Updates to the Grid Capacity Tenders for Projects ≥ 5 MW
In mid-2024, the Romanian Energy Regulatory Authority (“ANRE”) adopted the Methodology for the competitive allocation of grid connection capacity1 (the “ANRE Methodology”), set to enter into force on January 1, 2026. Under this framework, the Transmission and System Operator (“TSO”) was required to prepare, by July 1, 2025, both the implementation procedure and the operational guide for the auction platform.
Following several months of delay, on October 3, 2025, TSO published the Procedure for the Allocation of Grid Capacity for the Connection of Generation Units (the “TSO Procedure”), available here. In substance, the TSO Procedure largely mirrors the ANRE Methodology, introducing only a limited number of additional procedural clarifications.
As to the auction platform, it seems that no dedicated auction platform will be developed, and the auction will instead be conducted via e-mail and the TSO’s website.
On the one hand, the new auction system brings several positive developments — greater predictability regarding the grid development works required for connection and increased accountability of the grid operators in completing such works on time. This marks a notable improvement over the current ATR framework, which offers no clear accountability for the timely execution of development works included in development plans of grid operators and leaves significant uncertainty regarding the completion of works that are not included in any such plans.
On the other hand, several concerns remain, including:
the potential for higher connection costs, as auction prices may exceed the actual cost of the required development works and may cover works that become redundant following the expiry of other ATRs, given the absence of any recalculation mechanism;
the risk of limited grid access during the first years of implementation due to insufficient available capacity;
the misalignment of the auction timeline with overall project development milestones, which may increase risks for investors;
the uncertainties regarding the coordination of the auction with the broader grid connection process.
1. APPLICATIONS COVERED BY AUCTION
The auction process applies to the following applications:
new generation/combined generation and consumption units with or without storage facilities ≥ 5 MW;
new standalone storage installations ≥ 5 MW;
increasing the capacity of existing generation units/combined generation and consumption units by adding new generation or storage installations ≥ 5 MW;
adding to existing consumption units of new generation/storage installations ≥ 5 MW.
Due to inconsistencies between the TSO Procedure and the ANRE Methodology, it remains unclear whether the following applications are subject to the auction process:
the addition of co-located storage facilities to existing generation units where only absorption capacity (not evacuation capacity) is increased by at least 5 MW; and
connection applications to the medium-voltage grid.
2. AUCTION PROCESS AND TIMELINE
Auctions will be organized annually (Year Y), covering a 10-year allocation period beginning two years after the auction (Year Y+2):
15 January: TSO conducts the first stage of the global solution study to determine available capacity without grid development works, by grid zone at 400kV/220kV/110kV levels and allocation year;
16 January – 28/29 February: Investors submit bids for capacity allocation in the relevant grid zone and allocation year corresponding to the envisaged commissioning year;
15 March: TSO publishes all complete bids per grid zone and allocation year;
15 June: TSO completes the second stage of the global solution study, identifying the necessary development works for all bids filed and publishes the results including capacity requested by investors, available capacity (with and without development works), estimated value and commissioning year for each development work, auction starting price and auction dates;
15–28 June: Submission of bid bonds;
From 1 July: Daily auction sessions organized for each year of the 10-year allocation period;
Within 5 business days after the auction: TSO submits signed allocation contracts to successful bidders;
Within 5 business days of receipt: Successful bidders must submit to TSO/DSO the signed contracts and performance bond.
3. AUCTION SCENARIOS
3.1. Scenario A – Total bids fit within available capacity without grid development works
All bids accepted;
No auction price due;
Unallocated capacity carried over to the following year.
3.2. Scenario B – Total bids exceed available capacity without development works, but fall within the capacity with development works
All bids accepted;
Auction starting price due (calculated as the total estimated value of development works divided by total available grid capacity);
Unallocated capacity carried over to the following year with corresponding recalculation of the following year auction starting price.
3.3. Scenario C – Total bids exceed available capacity with development works
Bids accepted in descending order of bid price, within available capacity limits;
Bid price due;
Rejected bidders may choose between (i) securing capacity in the next allocation year against the bid price; (ii) participating in the next year’s auction; or (iii) withdrawing.
3.4. Scenario D – Total bids exceed capacity without development works, and no development works are available in the respective allocation year
Future development works (commissioned in the next allocation year) are considered for determining available capacity and auction starting price;
Bids accepted in descending order of bid price, within available capacity;
Bid price due;
Rejected bidders may choose between (i) securing capacity in the next allocation year against the bid price; (ii) participating in next year’s auction; or (iii) withdrawing.
4. FINANCIAL GUARANTEES
Bid Bond: 1% of the auction starting price multiplied by the bid capacity
Performance Bond: 1% of the contract allocation price
Form: Direct payment to TSO or letter of guarantee issued by credit institutions recognised by the Romanian National Bank
It remains to be clarified whether the TSO will allow the Bid Bond to be increased to match the Performance Bond, avoiding the need for overlapping guarantees for a short period.
5. ALLOCATION AGREEMENT
Template: The allocation agreement will be based on a standard template to be agreed between the TSO and DSOs, reflecting the minimum terms set out in the TSO Procedure and ANRE Methodology;
Payment Terms: At least 20% of the contract price must be paid within 30 days from the contract signing, with the remaining balance due no later than 4 months from the signing date;
Delay Penalties: Daily penalties of 0.01% of the contract price are due (i) by grid operator for delays in completing development works, provided the investor meets the project commissioning deadline and (ii) by investors for delays in project commissioning, provided the grid operator meets its development schedule;
Termination for Late Commissioning: Allocation contract will be automatically terminated if project commissioning is delayed by more than 5 years.
