The transition to renewable energy is one of the most critical undertakings of our generation, both for fighting climate change and for creating a resilient, future-ready economy. Romania and Hungary are no exception. Both countries have pledged bold targets for 2030: Romania aims for 30.7% and Hungary for at least 21% renewable energy in their energy mixes, in line with their National Energy and Climate Plans. On top of this, the European Union is pushing for a 32.5% improvement in energy efficiency by 2030, and climate neutrality by 2050 through the European Green Deal.
The Boom in Solar Energy – And Its Side Effects
The solar energy sector in Hungary and Romania has experienced remarkable growth in recent years. By early 2025, Hungary's cumulative installed solar capacity surpassed 7.5 GW, marking a significant increase from previous years. In 2024 alone, Hungary added approximately 1.4 GW of new solar capacity, with utility-scale installations accounting for about half of this growth. This expansion has positioned Hungary as a leader in solar energy within Europe, with solar power contributing to 25% of the country's electricity generation in 2024—the highest share among EU member states. (https://www.pv-magazine.com/2025/04/04/hungary-adds-1-4-gw-of-solar-in-2024/ )
Romania has also made significant strides in solar energy development. In 2024, the country installed 1.7 GW of new solar capacity, bringing its total installed capacity to nearly 5 GW. This growth has been driven by increased funding, higher renewable energy targets, and streamlined permitting processes. The Romanian Photovoltaic Industry Association (RPIA) reports that distributed generation, including rooftop installations, accounted for a substantial portion of this expansion. (https://www.pv-magazine.com/2025/01/31/romanias-2024-solar-additions-hit-1-7-gw/ )
While this rapid expansion of solar capacity is a positive development for renewable energy adoption, it also presents challenges. The intermittent nature of solar power generation can lead to periods of oversupply, particularly during peak production hours. For instance, in July 2023, Hungary experienced negative electricity prices, reaching as low as -500 EUR/MWh, due to excess solar generation. Such instances highlight the need for efficient energy storage solutions to balance supply and demand, ensuring that excess energy is stored for later use rather than wasted.
Grid Stability Challenges in Hungary and Romania: Navigating the Renewable Surge
As Hungary and Romania accelerate their transition to renewable energy, both nations are encountering significant challenges in maintaining grid stability. The rapid integration of solar and wind power has introduced complexities in balancing supply and demand, necessitating substantial investments in infrastructure, storage solutions, and regulatory reforms.
Hungary: Addressing Grid Imbalances Amidst Renewable Growth
By early 2025, Hungary's installed solar photovoltaic (PV) capacity had surpassed 7.5 GW, accounting for approximately 25% of the country's electricity generation—the highest share among EU member states. While this marks a significant achievement in renewable energy adoption, it has also led to grid imbalances, particularly during periods of peak solar production.
To mitigate these challenges, Hungary is investing €150 million into approximately 50 grid-scale energy storage projects, aiming to add 440 MW of storage capacity by April 2026. These projects are expected to enhance the grid's flexibility and resilience, allowing for better integration of intermittent renewable sources. (Central European Times).
Additionally, Hungary's transmission system operator has implemented measures to procure additional reserves, ensuring stability amidst the growing reliance on weather-dependent power plants. (https://www.wolftheiss.com/app/uploads/2024/05/RES-guide-hungary.pdf ) Efforts are also underway to modernize the grid infrastructure and introduce innovative market practices to accommodate the evolving energy landscape. (https://cms.law/en/int/expert-guides/cms-expert-guide-to-renewable-energy/hungary )
Romania: Modernizing Infrastructure to Support Renewable Integration
In 2024, Romania added 1.7 GW of new solar capacity, bringing its total installed capacity to nearly 5 GW. This rapid expansion has underscored the need for a more robust and flexible grid infrastructure. The country's existing transmission network faces challenges in accommodating the increasing volume of renewable energy, leading to instances of curtailment where excess energy cannot be utilized effectively.
To address these issues, Romania's national electricity transmission company, Transelectrica, has introduced a draft ordinance aimed at accelerating the development of transmission projects, particularly those financed by European funds. This initiative seeks to classify certain projects as of national importance, streamlining permit approvals and administrative processes.
Furthermore, Romania approved the Energy Storage Law (OUG No. 134/2024) in 2024, eliminating unnecessary taxes on stored energy and facilitating investments in battery systems and long-duration storage technologies. These measures aim to enhance grid stability and support the continued growth of renewable energy sources. Strategic Energy Europe
Collaborative Efforts and Future Outlook
Both Hungary and Romania recognize the importance of regional cooperation in achieving energy security and grid stability. By investing in energy storage, modernizing grid infrastructure, and implementing supportive regulatory frameworks, the two countries are taking proactive steps to ensure that the transition to renewable energy is both sustainable and resilient.
As the renewable energy landscape continues to evolve, ongoing collaboration and innovation will be crucial in addressing the challenges of grid stability and ensuring a reliable energy supply for the future.
Why Energy Storage Is the Missing Link in the Renewable Transition
The rapid expansion of renewable energy sources, particularly solar and wind, in Hungary and Romania has brought about significant challenges in maintaining grid stability and ensuring efficient energy utilization. Energy storage systems, especially Battery Energy Storage Systems (BESS), have emerged as essential solutions to address these challenges.
Hungary's Strategic Investments in Energy Storage
Hungary has recognized the critical role of energy storage in stabilizing its increasingly renewable-heavy grid as the previous chapter refers to these mitigation actions. The aforementioned projects are designed to mitigate grid congestion and reduce reliance on neighboring countries during peak demand periods.
Furthermore, regulatory advancements have facilitated the deployment of co-located BESS projects. Amendments to the Hungarian Electricity Act and updates to the Transmission System Operator MAVIR’s Operational Code have established a more accommodating framework for these systems, enhancing grid stability and maximizing renewable energy utilization.( https://www.wolftheiss.com/insights/charging-ahead-hungarys-newly-introduced-rules-fuel-co-located-bess-expansion/ )
Private sector initiatives are also contributing to Hungary's energy storage landscape. For instance, MET Group is developing a 40 MW/80 MWh BESS in Százhalombatta, utilizing lithium iron phosphate (LFP) technology, with commissioning expected in the summer of 2025. LinkedIn
Romania's Ambitious Energy Storage Goals
Romania is also making significant strides in energy storage to support its renewable energy integration. The government has set a target to install at least 2,000 MW of battery storage capacity by 2030, with an optimal goal of reaching 3,000–4,000 MW, translating to approximately 20,000 MWh of storage capacity. (https://energyworld.ro/2025/04/24/the-capacity-of-energy-storage-batteries-in-romania-is-approaching-the-400-mwh-threshold-how-much-do-we-need/ )
Legislative measures, such as the approval of the Energy Storage Law (OUG No. 134/2024), have been implemented to eliminate double taxation on stored energy and encourage investments in battery systems and long-duration storage technologies. - Strategic Energy Europe
Notably, Prime Batteries Technology is supplying a 72 MWh lithium-ion BESS for Hidroelectrica’s Crucea Nord Wind Farm in Constanța County. This project aims to improve the flexibility and efficiency of renewable energy integration into Romania's grid and is expected to become fully operational within 12 months. (https://innoenergy.com/news-resources/prime-batteries-technology-to-deliver-72-mwh-storage-system-for-hidroelectricas-first-battery-project-in-romania/ )
The Broader Impact of Energy Storage
Energy storage systems provide multiple benefits beyond grid stabilization. They enable the efficient use of surplus renewable energy, reduce curtailment, and enhance energy security by providing backup power during outages. Moreover, they facilitate the integration of prosumers and support the development of energy communities, contributing to a more decentralized and resilient energy system.
As Hungary and Romania continue to advance their renewable energy agendas, the deployment of robust energy storage solutions will be pivotal in ensuring a stable, efficient, and sustainable energy future.
Aligning Local Momentum with European Ambitions: Policy-Driven Acceleration in Hungary and Romania
The rapid expansion of renewable energy in Hungary and Romania is not occurring in isolation; it is deeply intertwined with broader European Union strategies aimed at achieving climate neutrality and energy independence. Central to this alignment are the REPowerEU Plan and the Net-Zero Industry Act (NZIA), both of which provide financial support and regulatory frameworks to facilitate the energy transition in these member states. – Energy Storage News
REPowerEU: Catalyzing Clean Energy Investments
Launched in response to the energy crisis exacerbated by geopolitical tensions, the REPowerEU Plan aims to reduce the EU's dependence on fossil fuels by accelerating the deployment of renewable energy and enhancing energy efficiency. Under this initiative, Hungary and Romania have received substantial funding to support their energy transitions. For instance, Romania has allocated an additional €150 million for electricity storage batteries, aiming to bolster its energy storage capacity and grid stability. Similarly, Hungary has submitted its REPowerEU chapter to support investments in energy transition, focusing on integrating renewable energy sources and modernizing its energy infrastructure.
Net-Zero Industry Act: Streamlining Clean Tech Manufacturing
The Net-Zero Industry Act, adopted by the European Parliament and Council, seeks to strengthen the EU's manufacturing capacity for clean energy technologies, including batteries and energy storage systems. The Act introduces measures to simplify permitting processes, aiming to expedite the development of strategic projects. For example, the time limit for permitting construction or expansion of manufacturing projects with a capacity of larger than 1GW is set at 18 months, while projects smaller than 1GW have a 12-month limit. These streamlined procedures are expected to facilitate the growth of energy storage manufacturing in Hungary and Romania, supporting their domestic energy needs and contributing to the EU's overall climate goals.
Cross-Border Collaboration: Enhancing Regional Energy Security
Beyond national efforts, Hungary and Romania are engaging in cross-border collaborations to enhance regional energy security and diversify energy sources. A notable example is the joint venture between Azerbaijan, Georgia, Romania, and Hungary to construct a 1,100 km subsea interconnector across the Black Sea. This project aims to link planned Azeri wind farms to Europe, providing an alternative energy supply route and reducing dependence on traditional fossil fuels. - Reuters
These initiatives underscore the commitment of Hungary and Romania to align with EU energy policies, leveraging both European support and local capabilities to advance their energy transitions. By integrating renewable energy, expanding energy storage, and participating in regional collaborations, these countries are contributing to a more sustainable and secure European energy landscape.
What’s at Stake: The Future of Energy Security, Climate, and Daily Life
The transition to a renewable energy future in Hungary and Romania is about more than just meeting EU targets—it will directly shape the region’s energy security, economic prospects, and environmental health for decades to come. Getting energy storage, grid upgrades, and renewable integration right will deliver clear benefits, while failure to act will bring tangible risks for citizens, businesses, and governments alike.
Economic Stability and Competitiveness
A flexible, resilient power system underpinned by robust energy storage is vital for maintaining stable electricity prices. Recent episodes in Central and Eastern Europe have shown how grid bottlenecks and renewable curtailment can lead to wild price swings, even forcing Hungary to pay neighboring countries to take excess electricity to avoid blackouts (Central European Times, 2025). Conversely, countries that invest in storage and modernize their grids can attract green industry, create new jobs, and benefit from lower, more predictable energy bills.
Energy Independence and Security
Europe’s recent energy crises have made it clear: dependence on fossil fuel imports, especially from geopolitically unstable regions, is a vulnerability. By maximizing the use of local renewable resources—backed by storage and flexible infrastructure—Hungary and Romania can insulate themselves from global price shocks and supply disruptions. Projects like the cross-border Black Sea subsea interconnector (linking Azerbaijan’s renewables to the region) further diversify supply and enhance security (Reuters, 2024).
Climate Action and Environmental Benefits
The climate stakes are real and immediate. Buildings alone account for 40% of energy consumed and 36% of energy-related greenhouse gas emissions in the EU (European Commission). Every kilowatt-hour of renewable energy stored and used locally is one less generated by polluting fossil fuels, cutting air pollution, reducing respiratory illness, and making cities more livable. Failure to balance renewables with storage, on the other hand, will increase curtailment and slow progress toward the EU’s climate neutrality goals for 2050.
Social Impact and Public Wellbeing
A modern, stable grid and affordable green energy support social equity. Lower, stable energy bills help protect vulnerable consumers. Well-managed renewables and grid upgrades mean fewer power outages and more reliable services, from schools to hospitals.
The choices Hungary and Romania make now will determine whether they become leaders in Europe’s clean energy transformation—or risk falling behind. Investments in energy storage, grid modernization, and cross-border cooperation are not just technical upgrades: they are essential building blocks for a secure, healthy, and competitive future. The time to act is now.
