Hidroelectrica Awarded AHE Vidraru Refurbishment Contract

Hidroelectrica awarded the contract for the refurbishment of the Vidraru Hydropower Plant (AHE Vidraru), one of the most important and strategic investments in the energy infrastructure in Romania.

Hidroelectrica signed the contract for refurbishment works of AHE Vidraru with the association formed by Electromontaj (Association Leader) and Koncar – Engineering Co. Ltd. for production and services, with Butan Grup as subcontractor, following the completion of the award procedure by open (public) tender. The price of the contract is EUR 188,382,020.89 (excluding VAT), the works to be completed in 84 months, according to the execution schedule.

AHE Vidraru, with an installed capacity of 220MW, is located on the right bank of the Arges River in a cavern located 104 m below the river level, with the role of producing 409 GWh/year of electricity by using the hydropower potential available in the Vidraru reservoir and participating in the frequency power regulation in the National Energy System, providing other ancillary services as well.

The acquisition and completion of the refurbishment works on AHE Vidraru expects to achieve the proposed objectives and obtain the following benefits:

• Increasing the active power of each hydro aggregate from 55 MW to a minimum of 58.8 MW, maintaining the maximum discharged flow of 22.5 cubic meters/s per unit (respectively 90 cubic meters/s total power plant)
• Increasing the yields of the hydro aggregates and implicitly the overall efficiency of the site
• Increasing performance and return on investment above the initial level
• Increasing the reliability, availability and safety in operation for all the equipment and installations of the Vidraru Hydropower site while ensuring the volume and quality of the ancillary services provided by HPP
• Introduction of a system that allows centralized monitoring and control from Hidroelectrica’s Dispatch Center (DHA)/ National Dispatch centre (DEN), thus achieving the premises for increasing the monitoring efficiency and flexibility in operation of the HPP
• Preparing the equipment and installations of the Vidraru Power Plant and the other parts of the entire site for a new operating life cycle.

“The award of this contract represents an important step for the modernization and efficiency of the company’s hydropower infrastructure. The upgrading of Vidraru will ensure not only an increased production capacity of renewable energy, but also a positive impact on the stability of the national energy network. We are confident that the partnership with Electromontaj and its associates will bring remarkable results. This major investment underlines Hidroelectrica’s commitment to modernize and optimize its production capabilities, thus ensuring a significant contribution to national and European renewable energy and sustainability goals,” Károly Borbély, CEO of Hidroelectrica, said.

“The success we are marking comes as a result of an in-depth analysis of the market that allowed us to understand the causes that previously blocked major investments at Vidraru. We updated the indicators to the correct values, listened and understood the challenges raised by the possible contractors of a project of such scope and made certain parameters flexible so that the approach became feasible. Vidraru’s renovation project is a complex and ambitious one, involving state-of-the-art technologies and innovative solutions. We look forward to starting work and seeing the long-term positive impact on energy production and the environment. We thank our team and partners for their efforts so far, and we are ready to bring this project to fruition,” Bogdan Badea, Chief Investment Officer at Hidroelectrica, added.

 

About Hidroelectrica

Hidroelectrica is leader in the production of energy and the main provider of ancillary services necessary in the National Energy System and is a vital company for a strategic sector with implications in national security.

Founded in the year 2000, Hidroelectrica managed to impose itself on the Romanian Energy Market thanks to its experience, credibility and flexibility, being now the main producer and supplier of energy in Romania and the main provider of ancillary services.

With a production in an average hydrological year of over 17 TWh generated in branches located strategically on the territory of the country, Hidroelectrica supplies about 30% of the total production of energy of the country, depending on the hydraulicity of the year, while the average volume of ancillary services for the past 10 years is about 70% of the secondary adjustment reserve, about 84% of the fast tertiary reserve and 100% of the reactive energy insurance service debited or absorbed from the network in the secondary voltage adjustment band, from the National Energy System needs.

Hidroelectrica, by its strong organizational culture, aims to consolidate its leading position on the Romanian Energy Market by optimal development of its production capacities and to become a major player on the Regional Energy Market in the future.

The company is now administered in dual-tier system by a Management Board under the supervision of a Supervisory Board.

On 31.12.2023, the Hidroelectrica Group registered a net profit of 6,365 million lei compared to a turnover of approx. 12,160 million lei.

In 2023, Hidroelectrica paid dividends to shareholders in the amount of 4,349 million lei.

In 2023, the gross production of 18.12 TWh was obtained in the 187 hydropower plants and small hydropower plants, including five pumping stations, with a total installed energy production capacity of approximately 6.37 GW and 36 wind turbines with a total installed power of 108 MW.

In a world where energy is the main driver of development, Hidroelectrica responds to the challenges posed by the interconnection of markets at regional and European level, through a permanent orientation towards quality and innovation, through the optimization of a strategic management that leads to the sustainable development of society, the efficient use of hydropower resources in order to maximize production and maintain a high level of profit, by ensuring a high availability of electricity production capacities, under the conditions of safe operation of the installations and equipment from the hydropower facilities of Hidroelectrica, respecting the principles of corporate governance.