Romanian state-owned electricity producer Hidroelectrica will open in December the Bretea hydro power plant in Hunedoara county, after an investment of EUR 58 million. The new plant, built on the Strei river, has an installed power capacity of 12MW and is 62% done.

The Romanian electricity producer wants to build a total of seven hydro power plants on the Strei river. The company estimates the total investment at EUR 420 million.

Between 2012 and 2014, Hidroelectrica invested more than EUR 270 million in new power plants, according to a statement of the company.

For the next five years (2015-2020), the company has an investment budget of over EUR 1.3 billion. Of this total, EUR 450 million will be used for ongoing projects (Racovita, Bretea, Rastolita, Siriu-Surduc, Dumitra-Bumbesti), EUR 350 million will be invested in upgrading four hydro power plants of high capacity, and EUR 240 million will be allocated for maintenance works. Another EUR 300 million will be invested in new renewable energy production capacities.

Hidroelectrica declared insolvency in June 2012 as the company was losing money because of several large contracts to sell electricity below market prices corroborated with lower electricity production due to the draught.

Romania’s Hidroelectrica remains in insolvency despite record profits.

Irina Popescu, irina.popescu@romania-insider.com