Masdar and Romania’s Hidroelectrica to Work On Establishing Solar and PV Projects

Hidroelectrica, Romania’s leading green energy producer, and the UAE-based Masdar, state-owned clean energy company, have signed an agreement to expand the scope of the proposed joint venture (JV), which includes the realisation of on-shore and floating solar and photovoltaic projects, as well as the implementation of energy storage systems in batteries, under conditions of technological exclusivity, for a period of three years.

The agreement was reached as an official delegation from Romania, which is on a three-day “working visit” to the UAE. Hidroelectrica signed an agreement with Masdar for the development of renewable energy projects in Romania in March 2023.

The delegation includes Romania’s Minister of Transport Sorin Grindeanu, Minister of Foreign Affairs Luminița Odobescu, Minister of the Economy Radu Oprea, Minister of Agriculture, Florin Barbu, Minister of Energy Sebastian Burduja, Minister for Digitisation Bogdan Ivan, Hidroelectrica President Karoly Borbely and other officials.

The two companies also consented to extend the agreement for three more years, given that during the first three-year period the JV’s proposal to approve the Board, for the Final Investment Decision (FID) phase, cumulative investments of 2 GW (greenfield or brownfield projects) among others.

They have also agreed that through the JV, they can also explore business opportunities in other technologies (onshore and off-shore wind), and in other geographical areas outside Romania and the decisions to be taken on a case-by-case basis.

Major Opportunity

Important Karoly Borbely said that the visit to the UAE has been an extremely important opportunity to promote economic cooperation and investments between the two countries. The latest agreement, which is an extension of last year’s agreement with Masdar, demonstrates their common commitment to promote sustainability and the diversification of the energy source in Romania.

Borbely also said that they were determined to continue and strengthen the collaboration with Masdar for the development of renewable energy projects in Romania.

“At the moment we are focusing on finalising the negotiations for the Shareholder Agreement (SHA) for the JV to be established by the two companies in equal shares. We proposed that the first investment made by the new company be a pilot project for the installation of floating photovoltaic panels on seven reservoirs on the middle and lower Olts, region in ourcountry,” Borbely added.

Masdar, whose major shareholders include Abu Dhabi National Oil Company (ADNOC), Abu Dhabi National Energy Company (TAQA) and Mubadala Investment Company, is one of the world leaders in developing and investing in renewable energy projects.

The company has invested more than $20 billion in renewable capacity globally, with nearly 15,000 MW of installed capacity in operation and development.

Hidroelectrica is the largest producer of green energy in Romania and provides technological services for the National Energy System. The company, essential for a strategic sector with national security implications, operates 187 plants with a hydropower capacity of 6.3 GW and – in addition, owns a wind farm in Crucea with an installed capacity of 108 MW. The company also holds a 13.09% share of the supply market.