Romania's state-controlled group Hidroelectrica (BVB: H2O), which faced lower turnover and profit last year amid adverse weather conditions, has earmarked RON 660 million (EUR 130 million) to invest in 2025 for diversification projects, including solar projects, according to the 2025 budget draft submitted to the shareholders' vote at the April 10 meeting.

Speaking at a conference on March 17, Hidroelectrica's CEO Karoly Borbely said that some projects are under analysis. 

"There are years when we have a hydrological deficit, and this must be countered in such a way that the operational efficiency in the production area is constant. Business measures must be taken in such a way that your profitability and dividends do not decrease [during such periods]," he said, commenting on the company's activity, as reported by Ziarul Financiar.

In April 2024, Hidroelectrica and UAE's Masdar Energy announced a joint venture partnership to invest more than EUR 1.5 billion in the next three years in photovoltaic plants, floating solar power systems on dam reservoirs, and battery storage. However, nothing concrete followed so far.

Still, in December 2024, Hidroelectrica announced that the work at a 10 MW floating PV park on Olt River is about to begin, three years after the project was initiated. The company has launched a tender to contract the works necessary for the turnkey implementation of the project, with an estimated value of RON 47 million plus VAT.

The net profit reported by Hidroelectrica (BVB: H2O) contracted by 35% y/y to RON 4.12 billion (EUR 800 million) in 2024. The company expects its net profit to decrease by 13% y/y to RON 3.55 billion (EUR 700 million) in 2025, despite the expected 2% y/y increase in revenues to RON 10.3 billion, according to its budget sent to shareholders for endorsement.

iulian@romania-insider.com

(Photo source: Inquam Photos/Octav Ganea)