Romanian President Signs Modified Electricity and Natural Gas Law After Constitutional Court Ruling

Romanian President Nicușor Dan has signed into law the modified Electricity and Natural Gas Law, marking a significant step in regulating the energy sector. The decree was signed on July 23, 2026, following a complex legislative journey that began with the law's initial submission for promulgation on November 25, 2023.

The legislative process encountered a hurdle when, in December 2025, President Dan referred the act to the Constitutional Court. He argued that Parliament had exceeded the limits of re-examination after amendments were introduced during a new legislative cycle. His request for re-examination primarily sought to align the definition of a "prosumer" with existing regulations, particularly concerning producers with capacities equal to or greater than 1 MW, who are subject to licensing as a primary activity.

However, the Constitutional Court of Romania dismissed the objection of unconstitutionality in April 2026, ruling it unfounded. The court's decision, numbered 391/2026, upheld the constitutionality of the new regulations concerning prosumers, allowing the law to proceed.

The updated law introduces several key changes to the legal framework for prosumers. It distinguishes between legal entity and individual prosumers and modifies norms governing their activities. Notably, the limit for installed power capacity eligible for quantitative compensation has been raised to 400 kW. The definition of a prosumer now includes the possibility of energy storage, direct sales to other consumers connected to the production facility, and compensation for excess energy produced against consumption at another site, provided it's with the same supplier and distribution operator.

Furthermore, the law increases the installed power limit for prosumer power plants to 900 kW, beyond which they are liable for grid imbalances. The fiscal code has also been amended, extending the exemption from issuing invoices for installed power from 27 kW to 900 kW per consumption point for prosumers. These changes aim to streamline and encourage energy production and consumption by prosumers within Romania's energy market.

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the act was adopted with exceeding the limits of re-examination by the President of Romania