Romania’s Decision Makers | Editorial Series by The Diplomat-Bucharest
As Romania’s energy sector undergoes rapid and profound transformation, significant European financial resources are becoming available to support major investment projects with medium- and long-term impact. This new stage creates both opportunities and challenges for the companies responsible for modernizing the country’s critical infrastructure.
For Distribuție Energie Electrică România (DEER), this moment marks a period of accelerated development. The company is actively modernizing its distribution network, with investment plans for 2025–2029 exceeding RON 5.7 billion, of which RON 3.7 billion will be financed from its own sources.
Romania’s economy still has significant potential to converge toward the European average, while investments in infrastructure, digitalization, and energy are becoming key drivers of sustainable growth. In the power sector, a clear paradigm shift is already visible: consumers are increasingly becoming prosumers, electricity grids are evolving into smart networks, and sustainability is emerging as a central competitiveness criterion.
In this context, The Diplomat-Bucharest spoke with Mihaela Suciu, General Manager of DEER, about the company’s ambitious investment plans, the modernization of Romania’s electricity distribution infrastructure, and the role that energy networks will play in supporting economic development and strengthening regional energy stability in the years ahead.
From your perspective, how attractive is Romania today compared to other CEE markets when you allocate capital and investments?
From my perspective, as CEO of Romania’s largest national electricity distribution operator (DEER), Romania is currently at a strategic inflection point favourable for investment in energy infrastructure, giving it a solid and competitive investment profile compared to other Central and Eastern European markets. The Romanian energy sector is undergoing rapid and profound transformation, with access to concrete European financial resources available for major investment projects with medium- and long-term impact.
This stage represents both a challenge and an opportunity for DEER. Our grid is being modernized at an accelerated pace, and the development plans approved for 2025–2029 foresee investments of over RON 5.7 billion, of which RON 3.7 billion come from our own sources. European funds, including those accessed through the Modernisation Fund and the Sustainable Development Programme — totalling over RON 2.05 billion for critical infrastructure projects — complement these resources and enable us to implement projects with real impact on grid sustainability and efficiency.
A factor that truly differentiates Romania from other countries in the region is the growth of distributed generation. The number of prosumers has increased spectacularly — from approximately 15,000 at the end of 2022 to nearly 120,000 by the end of 2025 — and continues to grow by about 30,000 per year. This remarkable evolution requires the integration of bidirectional energy flows, significant investments in automation, digitalization, smart metering, and the modernization of substations and transformer stations. We therefore have a real opportunity to build a grid ready for the future. The DEER team, with its experience and dedication, transforms this vision into concrete, modern, and intelligent projects that address current energy challenges while anticipating the needs of tomorrow’s users.
Of course, market attractiveness is not defined solely by growth potential but also by the stability and predictability of the regulatory framework. In a regulated sector like electricity distribution, it is essential that indicators reflecting the cost of equity and debt capital support the economic efficiency of investments. Continuous dialogue between operators, authorities, and policymakers remains a key condition for maintaining investment attractiveness.
Thus, Romania is a market with growth potential undergoing accelerated transformation. For DEER, this stage translates into the strategic responsibility of transforming the grid into an intelligent, resilient infrastructure capable of supporting the energy transition and the evolution toward energy as a digital service.
How confident are you about Romania’s economic outlook for 2026–2030?
I would say I am cautiously optimistic about 2026–2030. Romania is undergoing deep transformation, and such moments bring both pressures and real growth opportunities.
The Romanian economy still has significant potential to converge toward the European average, and investments in infrastructure, digitalization, and energy will play a crucial role in supporting this evolution. In the energy sector, we already see a paradigm shift: the consumer is becoming a prosumer, grids are becoming smart, and sustainability has become a central competitiveness criterion.
Romania’s progress in the coming years will depend on maintaining investment momentum, efficiently leveraging European funds, and ensuring consistency in public policies. At the same time, I am confident because I see a maturing business environment and improved collaboration between the public and private sectors. There is increasing awareness that energy infrastructure is the foundation for economic development and industrial competitiveness.
For me, 2026–2030 represents a period of consolidation: if we maintain investment discipline, accelerate digitalization, and continue investing in people, Romania can become not only an attractive market but also a regional hub of energy stability and innovation.
Where do you see the biggest growth opportunities during this period?
Personally, I see the biggest opportunities in increasing grid capacity to support accelerated electrification and distributed generation.
Operational priorities: One priority is increasing grid resilience. In recent years, extreme weather events have become more frequent, and investments in isolated lines, underground cables, and automation significantly reduce average outage durations. In areas with telecontrol and automatic reconnection solutions, restoration time has been reduced by over 25%, ensuring continuity for users and stability for the economy.
Connection capacity: Demand for new consumption points, photovoltaic parks, and industrial projects is steadily increasing. Expanding substations and increasing the capacity to accept renewable energy enables local and regional economic development.
Digitalization: Internal process digitalization brings operational efficiency gains. Predictive maintenance and data-driven intervention planning reduce costs and extend asset lifetimes.
Electrification of transport: Developing infrastructure for electric mobility represents another growth stage. Distribution grids become critical infrastructure, and timely adaptation is a competitive advantage.
What investment priorities will define your company’s roadmap in Romania over the next 3–5 years?
From 2025–2029, our investment priorities focus on accelerated grid modernization and digitalization, increasing infrastructure resilience, and integrating renewable energy efficiently. DEER’s efforts aim to transform grids into modern, intelligent, and resilient infrastructure to meet increasingly complex user demands and energy transition challenges.
Major projects include:
- New 110/20 kV substations in Sibiu and Cluj-Napoca
- Modernization of 110 kV grids and substations in Buzău, Galați, Târgoviște, Oradea, and Sibiu
- Replacement of over 600 transformers in areas with high prosumer density to allow safe and efficient bidirectional energy flow
We will implement 1.1 million smart meters and develop a Virtual Power Plant platform for real-time monitoring of consumption and production, optimizing grid operations.
Automation of medium- and high-voltage grids aims to reduce outage restoration time and increase renewable energy absorption. By 2030, we aim for full automation of substations, 15% automation in transformer stations, and digitalization of 80% of operational processes, including predictive maintenance and advanced cybersecurity solutions.
All investments are funded from own sources and European funds — over RON 2 billion from the Modernisation Fund already attracted for critical infrastructure projects, with total cumulative investment of around RON 3.2 billion including co-financing.
Human capital development and cybersecurity remain strategic priorities. We invest in employee training, upskilling programs, and protection of digital infrastructure, considering the growing complexity of grids and integration of smart technologies.
What should Romania’s economic strategy prioritize to stay competitive in the next decade?
I believe Romania’s economic strategy should center on smart investments, critical infrastructure, digitalization, and human capital development. Without these components, long-term competitiveness remains vulnerable. Our experience shows that modernizing energy infrastructure has multiplier effects across the economy. In recent years, DEER has accelerated investments in grid modernization and digitalization, increasing operational efficiency, reducing losses, and meeting market demands.
A solid economic strategy should consistently support such infrastructure investments through legislative stability, easy access to European funds, and mechanisms that stimulate private capital.
The energy transition and renewable integration are critical for competitiveness and must be treated as strategic opportunities. The rapid growth in prosumers and renewable capacities requires smart, resilient grids capable of handling bidirectional flows and extreme weather. Investments in digitalization, automation, and cybersecurity are no longer optional but essential for system safety and stability.
Finally, human capital development should be a central pillar. Investment in people is, in fact, investment in economic sustainability. Over the next decade, Romania needs a coherent strategy that aligns modern infrastructure, advanced digitalization, renewable energy, and vocational training within a predictable, innovation-oriented framework to build a resilient, competitive economy ready for future challenges.
Which three reforms would have the greatest positive impact on business confidence?
From my perspective, three reforms would have an immediate and major impact on business confidence:
- Human capital development: Romania needs an education and vocational system better aligned with market demands. The shortage of qualified personnel affects strategic industries. Expanding dual education programs and partnerships between companies and schools would ensure the necessary skills for a modern, digitalized economy.
- Infrastructure and digitalization acceleration: Modern critical infrastructure, especially in energy, transport, and communications, ensures investment predictability and safety. Digitalization, automation, and smart technology integration increase efficiency, reduce risks, and allow businesses to respond quickly to market changes.
- Legislative and fiscal stability: Businesses need clear, consistent rules applied predictably for long-term investment planning. Without a stable framework, appetite for investment and innovation decreases significantly.
Addressing these three areas strategically and continuously — skills-focused education, modern infrastructure, and regulatory stability — would strengthen investor confidence and create a competitive, resilient economic environment.
If you were advising policymakers tomorrow, what one message would you deliver?
If I had the opportunity to advise policymakers, my main message would focus on strategic collaboration, responsibility, and long-term vision. Romania is at a critical point in its energy and digital transition, and the success of the business environment — particularly major investors and strategic operators like DEER — depends directly on legislative predictability and stability, as well as tangible public authority support.
I would emphasize that executing major investments, such as DEER’s 2025–2029 plans, depends on authorities’ ability to support operational processes and facilitate innovative technology implementation.
My message would be that Romania must recognize that investments in strategic infrastructure, digitalization, and automation are not costs but the foundation of a sustainable, resilient, and competitive economy. Transparent public-private collaboration, along with continuous and adaptive dialogue, is key to ensuring energy stability, integrating renewable sources efficiently, and improving service quality for consumers.
Special attention must also be given to human capital: the shortage of qualified personnel in the energy sector — a major national challenge — can be addressed through real support for dual education and continuous vocational training.
Ultimately, Romania’s economic and strategic success in the next decade will depend not only on resources but on how governance supports predictability, accelerates digitalization, sustains strategic investments, and develops human capital. With a clear vision and real partnership between authorities and the private sector, Romania can transform current challenges into long-term opportunities for growth, innovation, and competitiveness.