Romania’s Hidroelectrica struck by worst hydrology so far

Romanian state-owned hydropower operator and electricity supplier Hidroelectrica is expecting record-low output this year amid a severe drought. However, it entered the winter season with much higher water reserves than in 2024. The company projected its annual profit at EUR 590 million.

Chronic drought and heat in Southeastern Europe may require countries in the region to invest massively in desalination. Whether a result of climate change or what skeptics consider a cyclical phenomenon, it is heavily impacting the economy and nature.

There is a trend of decreasing water levels in rivers, lakes and reservoirs. It spells uncertainty for hydropower projects, especially for ones on small watercourses, very sensitive to drought. Following extreme declines in water levels in hydropower reservoirs in Bosnia and Herzegovina, Serbia and Greece, Romania’s Hidroelectrica also sounded the alarm.

The state-owned utility and electricity supplier expects record-low production in 2025, just above 11 TWh, President of the Board of Directors Bogdan Nicolae Badea said at the Focus Energetic conference, as quoted by Agerpres.

It is the driest year so far, he stressed. Output is seemingly weaker even than in 2012, when the company fell into insolvency.

Weather effect weakening, but it’s no time to relax

Conversely, Hidroelectrica expects its profit to reach RON 3 billion (EUR 590 million) this year, Badea revealed. Furthermore, he pointed out that water reserves are at around 73%, compared to 64% from the same period of 2024.

The chief executive said he has noticed a pattern change and estimated that the pressure has been reduced in terms of the impact of weather factors on the energy sector. “But I don’t think it’s time to relax. Because, from what I have observed statistically in previous years, even if there were situations in which we had milder winters, in which episodes of extreme cold lasted less, these issues can arise at any time,” he explained.

Free market is only way for correct electricity pricing

Badea said he was “extremely happy” because of the return to the free market, arguing it is the only way for correct pricing. Hidroelectrica recently announced that it has surpassed one million household and non-household customers in the end-consumer supply market.

The company has 188 hydroelectric plants with a total capacity of 6.4 GW, and the Crucea wind farm of 108 MW.