Network modernisation, share of DSO investment needs
70%
Grid modernization is the largest priority for Romania's electricity distribution investments.
Investment needs by category, mil € · p. 85
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Chapter 07
Green Finance
Where energy capital is flowing: record clean-energy investment worldwide, a distribution grid in Romania that needs modernising, and storage costs on a steep downward path to 2050.
- In this chapter
- Key facts80
- Global, Chinese & EU investment81
- Clean energy vs fossil fuels82
- Energy transition investment83
- Energy commodity prices84
- Distribution investment needs85
- Investment needs by operator86
- Storage investment cost outlook87
- Storage operating cost outlook88
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Key facts
Green Finance 2025
Four numbers that summarise where energy investment is heading. Each one links to the page where the evidence sits.
BESS investment cost by 2050, low scenario
$20/kWh
Battery storage costs are projected to decline sharply, improving investment attractiveness.
Storage investment cost, $/kWh · p. 87
Storage O&M cost, 2050
€0.92/kW/yr
Lower storage operating costs will strengthen the business case for large-scale deployment.
Storage O&M cost, €/kW/year · p. 88
Global grids & storage investment, 2025
$479bn
Smart grids and storage investments are key enablers of Romania's energy transition.
Clean energy investment by subsector, $bn · p. 83
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Investment by region
In 2025 there is a sharp global rise in power & efficiency spending, while China focuses on fuels, and the EU on end-use efficiency
Power investment · billion $, 2015–2025
Fig. 7.1Efficiency & end-use investment · billion $, 2015–2025
Fig. 7.2Fuels investment · billion $, 2015–2025
Fig. 7.3- Global power investment reached a record ~$1.5tn in 2025, rising by 3% yoy and by almost 66% compared to 2020, reinforcing the shift towards electrification.
- China remains the growth engine in power investments, with spending increasing from $295bn in 2020 to $524bn in 2025 despite a slight slowdown in 2025.
- The EU maintains stronger momentum in efficiency investments than China, reaching $206bn in 2025, while China rebounded to $162bn.
- Global fuel investment remained broadly flat at around $1tn in 2025, while power investment exceeded fuel investment by approximately 44%.
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Clean vs fossil
Clean energy continues to outpace fossil fuels in 2025, driven by record growth in power and end-use investments
Global energy investment by type · billion $, 2015–2025
Fig. 7.4Fossil fuel and clean energy shares of total energy investment · %, 2016–2025
Fig. 7.5- Total global energy investment surpassed $3.3tn in 2025, increasing by around 2% year-on-year and reaching a new historical high.
- Clean energy investment exceeded $2.1tn in 2025, almost doubling compared to 2015 and strengthening its dominance in global energy spending.
- Clean energy’s share of total energy investment increased to approximately 64% in 2025, while fossil fuel investment declined to around 36%.
- Since 2022, cumulative clean investment has significantly exceeded fossil ones, confirming a reallocation of global capital flows toward low-carbon technologies.
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Transition investment
Global transition investment surpassed $2.3tn in 2025, with renewables, efficiency and grids driving capital allocation
Investment in the energy transition worldwide · billion $, 2005–2025
Fig. 7.6Global clean energy investment by subsector · billion $, 2025
Fig. 7.7- Global energy transition investment increased from just $60bn in 2005 to more than $2.3tn in 2025, representing nearly 40x growth over two decades.
- Investment growth accelerated sharply after 2020, with total spending more than doubling from $973bn in 2020 to $2.3tn in 2025.
- Renewable power remained the largest investment category in 2025 at $780bn, closely followed by energy efficiency and end-use investments at $773bn.
- Renewables, efficiency, and grids together accounted for more than 88% of total clean energy investment in 2025, reinforcing their central role in the energy transition.
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Commodity prices
Energy markets in 2025 remained shaped by geopolitical risk, with Middle East tensions reinforcing structural volatility in prices
Energy commodity prices and USD/EUR exchange rate · €/MWh, 2015–May 2026
Fig. 7.8- The 2025 escalation in the Middle East renewed fears of a Hormuz supply shock, with analysts warning that a prolonged closure could push oil prices above $120/bbl.
- Henry Hub prices remained comparatively stable despite global tensions, highlighting the resilience of U.S. domestic gas production and lower import dependency.
- Oil and gas markets increasingly priced in geopolitical risk premiums during 2025, driven by attacks on energy infrastructure, shipping disruptions.
- The divergence between European and U.S. gas prices continued to underline the strategic importance of energy independence and diversified supply chains.
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Distribution grids
Romania's electricity distribution investments prioritize network modernization, reflecting the transition toward a smarter and more resilient grid.
Distribution investment needs by category · mil €, 2025
Fig. 7.9- Network modernization accounts for the largest share of planned electricity distribution investments.
- Network expansion is the second-largest investment priority, supporting grid reinforcement.
- Smart meter deployment advances grid efficiency and improves consumer participation.
- Digitalization and other investments enhance grid flexibility, monitoring and operational resilience.
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Distribution grids
DEER accounts for the largest share of planned distribution investments, reflecting differing network development requirements.
Distribution investment needs by company · bn €, 2025
Fig. 7.10- DEER plans the highest overall investment across all distribution categories.
- RER allocates substantial funding to network modernization and EU-supported projects.
- DEO and Delgaz present comparatively smaller but diversified investment portfolios.
- Network modernization remains the largest expenditure category for every distribution operator.
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Storage costs
BESS costs are projected to decline steadily through 2050, significantly improving the economics of energy storage deployment.
Energy storage investment cost by scenario · $/kWh, 2024–2050
Fig. 7.11- All scenarios project continuous declines in storage investment costs through 2050.
- Low-cost scenario projects investment costs declining to approximately $20/kWh by 2050.
- High-cost scenario also shows substantial long-term cost reductions despite slower declines.
- Falling storage costs are expected to strengthen investment in grid flexibility and renewables integration.
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Storage costs
Energy storage operational costs are projected to decline steadily through 2050, improving long-term profitability and investment attractiveness.
Storage operational cost forecast · €/kW/year, 2024–2050
Fig. 7.12- Operating costs decline steadily from €2.5 to below €1.0/kW/year by 2050.
- The fastest reductions occur during the initial years of the forecast period.
- Lower operating expenses improve the lifetime competitiveness of storage investments.
- Declining operational costs reinforce the business case for large-scale battery deployment.
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