Energy • Regulation • Romania
Prosumer Law blocked by the Constitutional Court (October 2025): a delayed change, not a cancelled one
On 31 October 2025, the President of Romania referred to the Constitutional Court the law that would have introduced cross-site compensation for the same prosumer across multiple consumption points. For a power market that had just passed 300,000 active points and was preparing for energy communities, this is an unwelcome pause – but a necessary one. In this MHG Consulting analysis, we explain why the law was expected, why it was challenged, and why portfolio compensation will still reach the market in 2026–2027.
1. Why the 2025 law mattered
2025 was the first year Romania could genuinely say the prosumer is no longer an experiment. With over 300,000 active points of delivery, successive residential programs, and municipalities increasingly treating PV as local infrastructure, prosumers became a visible economic actor. In this context, keeping a “per-address only” compensation model had become a brake.
The law blocked at the Constitutional Court aimed to resolve that tension: if a person or a public institution owns several points of consumption and one of them produces more than needed, why shouldn’t they be able to use their own energy for the other points? The intuitive answer is “yes.” The technical answer depends on grids, tax rules, and how ANRE manages imbalances.
The law mattered not only for households, but also for SMEs with multiple locations, local authorities, small PV/BESS developers, and suppliers preparing multi-site products. It was the bridge from a “passive prosumer” to the “active, portfolio-managed prosumer.”
2. What it introduced – multi-site compensation
The core innovation was clear: energy produced at one site would no longer be trapped at that site. It would become an energy credit that could be used at other sites owned by the same holder (national ID or company VAT). In addition:
- it allowed benefit transfers between first-degree relatives – practical for families with PV at parents’ homes and consumption in the city;
- expanded the ceiling for non-residential prosumers, giving small economic actors more flexibility;
- created a legal basis for local energy communities, aligning Romania with RED II and RED III.
Operationally, the supplier would have held a single ledger per holder and compensated on a portfolio basis. This requires IT investments, distributor interconnection, and likely daily reporting – feasible, but not overnight.
Precisely because it’s generous and digital, the mechanism was warmly received: installers saw a sales accelerator, suppliers saw product innovation, and municipalities saw a way to avoid wasting energy produced by schools and administrative buildings.
3. Why it reached the Constitutional Court
A useful law isn’t automatically a well-drafted one. The President’s referral of 31 October 2025 pointed to four real issues:
- Procedure: Parliament exceeded the scope of the re-examination request and added new provisions.
- Technical: the law wasn’t aligned with ANRE’s secondary legislation, especially regarding different grids and technical losses/costs.
- Tax: it wasn’t clear whether “moving” energy between sites is a taxable event; double taxation risk was real.
- Budget: no impact assessment regarding lower VAT/excise revenue from self-covered consumption.
The mature conclusion: the idea isn’t rejected, but it must be built with ANRE, the Ministry of Energy, the Ministry of Finance, and distribution operators at the table. Otherwise, the right would exist on paper while implementation would still be blocked by orders and procedures.
4. What prosumers can (and can’t) do until the decision
Until the Court’s decision is published and ANRE issues orders, the current regime remains: 1:1 compensation per site, with a 24-month validity for surplus. This means:
- if you produce at a house and consume at an apartment, you cannot transfer;
- if you overproduce in a year, surplus is erased after 24 months;
- suppliers cannot launch “multi-site” products without legal basis and ANRE orders;
- local authorities planning energy communities must wait.
Hence the shift towards smart self-consumption and storage: if you can’t move your energy, use it better where it’s produced (heat pumps, EV charging, 5–10 kWh batteries). It’s the pragmatic solution until the full framework arrives.
5. Impact on suppliers, OPCOM and investments
Though aimed at households, the law would have reshaped the supplier model. Portfolio compensation entails:
- single accounts per ID/VAT;
- consolidated invoices with cross-site offsets;
- real IT integration with DSOs and ANRE;
- likely market consolidation around suppliers with IT capacity.
The temporary block gives suppliers time to prepare systems – but doesn’t change direction. Under RED III, 2026–2027 will still bring prosumer portfolios.
On OPCOM, postponing the mechanism keeps today’s volatility: midday surpluses flowing into day-ahead markets, evening gaps. With multi-site compensation, part of those surpluses would be “consumed” internally, flattening the load curve.
On investments, delays show up in small/medium PV projects targeting multi-location clients (retail chains, depots + stores, hotels + restaurants). Without portfolio compensation, these rely on corporate PPAs or local self-consumption.
6. Realistic scenarios after the Court’s decision (2026)
Whatever the Court decides, market instruments will keep evolving. In 2026 we’ll likely see:
- an ANRE order on prosumer aggregation – a less politicized technical solution where multiple prosumers are managed as a portfolio;
- pilot programs for energy communities at local level;
- a more disciplined version of the law, with explicit references to the Fiscal Code and potential geographic limits.
So, the current block doesn’t mean the mechanism disappears; it will arrive safer legally and more workable technically.
7. Lessons for authorities and investors
The European lesson is simple: synchronisation before speed. Primary legislation (Parliament) must move in step with secondary rules (ANRE) and real infrastructure (DSOs, Transelectrica). If one runs ahead, the others pull it back. That’s precisely what happened.
For investors, adopt intelligent prudence: build PV and PV+BESS projects with alternative scenarios (PPAs, aggregation, storage), not only “I’ll offset everywhere.” For authorities: any law touching the grid and the budget needs ANRE and Finance at the table before, not after, the vote.
8. EU pressure and obligations by 2026
Directive (EU) 2023/1791 – RED III requires Member States by June 2026 to offer a framework for active citizen and energy community participation. That includes network and market access plus compensation/aggregation mechanisms. Even if the 2025 Romanian law doesn’t pass in this form, an equivalent mechanism will be needed.
Romania’s NECP and the updated energy strategy already rely on prosumer contributions to renewables targets. You can’t ask households to invest in PV and deny them optimisation tools. Pressure will come from both the European Commission and ESG investors.
9. Image brief (for later generation)
IMAGE 1 (header): minimalist aerial over a European neighborhood with PV + a civic building; cool ambience; MHG palette; small caption: “Prosumer Law at the Constitutional Court”.
IMAGE 2 (diagram): three locations (House – Apartment – Office site) connected to a “Single Energy Account”; flat style, thin icons; white background; accents #003399, #FFCC00.
IMAGE 3 (institutional): Constitutional Court / council chamber; cool gray-blue tones; #CC0000 accent (constitutional control).
10. Resources & relevant links
MHG Consulting articles
- Romania – BESS: legal framework, market & financing (2025)
- Romania – grid connection capacity allocation 2026 (Transelectrica & ANRE)
- Contracts for Difference (CfD) in renewables – what investors should know
External sources (official / specialist)
Need a project-specific interpretation (PV, BESS, energy community)?
MHG Consulting can calibrate the legal and investment impact of the Constitutional Court block on your projects, including options via aggregators or internal PPAs.
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