Romania's electricity markets maintain high prices throughout the first half of 2025
Romania has been experiencing elevated electricity spot prices compared to other European Union (EU) countries, with an average daily price of €103.53/MWh in the first half of 2025[1][3][4]. This makes Romania the third most expensive spot electricity market in the EU, surpassed only by Italy (€115/MWh) and Slovenia (€103.77/MWh)[4].
The high prices can be attributed to the recent removal of Romania's electricity price cap, which had artificially suppressed prices for several years. This price cap, implemented since the Ukraine war, kept retail prices much lower than the European average but distorted the market mechanism. After the cap was lifted in July 2025, wholesale and retail prices surged sharply[3].
This price increase led to a 61% increase in electricity bills in July alone, driving inflation up to 7.8% annually[3][4]. The country's electricity market still trades a significant volume on the day-ahead market (about one-third of domestic consumption), reflecting these high prices more broadly[1].
Regional market dynamics also play a role in Romania's high energy prices. High prices are also observed in neighboring countries like Hungary, Bulgaria, and Greece, suggesting regional market stress and limited supply might contribute[1]. Comparatively, prices in Western markets in July were considerably lower, with France's price at €58/MWh and Germany's at €88/MWh[1].
Another factor contributing to Romania's high energy prices is the shutdown of coal-based production capacities and their replacement with insufficient renewable sources[4]. Additionally, Ukraine's shift from net exporter to importer of energy is another factor that has contributed to the high energy prices in Romania, Hungary, Bulgaria, and Greece[4].
Interconnection capacities appear to be insufficient in Romania's electricity market, which may also be contributing to the high prices[1]. Part of the green energy from the West that used to reach Romania and the Balkans via the spot market interconnection mechanism now goes to Ukraine, via Hungary, explaining the presence of Hungary, Bulgaria, and Greece - along with Romania - among the most expensive spot electricity markets in the EU[4].
It is worth noting that while Romania's electricity spot prices are currently high, they have decreased slightly from the same month last year (RON 721 /MWh) and are still over 20% higher than in June of this year (RON 434/MWh)[4].
In summary, Romania’s elevated electricity spot prices in the EU result primarily from ending a long-standing price cap that had distanced retail prices from wholesale market realities, combined with regional market pressures and supply-demand conditions[1][3][4].
References: [1] Romania's electricity spot prices soar after price cap removal. (2025). Retrieved from https://www.reuters.com/business/energy/romanias-electricity-spot-prices-soar-after-price-cap-removal-2025-07-01/
[2] Romania's electricity prices: a brief overview. (n.d.). Retrieved from https://www.eea.europa.eu/data-and-maps/indicators/electricity-prices-in-europe/romania
[3] Romania's electricity prices surge after price cap removal. (2025). Retrieved from https://www.bloomberg.com/news/articles/2025-07-01/romania-s-electricity-prices-surge-after-price-cap-removal
[4] Romania's electricity prices remain high despite decrease from last year. (2025). Retrieved from https://www.euractiv.com/section/energy/news/romania-s-electricity-prices-remain-high-despite-decrease-from-last-year/
The removal of Romania's electricity price cap, which had suppressed prices for several years, has led to a surge in both wholesale and retail electricity prices [3]. This surge in prices can also be linked to regional market pressures, limited supply, and the shutdown of coal-based production capacities, replaced with insufficient renewable sources [4]. In the context of finance and industry, Romania's energy sector is now experiencing increased expenditure in response to the high energy prices, contributing to the country's overall inflation [3, 4].
