Romanian energy company Hidroelectrica announced on Thursday (18 April) that it has signed an agreement with UAE renewable energy company Masdar to expand the existing scope of a planned joint venture (JVC).
In March 2023, Hidroelectrica and Masdar signed a joint venture agreement for the development of wind farms offshore and floating solar parks in Romania
As part of the agreement, the joint venture is expected to include the implementation of on-shore and floating photovoltaic solar projects, as well as the deployment of battery energy storage systems, under technological exclusivity, for a period of three years.
UAE’s Masdar signs joint venture for offshore wind and floating solar farms in Romania
The agreement was signed during a working visit to the United Arab Emirates, taking place from 17 April to 19 April.
The exclusive collaboration can be extended for an additional period of three years, provided that the joint venture proposes, during the first three-year period for the approval of the Board, for the FID phase, cumulative investments of 2,000 MW (greenfield or brownfield projects) and the parties agree on the conditions for extending exclusivity for a new period.
Both sides have agreed that through the JVC, they can explore business opportunities in other technologies (onshore and offshore wind) or other geographical areas (outside Romania), with decisions to be made for each case separately.
“The visit to the United Arab Emirates represents an extremely important opportunity for promoting economic cooperation and investments between the two countries. The signing of the extension agreement with Masdar from last year demonstrates our common commitment to promoting sustainability and diversifying the energy source in Romania,” said Karoly Borbely, CEO of Hidroelectrica. “We are determined to continue and strengthen our collaboration with Masdar for the development of renewable energy projects in our country.”
“At this moment, we are focusing on finalising the negotiations for the Shareholders’ Agreement (SHA) in the joint venture to be established by the two partners, Hidro and Masdar, on equal shares. We aim for the first investment made by the new company to be a pilot project for the installation of floating photovoltaic panels on seven reservoirs on the Middle and Lower Olt River,” Mr Borbely added.