The extraordinary general shareholder meeting at Romania's state controlled Hidroelectrica group (BVB: H2O) approved the company's plans to develop its major, 1,000 MW Tarnita-Lapustesti pumped hydropower project under a 50:50 JV with EDF Power Solutions International and also approved preliminary procedures (due diligence) for taking over a 50% stake in another reversible hydropower project with a capacity of 300 MW currently developed by a private investor.

Shareholders of energy producer Hidroelectrica approved on January 27 the association with the French group EDF Power Solutions International for the development of the Tarniţa-Lăpuşteşti pumped-storage hydroelectric power plant by establishing a joint venture with equal participations, 50%–50%.

The decision aims to create the legal and governance framework for the project, without assuming a final investment, this being conditioned by the existence of income support schemes, according to the note to investors.

The shareholders also approved the acquisition of legal advisory services in connection with the company's objective to acquire, upon commissioning, Frasin–Pângărați Pumped-Storage Hydropower Plant, with an installed capacity of 300 MW, which is going to be developed and constructed by Hidro Blue Energy – controlled by IULIUS Holding Developments, the vehicle of entrepreneur Iulian Dascălu, known for his retail and office real estate projects in Iași, Timișoara, Cluj, and Suceava.

The project is presented as one of energy storage, through pumped storage technology, used to balance the energy system: "The CHEAP project uses energy storage technology in an upper basin during periods of surplus, followed by subsequent delivery into the system when there is an electricity deficit on the energy market."

The AGEA documents also indicate an intention for a close partnership with Hidroelectrica. "The common intention of the Parties is to own and manage the Project in equal shares, ensuring a parity governance structure and participation in the results," it is mentioned in the justification for the acquisition of legal services.

Following the announcement, the state-owned company's shares marked a new intra-day historical high of RON 138.4 and closed the day at RON 140 – with a market capitalisation of RON 62 billion (EUR 12 billion).

iulian@romania-insider.com

(Photo source: Inquam Photos/Octav Ganea)