resources · glossary

The terms - in plain language.

Energy communities use a lot of jargon - REC, CEC, kWp, BESS, EMS, allocation coefficient. Here you will find each term explained in 2-3 sentences, without technical slides. If something is missing, write to us at [email protected].

EU · RED III directive · legal framework

REC - Renewable Energy Community (comunitate de energie din surse regenerabile)

A legal entity (association, cooperative, SRL limited company, NGO) through which members located close to each other produce, consume, store and share energy from renewable sources (PV, wind, biomass). Members can be citizens, local authorities and SMEs.

The definition comes from Directive (EU) 2018/2001 (RED II), updated by RED III (2023/2413). In Romania, the framework was introduced by Government Emergency Ordinance (OUG) 163/2022 and supplemented by OUG 59/2025, which transposes RED III and gives communities a legal status of their own.

EU · IEM directive · legal framework

CEC - Citizen Energy Community (comunitate cetățenească de energie)

A broader form than the REC: it is not tied to geographic proximity and it is technology-neutral (not just renewables, but also gas, hydrogen and other sources). Members are citizens, local authorities and SMEs.

The definition comes from Directive (EU) 2019/944 (IEM - Internal Electricity Market). For a Romanian municipality, the most common model today is the REC; the CEC applies in more complex scenarios spanning several counties.

RO · legal framework

Prosumer (prosumator)

A final consumer who also produces electricity for their own use and can feed the surplus into the grid. The term is established in Romanian law through the Energy Law (Law 123/2012, as amended).

Important: an individual prosumer is not the same thing as a member of an energy community. They are separate legal regimes. Joining a community may have implications for your prosumer status - check with a lawyer.

technical

kWp - kilowatt peak (installed capacity)

The theoretical maximum capacity of a solar installation under ideal irradiation. It is not what the installation produces; it is only the peak limit. In Romania, a 100 kWp installation produces ~110,000-130,000 kWh/year (depending on orientation, shading and latitude).

technical · billing

kWh - kilowatt-hour (energy produced/consumed)

The unit of measurement for the energy actually produced or consumed over a period of time. The unit on your bill. Under normal conditions in Romania, a 1 kWp panel produces ~1,100-1,300 kWh a year.

technical · storage

BESS - Battery Energy Storage System

A battery-based energy storage system. Used to balance production (daytime, the solar peak) with consumption (evening, when people are at home). Typical size for a community: 50-200 kWh. The cost in 2026 is ~250-400 EUR/kWh (LFP), and falling fast.

technical · software · core of operations

EMS - Energy Management System

The community's 'brain'. The software that decides when to consume from the PV, when from the battery, when from the grid and when to sell the surplus. It applies the allocation coefficient and generates the data for settlement and billing.

A good EMS makes the difference between a community running at 30% self-consumption and one that reaches 70%+.

legal + technical · settlement

Allocation coefficient (coeficient de alocare, also called 'allocation key', cheia de alocare)

The rule by which the energy produced is shared among the community's members. It can be proportional (each according to their share of the investment), equal (everyone the same), prioritised (public buildings first) or dynamic (based on actual consumption).

The allocation coefficient is set in the community's statutes and can be audited. It is hard to change - think it through from the start.

billing · operations

Settlement (decontare)

The monthly process that works out how much the community produced, how much each member consumed, how much surplus was sold and who pays or receives how much. A kind of 'energy balance sheet'. The EMS calculates it automatically; the lawyer + the accountant validate it.

technical · metering

Smart meter (contor inteligent)

A bidirectional meter that measures both the energy drawn from the grid and the energy fed into it, at 15-minute or hourly intervals. Without a smart meter at every point (home + public building), the community cannot settle correctly. A mandatory requirement of ANRE (Romania's energy regulator).

RO · DSO · grid connection

ATR - Aviz Tehnic de Racordare (grid connection permit)

The document issued by the DSO (the local electricity distributor) confirming that the grid can take the energy fed in by the community. You apply for it before installation starts. Without a favourable ATR, the installation is not connected.

In Romania, it usually takes 30-90 days to obtain, depending on the DSO and the complexity of the project.

infrastructure

DSO - Distribution System Operator (distribuitor)

The company that operates the local electricity grid. In Romania the main ones are: Distribuție Energie Electrică România (DEER, formerly Electrica), E-Distribuție (Banat / Muntenia / Dobrogea), Delgaz Grid (E.ON Moldova) and Distribuție Energie Oltenia (formerly CEZ).

Your DSO is the one that issues your ATR and meters your energy. For a community, it is a mandatory technical partner.

RO · regulator

ANRE - Autoritatea Națională de Reglementare în domeniul Energiei (Romania's National Energy Regulatory Authority)

Romania's energy market regulator. It sets grid tariffs and the orders that apply to prosumers and communities, and since June 2026 it has run the national register of energy communities. All of a community's monthly and annual reports go here.

Official website: anre.ro.

RO · funding

MFE - Ministerul Investițiilor și Proiectelor Europene (Ministry of Investment and European Projects)

The ministry that runs the calls under PTJ, PNRR and most EU instruments managed at national level. This is where you find the Applicant's Guide (Ghidul Solicitantului) for each call.

Official website: mfe.gov.ro.

RO · funding (alternative name)

MIPE - Ministerul Investițiilor și Proiectelor Europene (Ministry of Investment and European Projects)

An alternative short form of MFE. Same institution; you will see both forms in documents. In practice, in 2026 the official name is MFE; MIPE still appears in some older texts.

EU · funding

JTF - Just Transition Fund (Fondul pentru Tranziție Justă)

The EU instrument that supports regions affected by the transition from coal to clean energy. In Romania it covers counties such as Gorj, Hunedoara, Dolj, Prahova, Mureș and Galați. Implemented at national level through the PTJ programme (see below).

RO · funding · priority 1

PTJ - Programul Tranziție Justă (Just Transition Programme)

The Romanian national programme that implements the JTF. For certain calls in Just Transition regions, public co-financing reaches up to ~98% of the investment - the most generous scheme for new communities in the eligible counties.

The specific calls, amounts and deadlines are published by MFE. Check the Applicant's Guide for the current call directly.

EU · funding · priority 2

Modernisation Fund (Fondul de Modernizare)

An EU fund for modernising the energy sectors of eligible member states (Romania included). Financed from the revenue of selling ETS allowances. Managed by the European Commission (DG CLIMA) through the EIB; the national allocation goes through the Ministry of Energy.

Good for large projects (>500 kWp). Co-financing varies by scheme.

EU · funding · CINEA

LIFE Programme - Clean Energy Transition

EU programme for the clean energy transition. It funds capacity-building, demonstration and replication projects. Typical amounts: EUR 1-3 million. Annual calls, managed by CINEA.

Official website: cinea.ec.europa.eu/programmes/life_en.

EU · directive

RED III - Directive (EU) 2023/2413

The third revision of the Renewable Energy Directive. It raises the EU's renewables target to 42.5% by 2030, simplifies permitting and gives even stronger recognition to energy communities. It amends RED II (2018/2001).

Transposed into Romanian law by OUG 59/2025, from November 2025.

EU · directive

IEM - Internal Electricity Market (Directive 2019/944)

The European framework for the internal electricity market. It introduces the concept of the Citizen Energy Community (CEC) and regulates the role of DSOs and the rights of active consumers (prosumers).

RO · funding

PNRR - Planul Național de Redresare și Reziliență (National Recovery and Resilience Plan)

The post-pandemic package of European funds allocated to Romania (~EUR 30 billion in total). Component C6 - Energy has a significant allocation for energy projects. Note: the absorption deadline is August 2026 - many schemes are closing.

technical · market

GO - Guarantee of Origin (garanție de origine)

A certificate proving that a quantity of energy (1 MWh) was produced from renewable sources. It can be sold separately from the physical energy, as a financial product. An energy community can generate GOs for its own production and sell them on the market as extra income.

economic · KPI

Self-consumption rate (rata de autoconsum)

The share of the energy produced that is consumed directly by community members, without going through the grid. A well-sized community + a good EMS + storage reaches 60-80%. Without storage, typically 30-50%.

The higher the self-consumption, the bigger the savings on the bill and the lower the dependence on grid tariffs.

EU · emerging concept

Energy sharing (partajare de energie)

The concept that lets members of a community share the energy produced even if they are not connected to the same feeder or building. Essential for distributed communities (e.g. non-adjacent apartment blocks in the same neighbourhood).

The Citizens Energy Package, published by the European Commission on 10 March 2026, strengthens energy sharing rights through Recommendation C/2026/2850. It is a non-legislative package.

Missing a term? Write to us at [email protected] - we will add it in the next revision. The glossary is updated monthly.

The Smart City Romania network, run by ARSC

Everything you need to know about Romania's fastest-growing industry

arsc.ro · [email protected]