Romania allocates EUR 250 mln from Modernisation Fund to smart meters and energy storage

Romania will allocate EUR 250 million from the EU Modernisation Fund to expand electricity storage capacity and accelerate the rollout of smart meters, acting prime minister and energy minister Ilie Bolojan announced on July 18.

The funding will be split between a EUR 100 million programme for smart electricity meters and a EUR 150 million state aid scheme supporting stand-alone battery storage projects. Both measures are intended to reduce electricity costs and strengthen the resilience of the power system by 2030.

"The new allocation of EUR 250 million, in the form of European grants from the Modernisation Fund, will support the optimisation of energy consumption, so that the cost of the energy bill will be reduced in the coming period," Bolojan said in a Facebook post.

The EUR 100 million smart metering programme will be implemented through a non-competitive call open to Romania's four electricity distribution operators: Distribuție Energie Electrică România, Delgaz Grid, Rețele Electrice România and Distribuție Oltenia. The programme aims to install more than 800,000 smart meters, enabling billing based on actual consumption while reducing network losses and electricity theft.

The application window will run from August 3 to December 2, 2026, with projects expected to be completed by the end of 2029.

The second programme allocates EUR 150 million to support stand-alone electricity storage facilities through a competitive auction based on the lowest cost per MWh of installed capacity. Financial support will be capped at EUR 69,000 per MWh and EUR 15 million per company.

The scheme aims to add at least 2,174 MWh of battery storage capacity, improving grid stability and helping moderate electricity prices during peak evening demand. Applications will be accepted between September 1 and October 30, 2026, with completion targeted by the end of 2030.

The announcement follows Romania's signing earlier this month of a tripartite agreement with the European Union covering the rapid expansion of energy storage between 2026 and 2028, aimed at improving energy security and maintaining competitive electricity prices for households and industry.

iulian@romania-insider.com

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