Romania: Coherent strategy at Government level needed for large investments

21. May 2020. / SEE Energy News

Hidroelectrica company already submitted the documents necessary for the elaboration of the Government decisions regarding the situation of the company’s historical investments, to the Ministry of Economy and Energy, said Bogdan Badea CEO of Hidroelectrica.

Badea said that he hopes that these decisions regarding large, historical investments will be issued as soon as possible. In addition to decisions regarding unprofitable investments, the issuance of Government decisions is also necessary for the finalization of some of these investments, which would add to the system hydropower plants with installed capacity of over 250 MW and an additional electricity output of about 0.8 TWh.

He stressed that no company can assume investments of billions of euros without having a predictability of the legislative environment, against the background of a permanent hurdle in establishing public policies, with a lack of coherence between the various legislative acts issued by the Romanian state and without having the certainty of recovering those investments in a certain period of time. The state has set some investment objectives as a priority, but also it has blocked some of them. There is a need, now more than ever, for a coherent strategy at Government level to facilitate the unblocking of major investment projects in the energy sector and to really lead to the achievement of Romania’s targets for renewable energy targets resulting from the Green Deal.

Last month, Minister of Economy and Energy Virgil Popescu announced that all energy companies under the authority of the Ministry will have to draft and approve an investment plan for the next five years by the end of June. The purpose of this move is to use the financial resources these companies have accumulated for stimulating the economic activity. Minister Popescu stressed that the management of the companies who fail to have the investment strategies drafted or passed will be replaced.

 

 

 

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