G Energy Solutions Warns Grid Constraints Could Limit Benefits of Battery Expansion in Romania and Bulgaria

Rapid investment in battery energy storage systems in Romania and Bulgaria is creating new flexibility opportunities, but electricity network constraints and forecasting challenges remain significant obstacles to efficient market operation.

Ionuț Vasilică, CEO and Co-Founder of Romanian electricity trading company G Energy Solutions, discussed the developments during Energy Week Western Balkans 2026.

The company operates in Romania, Bulgaria and the Republic of Moldova, giving it exposure to several interconnected electricity markets.

Vasilică was asked about the rapid expansion of battery storage investment in Romania and Bulgaria over the previous two years.

Renewable electricity forecasting and limited cross-border transmission capacity

He identified renewable electricity forecasting and limited cross-border transmission capacity among the principal challenges facing both markets.

As renewable generation increases, electricity suppliers and traders must manage greater uncertainty over the volume and timing of electricity production.

Forecasting errors can result in imbalances between scheduled and actual electricity delivery, creating additional costs and operational pressure.

Battery storage can help address some of these challenges by absorbing excess generation and responding rapidly to changing electricity system conditions.

However, Vasilică stressed that additional battery capacity does not remove the need for stronger transmission infrastructure.

Cross-border interconnection capacity remains an important constraint on the ability of electricity market participants to trade efficiently between neighbouring countries.

The issue becomes particularly significant when electricity production exceeds domestic demand or when neighbouring markets experience different price conditions.

The commercial benefits of integrated electricity markets

Vasilică also highlighted the commercial benefits of integrated electricity markets.

Romania’s borders with Hungary and Bulgaria benefit from coupled electricity trading arrangements, under which cross-border capacity is allocated together with electricity transactions.

This reduces the need for traders to secure transmission rights separately and improves the efficiency of cross-border trading.

By contrast, uncoupled borders require separate capacity purchases, exposing traders to additional commercial risks.

For battery operators, the availability of liquid wholesale markets and efficient cross-border trading arrangements can influence the range of potential revenue opportunities.

Storage projects may benefit from electricity price differences, but their ability to capture value depends on market rules, network access and the cost of managing trading positions.

Administrative differences between electricity markets can increase transaction costs

Vasilică also emphasised that administrative differences between electricity markets can increase transaction costs.

Separate licensing, collateral and settlement requirements can make regional trading more complex, even where the physical electricity networks are interconnected.

For Romania and Bulgaria, the growth of battery storage represents an important development in electricity system flexibility.

Nevertheless, Vasilică’s assessment suggests that investment in storage must be accompanied by improved forecasting, stronger grid infrastructure and continued market integration.

Without these developments, additional battery capacity may address some local balancing challenges while leaving broader cross-border trading constraints unresolved.