Hidroelectrica established a joint venture partnership with Masdar from the United Arab Emirates for the development of renewable energy projects.
Ahead of its stock market listing, Romania’s largest electricity producer Hidroelectrica is founding a renewables firm with Abu Dhabi Future Energy Company – Masdar, ZF reported. The state-owned hydropower producer’s shareholder assembly has supported the initiative. The joint venture would develop, invest in, build and operate green energy facilities, the article reveals.
The government controls 80% of the utility.
In December, Abu Dhabi National Energy Co. (TAQA) and Abu Dhabi National Oil Co. (ADNOC) joined Mubadala Investment Co., the emirate’s investment fund, as shareholders in Masdar. The state-controlled company from the United Arab Emirates has ambitious worldwide ambitions in the renewables business including green hydrogen.
Masdar is expanding its presence in the green energy sector throughout the world
According to Masdar, it operates in more than 30 countries with a portfolio, including investment pledges, of more than USD 30 billion. It pointed to Hywind Scotland, the world’s first floating offshore wind farm, and the Sharjah Waste-to-Energy Project, the first commercial facility of its kind in the Middle East.
Masdar has a stake in the largest wind power plant in Romania’s neighbor Serbia.
Hidroelectrica, which is diversifying its business, has posted a 40% jump in revenues for last year, to EUR 1.85 billion at the current exchange rate, while net income surged 32.7% to EUR 813 million. The company sold 14.33 TWh of electricity, 16% less than in 2021, but the average price spiked 65% to EUR 114 per MWh.
Hidroelectrica is diversifying its portfolio and pledging major investments ahead of its long-awaited initial public offer
The Romanian utility is also entering the green hydrogen sector. It is the most likely candidate to win the concession for Europe’s biggest solar power project, according a report. Hidroelectrica is reviving dormant hydropower projects as Romania is rushing to use grants and soft loans from the European Union’s Recovery and Resilience Facility. One of the endeavors is for two such systems on the Danube, which would be installed in cooperation with Bulgaria.
Minister of Energy Virgil Popescu said earlier that Masdar is interested in investments in energy corridors in Romania. After visiting the UAE, he said he discussed joint endeavors in establishing gas routes from the Persian Gulf, the installation of green energy plants, energy efficiency measures and the introduction of hydrogen.
Of note, Investment firm Fondul Proprietatea has long been pushing for an initial public offering of Hidroelectrica where it would sell its 19.9% stake.