Hidroelectrica and Masdar to Build 2,000 MW of Conventional and Floating Solar Parks
A Hidroelectrica delegation, led by Karoly Borbely, President of the Executive Board of the company, participated in the working visit to the United Arab Emirates, during which Hidroelectrica and Masdar agreed to expand the portfolio of works of the Joint Venture Company (JVC) to be established by the two companies.
The working visit is also attended by a Romanian Government delegation consisting of the Minister of Transport and Infrastructure Sorin-Mihai Grindeanu, the Minister of Foreign Affairs Luminita-Teodora Odobescu, the Minister of Economy Stefan-Radu Oprea, the Minister of Agriculture and Rural Development Florin-Ionut Barbu, the Minister of Energy Sebastian-Ioan Burduja and the Minister of Research, Innovation and Digitalization, Bogdan-Gruia Ivan.
The Joint Venture Company will also include the development of onshore and floating solar PV projects, as well as the development of battery energy storage systems on a technology-exclusive basis for three years. The value of the investments being prepared exceeds EUR 1.5 billion.
As regards exclusive cooperation, it may be extended for a further period of three years, whereas the initial period was set at three years.
During the first period, the joint venture has proposed investments totalling 2,000 MW in greenfield and brownfield projects.
The parties also agreed to explore through this JVC business opportunities in other technologies, such as the installation of onshore and offshore wind turbines or outside Romania’s borders.
The two parties have agreed to sign this document subject to obtaining subsequent internal approvals from both Hidroelectrica and Masdar on the final text of the Shareholder Agreement (SHA), which will include these proposals.
“We have proposed that the first investment of the new company will be a pilot project to install floating photovoltaic panels on seven reservoirs on the middle and lower Olt River,” Karoly Borbely, CEO of Hidroelectrica, stated on this occasion.
“The visit to the United Arab Emirates is an extremely important opportunity to promote economic cooperation and investment between the two countries. The signing of last year’s extension agreement with Masdar demonstrates our shared commitment to promoting sustainability and energy diversification in Romania. We are determined to continue and strengthen our collaboration with Masdar for the development of renewable energy projects in our country. We are currently focused on finalising the negotiations for the Shareholder Agreement (SHA) for the joint venture to be set up by the two partners, Hidro and Masdar, in equal shares. We have proposed that the first investment of the new company will be a pilot project to install floating photovoltaic panels on seven reservoirs on the middle and lower Olt River,” Karoly Borbely, also mentioned.
Hidroelectrica signed an agreement with Masdar last March to develop renewable energy projects in Romania.
42% profit increase
Hidroelectrica, Romania’s largest energy producer, recorded revenues of RON 12.2 billion in 2023, up 30% from the previous year.
Also, the state-owned company’s net profit is RON 6.33 billion, which is 42% above the 2022 level, according to the financial report published on the Bucharest Stock Exchange (BSE).
Given the 30% surplus production compared to the previous year, combined with the new wholesale market conditions, the wholesale market transaction revenues increased by 14% in 2023 compared to 2022.
Hidroelectrica is the largest green energy producer in Romania and provides technological services for the National Energy System. The company, which is essential for a strategic sector with implications for national security, operates 187 power plants with a hydroelectric capacity of 6.3 GW and, in addition, owns a wind farm at Crucea with an installed power of 108 MW.
The company also has a 13.09% share of the electricity supply market.
About Masdar
Controlled by Abu Dhabi National Oil Company, Abu Dhabi National Energy Company PJSC (TAQA) and Mubadala Investment Company, Masdar is one of the world’s leading developers and investors in renewable energy projects.
The company has invested more than USD 20 billion in renewable capacity globally, with nearly 15,000 MW of installed capacity in operation and under development.
In Southeast Europe, Masdar is also active through the Masdar Taaleri joint venture. It won a first market auction last August for its Čibuk 2 project in Serbia, the first wind energy auction in the country.
