Hidroelectrica, the largest electricity producer in Romania, announced the opening of its hydroelectric power plant in Hunedoara for December.
The facility is on the Strei river in Transylvania and is presently 62% complete, portal Business-review.eu reported. The EUR 58 million investment is for 12 MW of installed power capacity. Overall, the still insolvent state-owned company is planning to build up to seven hydroelectric power plants on the Strei river, which would require an estimated investment of EUR 420 million. Between 2012 and 2014 Hidroelectrica has invested over EUR 270 million in new power plants, according to company data.
The utility set an investment budget of EUR 1.3 billion for 2015–2020. Hidroelectrica went into insolvency in 2012 following a severe drought and several loss-making contracts which generated a combined loss of USD 1.4 billion. After it underwent a restructuring process the company turned to profit and exited insolvency in 2013, but was forced back into insolvency the following year at the request of contract holders. Following an in-depth investigation, the European Commission said in June that electricity supply contracts signed by Hidroelectrica did not involve state aid within the meaning of the EU rules.
Hidroelectrica recorded a profit of RON 725 million (EUR 161.9 million) from the first six months of this year, 42% more than in the corresponding period of last year. Turnover was also higher by almost EUR 67.77 million year on year. The increase was due to an output of 9.6 TWh, compared to 8.5 TWh in the same period last year.