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Romanian electricity supplier, distributor and solar power plant operator Electrica agreed with Liberty Galați to jointly develop solar power and energy storage capacities of up to 500 MW. The facilities would be located on land owned by the currently inactive steel works.
Electrica, in which the Romanian Government holds a 49.8% stake, signed a memorandum of understanding with Liberty Galați for the development of joint energy projects. The proposed operating model aims to maximize self-consumption and power supply reliability, while optimizing costs over the long term, the electricity supplier, distributor and producer said in a stock exchange filing.
The chosen structure allows for leveraging the strategic complementarities between the two entities, according to Electrica, which invests in renewables and provides energy services. Just two weeks ago, it said it took over the electricity supply contract of Liberty Galați to prevent its disconnection from the grid amid unpaid bills.
It is the country’s largest steel plant, currently inactive and insolvent, under massive debt. Cutting power to a blast furnace shuts it down irreversibly.
Next step are feasibility studies
Electrica revealed that the projects are for land owned by Liberty Galați. It is at the Danube river in eastern Romania, at the border with Moldova and Ukraine.
The two sides would develop solar power and energy storage of up to 500 MW, according to the update.
Electrica didn’t elaborate. Its Chief Executive Officer Alexandru-Aurelian Chiriță said that under the agreement, the two companies intend to leverage their technological and financial capabilities as a catalyst for transformation within Romania’s energy landscape.
“Final partnership terms are to be defined following feasibility studies and will be implemented once all corporate approvals are secured. This initiative aims to establish a model of excellence adapted to current sustainability requirements, with the goal of setting a new performance benchmark in the Romanian energy industry. For Electrica, this partnership is an excellent opportunity to generate added value for our investors, as well as for the energy industry, by leveraging our experience in the energy transition,” he explained.
Grand plans for insolvent steel plant
Earlier, Liberty Galați announced a EUR 1 billion plan to become carbon neutral by 2030. The firm is part of Liberty Steel Group of the GFG Alliance.
When Electrica said it would take over the power supply contract, Chiriță stressed that Romania can’t afford to lose the steel works.
“Not now, when Europe is rearming. Not now, when the reconstruction of Ukraine will require millions of tons of steel from our border. Not now, when European steel production can be a real competitive advantage for the first time in decades,” he stated at the time.
Electrica distributes electricity to four million users, covering 18 counties in the regions of Northern Transylvania, Southern Transylvania and Northern Muntenia.
The group has just posted a record annual net profit and earnings before interest, taxes, depreciation and amortization (ebitda). The preliminary consolidated net profit spiked 159% in 2025, to RON 1.22 billion (EUR 239 million). Ebitda came in at RON 2.38 billion or 64.5% more than in the previous year.
Electrica has 46.5 MW in operation within a 307.5 MW renewables project portfolio. It plans 19 energy storage facilities of 1.17 GWh altogether, as well as three modular and interoperable data centers.
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