European Commission approves Romania’s battery storage subsidy scheme

The European Commission has given Romania the green light to implement a €150 million ($173 million) subsidy scheme aimed at supporting the installation of at least 2,174 MWh of standalone energy storage facilities.

The Commission found that the Romanian scheme complies with the conditions set out in the Clean Industrial Deal State Aid Framework (CISAF), adopted by the Commission on June 25, 2025. CISAF is a set of rules that allows EU member states to provide faster, more flexible, and targeted financial support for industrial decarbonization and clean technology manufacturing, with the goal of strengthening the EU’s competitive, net-zero industry through 2030.

“This is Romania’s first scheme under the CISAF,” said Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition. “The measure will contribute to a cleaner, more secure and more resilient supply of electricity, in line with the EU’s climate objectives and the Clean Industrial Deal.”

The Commission concluded that the Romanian scheme is “necessary, appropriate and proportionate to accelerate the transition towards a net-zero economy and facilitate the development of certain economic activities,” which are important for the implementation of the Clean Industrial Deal.

The Romanian scheme will award aid through a competitive bidding process, with direct grants distributed before 31 December 2030. Its objective is to facilitate the smooth integration of variable renewable energy sources into the national electricity system by increasing electricity storage capacity. The scheme will be financed by the EU Modernisation Fund.

When unveiling the scheme in January 2025, the Romanian Ministry of Energy said that potential beneficiaries include microenterprises, small and medium-sized enterprises, as well as large companies (including newly established entities) and autonomous authorities. Eligible applicants must be legally established in Romania or another EU member state and registered with Romania’s National Trade Register Office before the date of the first payment of state aid granted under the scheme.