Romania’s Electrica gets shareholders’ greenlight for EUR 235 mln new power plants

The shareholders of the utilities company Electrica (BVB: EL) approved the investment project in Craiova, which provides for the construction of electricity and thermal energy production capacities for the city's centralized heating system and for the industrial consumer Ford Otosan Romania, according to a company’s note to investors.

The total investment value is up to EUR 235 million, plus VAT, for both objectives, according to a report by Electrica submitted to the Bucharest Stock Exchange.

The first objective, with an estimated value of EUR 157.5 million, aims to build a cogeneration plant intended to supply the Centralized Thermal Energy Supply System in Craiova. The second objective, valued at EUR 65.5 million, involves the construction of a plant dedicated to providing thermal energy for technological processes and heating the Ford Otosan Romania industrial platform.

The total value of the project also includes a reserve of approximately 5%, intended to cover possible cost increases during the implementation stage and developments in the energy equipment market, which raises the investment ceiling to EUR 235 million, excluding VAT.

Electrica would finance the investment from secured or unsecured loans and/or from bond issues previously approved by shareholders, within the limit of the EUR 1 billion ceiling approved by the EGMS Decision of April 29, 2026. The company specified that bridge financing can be used until the bonds are issued or loans dedicated to the project, if these will have more advantageous financial conditions, without increasing the total financing ceiling already approved.

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