Building Smarter Grids: Solutions for the Renewable Transition in the Black Sea Region

The Black Sea region is witnessing an unprecedented surge in renewable energy projects. From Romania’s robust push for battery energy storage systems (BESS) to Moldova’s integration challenges, key stakeholders are converging to address grid transformation. The session at Energy Week Black Sea 2025 highlighted innovative solutions, regulatory shifts, and investment opportunities essential for advancing renewable integration and grid stability.

Capacity Crunch and Proactive Solutions

Speakers pointed to the scarcity of grid capacity as a pivotal challenge. Favieli Stelian of Nofar Energy reflected on the competitive rush for grid access, emphasising the need for timely investments. In a move to mitigate these constraints, Romania has introduced a tender-based allocation system for projects above five megawatts, offering transparency on reinforcement costs and timelines.

Daniel Vlasceanu, an energy law expert, emphasised the importance of providing investors with certainty regarding grid reinforcements. “An investment decision cannot be made on the hope that reinforcement costs will decrease later,” he argued. Vlasceanu advocated for regulatory reforms to ensure predictable cost structures before construction, thereby fostering confidence in project viability.

Batteries as the Backbone of Renewables

The consensus among panellists underscored the indispensable role of BESS in renewable integration. Romania leads with regulatory incentives and technical standards aimed at accelerating battery adoption. Private and public initiatives are working to mitigate the impact of negative pricing while enhancing profitability through storage solutions.

In Bulgaria, government-backed tenders for battery systems are gaining traction. However, Veselin Todorov stressed that grid interconnectivity remains a critical gap. “Without seamless regional connections, we risk energy oversupply and inefficient exports,” he noted.

Cross-Border Interconnections: The Key to Stability

Regional interconnectivity dominated discussions, with Georgia and Moldova unveiling ambitious plans to link their grids with neighbouring countries. Georgia’s €2.3 billion grid investment strategy, excluding its €3.5 billion Black Sea submarine cable project, aims to enhance energy exchange capabilities. Zviad Gachechiladze of Georgian State Electrosystem (GSE) stressed that these projects promise not only to alleviate local grid pressures but also to unlock access to high-demand markets in Central and Western Europe.

Moldova is similarly pursuing strategic interconnections, supported by €1.9 billion in EU funding. Ancillary service auctions, as highlighted by Sergiu Aparatu of Moldelectrica, will play a pivotal role in integrating BESS and stabilising Moldova’s grid.

Balancing Costs and Investments

The financial burden of grid upgrades sparked debate among panellists. While end users often bear the brunt through tariffs, Favieli Stelian highlighted the need for balanced collaboration between state bodies and private investors. “We cannot achieve our 2030 renewable targets without aligning incentives and sharing responsibilities,” he argued.

Daniel Vlasceanu further underscored the need for systemic changes in cost allocation. He suggested moving away from a first-come, first-served model to one prioritising projects with realistic development timelines and solid financial backing. “Filtering out speculative applications ensures grid capacity is reserved for viable projects, driving overall system efficiency,” he added.

Supply Chain and Workforce Challenges

Global supply chain bottlenecks—particularly in transformer production—remain a significant hurdle for grid reinforcement projects. Additionally, the lack of skilled personnel to manage international procurement processes further delays infrastructure upgrades. Speakers advocated for streamlined funding mechanisms and workforce development as immediate priorities.