Hidroelectrica and UAE’s Masdar sign agreement to expand collaboration regarding solar and photovoltaic projects

A delegation of Hidroelectrica, led by Karoly Borbely, president of the company’s directorate, is participating in the working visit to the United Arab Emirates, which takes place between April 17-19, 2024.

The working visit is also attended by a Romanian government delegation consisting of the Minister of Transport Sorin Grindeanu, the Minister of Foreign Affairs Luminița Odobescu, the Minister of Economy Radu Oprea, the Minister of Agriculture Florin Barbu, the Minister of Energy Sebastian Burduja and the Minister of Digitalization, Bogdan Ivan.

In the context of this visit, Hidroelectrica and Masdar agreed to expand the scope of the joint venture (JVC) to be established so that it includes the realization of onshore and floating solar photovoltaic projects, as well as the implementation of energy storage systems in batteries, under conditions of technological exclusivity, for a period of 3 years.

As for the exclusive collaboration, it can be extended for an additional period of 3 more years, provided that during the first 3-year period the joint venture has proposed for the approval of the Board, for the FID phase, cumulative investments of 2,000 MW (greenfield or brownfield projects) and the parties have agreed on the terms of extending the exclusivity for a new period.

The parties also agreed that through the JVC they can explore business opportunities in other technologies (onshore and off-shore wind) or in other geographical areas (outside Romania, for example), the decisions in this regard following to be taken on a case-by-case basis. The document is signed subject to obtaining further internal approvals from both companies, Hidroelectrica and Masdar, on the final text of the Shareholder Agreement (SHA), which will also include these proposals.

Karoly Borbely, CEO of Hidroelectrica: “The visit to the United Arab Emirates represents an extremely important opportunity for promoting economic cooperation and investments between the two countries. The signing of the extension of last year’s agreement with Masdar demonstrates our common commitment to promoting sustainability and diversification of the energy source in Romania. We are determined to continue and strengthen the collaboration with Masdar for the development of renewable energy projects in our country.”

In March last year, Hidroelectrica signed an agreement with Masdar for the development of renewable energy projects in Romania. Controlled by Abu Dhabi National Oil Company, Abu Dhabi National Energy Company PJSC (TAQA) and Mubadala Investment Company, Masdar 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 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.