Powering Romania’s Energy Transition | Editorial Series by The Diplomat-Bucharest 

As Romania advances its energy transition agenda, the country stands at a defining moment for its long-term competitiveness and economic resilience. While Romania remains an attractive market for investors, the traditional advantages of low operating costs have gradually narrowed. Today, sustainable competitiveness is increasingly shaped by the quality of infrastructure, regulatory stability, and the ability to attract long-term capital — challenges that extend beyond Romania and reflect a broader regional tendency toward short-term decision-making that often delays strategic investments. At the same time, high labor costs driven by taxation and social contributions continue to weigh on business attractiveness compared with other markets.

Yet Romania also benefits from significant structural strengths: a relatively high degree of energy independence, a sizeable domestic market, and substantial natural resources. The country’s future potential will largely depend on its capacity to absorb European funds efficiently and maintain momentum in modernizing critical infrastructure.

In this context, The Diplomat-Bucharest talked with Ondrej Safar, CEO of Distributie Oltenia and Evryo Power, about Romania’s investment climate, the modernization of the energy sector, and the opportunities and challenges shaping the next phase of the country’s energy transformation.

How do you evaluate Romania in terms of cost competitiveness vs productivity?

Romania remains an attractive market, but its traditional cost advantages have diminished over time. Today, competitiveness depends more on infrastructure, stability, and the ability to attract long-term capital. This is rather a regional issue caused by a short- term view which never stimulates investments. Another challenging factor is the high level of labor force costs, directly generated by the legal taxes and contributions. And the difference is notable especially compared to other countries.

How could public authorities better support investors?

The key factor is a stable and predictable legislative framework that allows long-term investment planning. At the same time, constant dialogue between authorities and the business community is essential to ensure that regulation remains coherent and adaptable.

How confident are you about Romania’s energy security for 2026–2030?

Romania has important strengths — a relatively strong level of energy independence, a large market, and available resources. However, this positive outlook depends on the absorption of EU funds and continued investment in infrastructure.

Where are the biggest growth opportunities?

The main opportunities lie in grid infrastructure, renewables, and their integration with storage. Without network development, none of these directions can be scaled effectively. Assuming that investments into the infrastructure are stimulated, Romania has a great potential in developing the AI related ecosystem due to the country’s already confirmed legacy in IT.

What are your company’s investment priorities?

The main priority is the modernization and expansion of the grid, including digitalization and the rollout of smart metering. The company has already implemented and continues to develop major projects in this area, including investments in intelligent systems and critical infrastructure.

What were the most important projects in 2024–2026?

Among the most relevant initiatives are digitalization projects, the integration of prosumers, and the testing of new solutions through pilot programs such as Orizont 30. At the same time, the company is working to adapt the grid to new realities, including flexibility solutions and new technologies.