Romania is rolling out a formal demand-response mechanism that enables electricity consumers to receive compensation for temporarily reducing consumption when the power system needs additional flexibility. The framework has been approved by the energy regulator ANRE. The transmission system operator Transelectrica will use the mechanism as an alternative to increasing generation or imports during periods of tight supply.
How Transelectrica will procure demand reduction
Under the scheme, Transelectrica will set the required volume of demand reduction. Eligible consumers, suppliers and other market participants will then submit competitive offers that specify both how much consumption they can reduce and the price they are willing to accept. Participation is voluntary for market participants.
Large industrial users are expected to be among the first participants. Significant consumption can be adjusted through changes in production schedules, load management or temporary reductions in non-essential processes. This approach is intended to provide flexibility when system conditions require it.
Potential expansion to household flexibility
The mechanism could later extend to households through suppliers and aggregators. Aggregators would combine thousands of small flexible loads into volumes large enough to participate in the balancing market. Examples mentioned for household flexibility include delaying water heating, air-conditioning demand or appliance use during evening peaks.
Link with Romania’s renewables build-out
The reform is described as particularly relevant as Romania adds large volumes of wind, solar and battery capacity. With more variable renewable generation, demand-side flexibility can help manage periods when renewable output changes rapidly. This is expected to reduce reliance on expensive balancing generation and imports during those times.
