The public debate on prioritizing investments in the hydropower sector provides an opportunity to explain how Hidroelectrica shapes its investment strategy and the criteria underlying its investment decisions. As a strategic company and an issuer listed on the Bucharest Stock Exchange, Hidroelectrica bases its investments on technical, economic, financial, legal and environmental analyses carried out for each individual project, in accordance with the principles of corporate governance and with the objectives approved by the shareholders.
Hidroelectrica's investment strategy does not involve choosing between retrofitting existing plants and completing hydropower developments that are at advanced stages of execution. These two directions address different objectives and complement each other within the same development program, aiming to increase the company's performance and to strengthen its contribution to the security of the National Power System.
Modernization of the hydropower assets is the most extensive component of the company's investment program. Hidroelectrica is carrying out investments of over 11 billion RON for the retrofitting of capacities totalling more than 1,000 MW, the implementation of SCADA systems and the development of energy storage capacities. These investments increase the efficiency and availability of existing assets, extend their operating life and enhance flexibility in the operation of the power system.
Alongside this, the company holds a portfolio of hydropower developments at advanced stages of execution, which can bring additional generation capacities, dispatchable power and essential water management functions, such as flow regulation, flood mitigation and water supply. The continuation of these investments is decided on a case-by-case basis, based on updated assessments of technical feasibility, economic efficiency, financial impact, compliance with legislation and environmental conditions, as well as the contribution of each project to creating value for the company, for shareholders and for the National Power System.
Hidroelectrica appreciates the interest shown by civil society in the development of the energy sector and considers that independent studies contribute to the debate on the future of investments in the field. Many of the directions highlighted in the study published by Declic, such as retrofitting, digitalization and the development of storage capacities, are already among the investment priorities assumed and financed by the company.
The analysis of the study published by Declic shows that its recommendations are built on a comparison between the benefits of retrofitting and those estimated for other categories of investments, without a dedicated analysis of hydropower projects that are at advanced stages of execution. The retrofitting of existing plants and the completion of such developments have different effects on the National Power System and address distinct investment objectives. From this perspective, the conclusions of the study do not capture the complementary nature of these investments and therefore cannot, in isolation, form the basis for a recommendation regarding the continuation or termination of projects that are at advanced stages of execution. Furthermore, some of the indicators used represent average values calculated at the level of a sample of European states, which cannot be automatically extrapolated to the hydropower fleet in Romania. The authors of the study state that these indicators are indicative and require validation for each individual site. For this reason, Hidroelectrica bases its investment decisions on project-specific assessments that integrate technical, economic, financial, legal and environmental criteria.
Hidroelectrica supports a debate based on transparency, rigor and verifiable information and considers it useful for studies that make recommendations on strategic investments to be accompanied by the complete methodology, working assumptions and data sets used, so that their conclusions can be analysed and validated objectively.
Hidroelectrica's investment strategy will continue to focus on the sustainable development of the company, the efficient use of capital and the consolidation of the role of hydropower in the National Power System, through investment decisions based on rigorous analyses, the creation of value for shareholders and compliance with corporate governance principles.