The Romanian Ministry of Energy has finalized a five-point plan aimed at lowering electricity prices, with measures expected to take effect next week. Energy Minister Bogdan Ivan stated that the initiative, developed in consultation with producers, distributors, suppliers, and regulators, is expected to reduce household and business energy costs by an average of 20 to 25 percent within six months.
Minister Ivan noted that decades of policy decisions, including the early closure of around 7,000 MW of coal- and gas-fired power plants without adequate replacement, left Romania heavily dependent on imports, particularly during evening peak demand when prices are highest. Only about 1,200 MW of that lost capacity has been replaced, forcing the country to import roughly 20 percent of its electricity.
To address this gap, the Ministry has reviewed stalled energy projects, some over 20 years old, and is working to resolve legal and permitting delays. Major projects under development include 700 MW of gas capacity at TPP Iernut and the privately led Mintia gas-fired power plant. Combined, these projects could add 1,800–2,000 MW to the network within 18 months.
The plan also targets market inefficiencies. Currently, just over half of an electricity bill reflects the actual cost of electricity, with the remainder made up of tariffs, transport, VAT, and fees. Minister Ivan said the measures are designed to reduce unnecessary intermediaries and speculative costs. Reforms include stricter rules for forward contracts, requiring a 10 percent guarantee, and a simplified market structure linking state-owned producers such as Hidroelectrica and Nuclearelectrica more directly with major suppliers.
Additionally, a market maker mechanism will be introduced, with a large producer serving as a stabilizing reference point to ensure fairer pricing. According to Minister Ivan, the combined effect of these reforms should result in noticeable price reductions within six months while enhancing Romania’s long-term energy security.
