Demand Side Response (DSR) could provide a credible alternative to keeping coal capacity online while supporting Romania’s longer-term energy transition, with energy storage and increased low carbon capacities.
Romania’s DSR potential is estimated at up to 235 MW of industrial use and 1,800 MW at the household level. Some Romanian officials continue to argue that coal is indispensable on the grounds that it’s the only guarantee of security of supply in both summer and winter. However, a scaled-up DSR mechanism could cover these adequacy gaps and incur savings of around EUR 150m.
Author’s Insights:
“Scaled up, Demand Side Response can overcome winter supply deficits without reliance on coal. The system needs a flexible DSR mechanism in the short- to medium-term alongside long-term energy transition, with energy storage and increased low carbon capacities.
The new flexibility service launched on Sept 1st should be scaled up by publishing auction volumes and clearing prices, introducing a seasonal winter and summer product, and simplifying aggregation for SMEs. Furthermore, the flexibility framework should be expanded to include wholesale markets so consumers and aggregator participation can enable revenue stacking to make participation more attractive without public funds. Demand Side Response should be included in the Resource Adequacy Modelling, drawing on data from August 2026 industrial curtailment, the recent DSR scheme launch and European proxy datasets. Finally, Romania should attract industrial projects in coal regions and link Just Transition support schemes to flexibility. DSR readiness should be made a criterion for industrial projects supported in coal regions, alongside a menu of options that supports workers at different life stages.”
— Nadia Maki
For or further details and media inquiries, please contact Nadia Maki: nadia.maki@epg-thinktank.org