Romania is preparing for a major upgrade of its electricity interconnections under a large-scale EU-backed investment program aimed at integrating its power system more closely with western Europe. By 2035, up to €30 billion is expected to be allocated to electricity network investments linking Romania, Hungary and Austria through a coordinated regional framework. Energy Minister Bogdan Ivan confirmed that preparations are underway for a dedicated financing mechanism focused specifically on electricity grids.
The planned funding will support strategic cross-border infrastructure projects designed to strengthen interconnections and enhance the resilience and flexibility of Romania’s electricity system. Once implemented, these upgrades are expected to expand Romania’s interconnection capacity from around 4,000 MW to approximately 7,200 MW, improving market integration, easing supply constraints and placing downward pressure on electricity prices over time.
The same financing envelope also includes the Green Corridor, a trans-regional energy route intended to deliver baseload electricity from Azerbaijan into Europe via Romania. With a planned capacity of 4,800 MW, the project would position Romania as a key entry point for Caspian-region electricity flows into the European Union.
Romanian officials note that several strategic energy routes converge on the country, including electricity links from the Black Sea region, the Trans-Balkan gas corridor and the planned Austria–Hungary–Romania interconnector. Together, these routes are envisioned as components of a future European “energy highway”, with authorities emphasizing the need to convert Romania’s geographic advantage into tangible benefits for households and industry.
Following discussions at the EU level, Romania is expected to work jointly with Hungary and Austria on a memorandum to formalize access to the proposed financing package. The objective is to accelerate project implementation and ensure coordinated cross-border development.
Romania aims to achieve functional integration with western European electricity markets by around 2028. Access to markets such as France, where large volumes of nuclear generation help keep wholesale prices low, is seen as a potential tool to ease domestic price pressures.
At present, Romania ranks among the countries with the highest household electricity prices worldwide. According to international comparisons, this is driven by a combination of domestic constraints, including limited generation capacity and reliance on costly imports, alongside regional challenges such as rising demand in southeastern Europe and insufficient east–west interconnection capacity.
