Electrica to invest €50 mln. in renewable energy

Electrica’s General Manager, Corneliu Stan, told Business Standard the company plans to initially produce 50 MW of “green” energy.

“We are interested in micro power plants, wind power plants and, probably, biomass,” he told Business Standard. Stan added that the company’s management will analyze investment options this week, so that the Board of Directors can make a final decision later this month.

Stan indicated that two years are needed to launch production at a wind power plant, while a micro power plant requires three years to start production.

However, before starting production of renewable energy, Electrica plans to expand its portfolio of industrial clients and increase its acquisition of energy, both from Romania and abroad. “We are currently importing some 80-100 MW, but plan to buy as much as we can, because prices are very good,” Stan said. He added that the company is already discussing deals with potential industrial clients.

The management is to re-discuss Electrica’s participation this week of the construction of two reactors at Romania’s only nuclear power plant, Cernavodă, for which the company should file an bid by October 25. During an interview with Business Standard, Stan also spoke about the privatization of electricity providers and distributors. He said the Authority for State Assets (AVAS), the institution that owns these companies, is considering several options. One is to sell a minority share package to a private company, which can later increase its stock until it obtains controlling interest.

The second is the listing of 10-15 percent of the company’s shares on the Bucharest Stock Exchange, and use the money it earns to modernize the company. Three of Romania’s companies providing and distributing electricity are still owned by the state: Electrica Muntenia Nord, Electrica Transilvania Sud and Electrica Transilvania Nord. The most recent company privatized is Electrica Muntenia Sud, whose controlling interest is to be purchased by Italian group ENEL, for some €820 million.