Romania is introducing payments for electricity consumers willing to reduce demand during tight market periods, as the country expands demand-side flexibility in response to drought-related generation shortages. The new approach is linked to disruptions affecting nuclear output following severe drought conditions.
Transelectrica auctions for demand reduction
The mechanism will enable consumers, electricity suppliers and aggregators to submit bids for volumes of demand reduction through auctions organised by transmission system operator Transelectrica. Auction participants will state how much consumption they are prepared to cut and the compensation required. The design allows demand-side resources to be activated during periods of system stress.
Drought impacts at Cernavodă nuclear plant
The policy shift follows severe drought and low Danube levels that disrupted production at the Cernavodă nuclear plant. Cernavodă normally supplies about 20% of Romanian electricity. Authorities have been examining infrastructure options that could divert additional water toward the plant’s cooling-water intake.
Coal capacity returns and closure plans reviewed
Romania has responded by returning coal-fired capacity at Rovinari and Paroșeni to operation. It is also seeking to postpone the planned closure of another unit at Turceni. These steps are intended to address generation shortfalls created by drought-related constraints on nuclear production.
System security powers and export restrictions
Transelectrica has also received powers that could allow it to restrict electricity supply to large industrial users or curb exports if system security deteriorates significantly. In parallel, the authorities are assessing infrastructure that could support additional water diversion toward the Cernavodă cooling-water intake. The measures reflect a broader operational focus on managing scarcity conditions.
Batteries, interconnection and controllable demand in scarcity management
The developments underline a broader change in Romania’s electricity strategy, moving beyond reliance solely on additional generation. The system is increasingly combining batteries, interconnection capacity and controllable demand to manage periods of scarcity. This shift is expected to matter as Romania adds large amounts of solar and wind capacity while hydro and nuclear generation face climate-related pressure.
