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.

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October 9, 2025

by AEA in News

Romania’s Hidroelectrica to equip hydropower plants with battery storage

Romanian state-owned power utility Hidroelectrica will install storage on all its run-of-river hydropower plants, to be able to switch the supply of surplus electricity to the evening peak, according to interim CEO Bogdan Nicolae Badea.

Hybrid power plants are all the rage. Two- and even three-way combinations between batteries and solar and wind power plants have become more and more popular over the past few years, as they enable steadier and more predictable supply. But energy storage can have a meaningful role in tandem with hydropower as well, and interim President of the Board of Directors of Hidroelectrica Bogdan Nicolae Badea revealed plans for such investments.

Namely, impoundment hydroelectric plants control the flow from the reservoir through the dam, so much of their production can be adjusted to demand. Run-of-river facilities can store little to no water, which is why the Romanian state-owned hydropower plant operator intends to add energy storage to its entire operational portfolio in the segment, Badea explained.

Goal is to lower daily price spreads at power exchange

The idea is to switch the supply of electricity from times of surplus within the day to the evening peak, the interim CEO stressed at the Profit Energy.forum. There are seven to eight slots a day at the electricity exchange with very low or negative prices, and others with excessive prices, Badea pointed out.

“Even in free market conditions and affected by external crises, the cost borne by consumers could be somewhat lower than today if Romania had energy storage capacities, so that daily consumption peaks are in balance with production peaks,” the interim CEO underscored.

Price caps hurting Romanian state budget

Romania caps power prices, which harms the state budget, Badea noted and said there are two ways to achieve a balance.

“The first solution is a systemic one – and here all the important participants in the energy sector must invest – and Hidroelectrica is doing this, investing primarily in diversification. We have a wind farm in operation today. We are investing a lot in the storage area and we are trying to combine renewable sources, hydro, photovoltaics, floating photovoltaics,” he stated.

Hidroelectrica signed a contract in April with a consortium of Romanian companies Prime Batteries Technology and Enevo Group, for a lithium ion battery energy storage system at its Crucea Nord wind farm.

Hidroelectrica is investing in storage, solar power and hybrid power plant projects

The company also plans to integrate a BESS with hydropower plant Iron Gate 2 (Porţile de Fier 2) on the Danube. The project is valued at EUR 61.2 million. Some hydropower plants are set to be equipped with rooftop photovoltaic systems.

Badea was also the company chief from 2017 to 2023. He was recently reappointed, after he was the chief investment officer for almost two years.

For the first six months of this year, hydrological data shows a situation reminiscent of the critical moment when the company entered insolvency, in 2015, Badea added. However, unlike that period, today Hidroelectrica is a profitable, stable company and a pillar of the energy system, he stressed.

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