Once the allocation contract is signed, it becomes a key document for the grid connection procedure for projects of at least 5 MW.
But the pressure does not stop there.
For projects with approved export capacity above 1 MW, the developer must obtain the ANRE establishment authorisation within strict deadlines:
- by the date of signing the execution contract for the connection works
- but no later than 12 months from signing the grid connection agreement
- and no later than 18 months from the issuance of the technical connection approval.
There are mechanisms for extension, but they should not be treated as automatic rights. They must be justified, documented and carefully managed.
The consequence of missing these deadlines is severe: the technical connection approval may cease to be valid and the grid connection agreement may terminate by operation of law.
From a lender’s perspective, this is a major change.
A project is not valuable simply because it has a technical connection approval. What matters is whether that approval is still alive, whether the deadlines are being met and whether the ANRE authorisation is obtained in time.
14. Do not confuse the guarantees
One of the biggest practical risks in 2026 is to confuse the different guarantees.
They are not the same.
They apply at different stages, in favour of different beneficiaries, and with different release or enforcement conditions.
| Guarantee | When it appears | Indicative amount | Beneficiary / purpose |
|---|---|---|---|
| Participation guarantee | At capacity allocation application stage | EUR 20,000/MW requested | Supports serious participation in the allocation process |
| Payment guarantee | After winning capacity, before/with allocation contract | Usually 1% of allocation contract value | Secures payment of allocated capacity |
| Grid connection guarantee | In the technical connection approval / connection stage | Percentage of the grid connection tariff | Secures performance of grid connection obligations |
| ANRE establishment authorisation guarantee | At ANRE establishment authorisation stage | EUR 30/kW installed capacity | Secures implementation of the authorised project |
For a BESS developer, these guarantees must be modelled as part of the project’s capital requirements.
They may not all represent final costs if the project is implemented correctly. But they are real liquidity, credit line or bankability requirements.
15. How much can it cost to enter the race?
Take a simple example: a 50 MW stand-alone BESS project.
Only for the capacity allocation stage, the developer must consider:
Then come the costs and guarantees linked to the technical connection approval, the grid connection agreement and the ANRE establishment authorisation.
For a 50 MW project, the later ANRE establishment authorisation guarantee alone may amount to EUR 1.5 million, calculated at EUR 30/kW, depending on the installed capacity reflected in the technical connection approval.
The conclusion is straightforward: in 2026, developing a large BESS project in Romania is no longer a cheap option strategy.
It becomes capital intensive from the grid access stage.
16. What should be done before 14 July 2026?
For a BESS developer or investor, the practical checklist is the following:
The biggest mistake would be to treat the allocation procedure as a simple formality.
In reality, the choice of area, capacity and commissioning year are legal, technical and commercial decisions that directly affect project value.
17. What investors should ask before entering the auction
Before filing the capacity allocation application, investors should ask at least the following questions:
This is not only a legal exercise.
It is a commercial stress test.
18. Conclusion: who wins under the new system?
The new system is not necessarily bad for the market. On the contrary, it may clean up speculative projects and push real projects forward.
But it will change the hierarchy.
The winners will be those who:
In 2026, the question is no longer only:
“Can we build a BESS project?”
The real question becomes:
“Can we win and keep the grid capacity for that BESS project?”
Because under the new Romanian framework, grid capacity is the first real layer of project value.
The battery can be bought. The EPC can be negotiated. The financing can be structured.
But without grid capacity, the project remains only a promising idea on a map.