Romania-based Hidroelectrica and UAE-based Masdar are setting up a joint venture (JV) to collaborate on the implementation of floating solar projects, among other things, with plans to explore opportunities in other technologies such as offshore wind.
The parties plan to work together on the implementation of onshore and floating photovoltaic solar projects, as well as energy storage systems in batteries, under technological exclusivity, for a period of three years.
The collaboration may be extended for another three years if the joint venture meets certain conditions during the initial three-year period, as proposed by the joint venture and approved by the board for the final investment decision (FID) phase.
These conditions include reaching cumulative investments of 2,000 MW in greenfield or brownfield projects. Additionally, the joint venture plans to explore business opportunities in other technologies, such as onshore and offshore wind, or geographical areas, outside Romania for example, with decisions made case by case, said Hidroelectrica.
The agreement is subject to obtaining subsequent pending internal approvals from both companies on the final version of the shareholder agreement (SHA), which will incorporate these proposals.
Karoly Borbely, President of Hidroelectrica, led a delegation from the company that participated in a working visit to the United Arab Emirates from April 17 to19, 2024, part of Prime Minister Marcel Ciolacu’s tour in the Gulf states between April 16 and 19, 2024.
“The visit to the United Arab Emirates represents an extremely important opportunity for the promotion of economic cooperation and investments between the two countries. The signing of last year’s agreement with Masdar demonstrates our common commitment to the promotion of the sustainability and diversification of the energy source in Romania,” said Karoly Borbely , Hidroelectrica CEO.
“We are determined to continue and strengthen the collaboration with Masdar for the development of renewable energy projects in the country. At the moment we are focusing on the completion of the negotiations for the Shareholder Agreement (SHA) to be established by the two partners, Hidro and Masdar, as our first investment company to be a pilot project for the installation of floating photovoltaic panels on seven reservoirs on the middle and lower Olt.”
The Romanian government delegation included Minister of Transport Sorin Grindeanu, Minister of Foreign Affairs Luminita Odobescu, Minister of the Economy Radu Oprea, Minister of Agriculture Florin Barbu, Minister of Energy Sebastian Burduja, Minister of Digitization Bogdan Ivan, President of ANCOM Valeriu Zgonea, President of ANSVSA Alexandru Bociu, President of Hidroelectrica Karoly Borbely, and Director of the Port of Constanta Mihai Teodorescu.
Masdar and Indonesian state-owned utility company PLN in November 2023 launched what is said to be the largest floating solar project in Indonesia. The project marks Masdar’s first floating solar project in this region.
In addition to being the largest floating solar project in Indonesia, it is also the largest such project built in a hydropower reservoir, with a water depth of 100 meters, water level fluctuation of 18 meters, and a 50-meter difference in water bottom elevation.