Electrica is establishing a subsidiary with the aim to develop a portfolio of electricity production of 400 MW from renewable sources and 100 MW in storage capacity.
After the acquisition of a 7.5 MW solar power plant last year, Electrica is officially entering the renewables sector with a proposition to shareholders to approve the registration of Electrica Producţie Energie. The Romanian company said the subsidiary would run electricity generation projects from renewable sources with a total capacity of 400 MW and 100 MW in power storage.
Electrica’s shareholders are scheduled to meet in August. The government has a 49% stake in the power supplier and distributor, which is listed both in Bucharest and London.
The legislation that enabled corporate power purchase agreements prompted Electrica to develop a power production portfolio
The move is in line with the five-year strategy through 2023, the firm pointed out and noted it is pursuing synergies in its sector. Electrica stressed the law now allows long-term contracts to be directly negotiated with consumers and that it makes project financing easier. They are also known as corporate power purchase agreements.
The new subsidiary would both acquire and develop projects, the statement adds.
The company has merged its power distribution companies
Electrica said in January that it completed the merger of all its three power distribution subsidiaries into Distribuție Energie Electrică Romania. It also merged two energy services companies under Filiala de Întreținere și Servicii Energetice Electrica Serv.
The European Bank for Reconstruction and Development and Allianz both hold more than 5% of Electrica.