In a significant move to enhance its energy storage capabilities, Romanian electricity producer Hidroelectrica has secured shareholder approval for new pumped-storage hydropower initiatives. This decision was made during an extraordinary general meeting, marking a strategic expansion in the company’s operations.
The shareholders greenlit a joint venture with EDF Power Solutions International for the Tarnita-Lapustesti project, which is set to be a 1,000 MW pumped-storage facility. This project is viewed as a critical balancing asset for Romania’s future energy landscape. The partnership will operate on a 50/50 ownership structure, with the current decision establishing the legal framework necessary for the project. However, the final investment decision will hinge on the establishment of revenue support mechanisms.
Additionally, shareholders have approved preliminary steps for another pumped-storage initiative. Hidroelectrica has initiated due diligence and engaged legal advisors for a potential acquisition of a 50% stake in HPP Frasin-Pângarati, a 300 MW project under development by Hidro Blue Energy, which is part of IULIUS Holding Developments.
The Frasin-Pângarati facility is designed to serve as a large-scale energy storage solution by utilizing excess electricity to pump water into an upper reservoir and subsequently releasing it during peak demand periods. Documentation related to the project indicates that Hidroelectrica and the private developer intend to form a long-term partnership, sharing both management duties and financial outcomes.
Following these developments, investor sentiment has been notably positive. Hidroelectrica’s shares reached an intraday record of approximately €26.8 before settling at around €27.1. The company’s market capitalization has risen to about €12 billion, reflecting growing confidence in its role within Romania’s evolving energy storage and network balancing framework.
