Romanian utilities group Electrica (BVB: EL) announced to investors that it signed on February 24 a Memorandum of Understanding with the integrated steel mill Liberty Galati regarding the joint development of renewable (photovoltaic) energy production and storage capacities of up to 500 MW, on land plots owned by the steel group. Liberty Galati is currently under pre-insolvency procedures, and its assets are for sale, under the guidance of the government that seeks to keep the company in operation.

The proposed operating model aims to maximise self-consumption and power supply reliability, while optimising costs over the long term. 

The chosen structure allows for leveraging the strategic complementarities between the two entities.

“Final partnership terms are to be defined following feasibility studies and will be implemented once all corporate approvals are secured. This initiative aims to establish a model of excellence adapted to current sustainability requirements, to set a new performance benchmark in the Romanian energy industry. For Electrica, this partnership is an excellent opportunity to generate added value for our investors, as well as for the energy industry, by leveraging our experience in the energy transition," said Alexandru-Aurelian Chiriţă, Electrica's general manager, quoted in the press release.

iulian@romania-insider.com

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