Electrica and Liberty Galați to Jointly Develop Up to 500 MW of Solar and Storage

Electrica — in which the Romanian Government holds a 49.8% stake — has signed a memorandum of understanding with Liberty Galați to develop up to 500 MW of combined solar generation and energy storage on land owned by the currently inactive steel works. The agreement, disclosed in a stock-exchange filing, sets out an operating model intended to maximise self-consumption, strengthen supply reliability and optimise long-term costs, the company said.

The proposed structure seeks to capitalise on the strategic complementarities between the two firms: Electrica brings experience as an electricity supplier, distributor and renewable investor, while Liberty Galați contributes the site footprint and industrial scale. The memorandum follows Electrica’s recent emergency move to assume the plant’s electricity supply contract — a step taken two weeks earlier to prevent disconnection over unpaid bills.

Electrica noted that cutting power to a blast furnace would effectively shut the facility down permanently. The steel works is the country’s largest, but is currently inactive, insolvent and carrying substantial debt.

Next steps include feasibility studies for the sites, which are located on land beside the Danube in eastern Romania, near the border with Moldova and Ukraine. According to Electrica’s update, the two parties would develop solar and storage assets with combined capacity of up to 500 MW, with detailed terms to be defined after the feasibility work is completed.

Electrica’s chief executive, Alexandru-Aurelian Chiriță, said the partnership is intended to leverage both companies’ technological and financial capabilities as a catalyst for change in Romania’s energy sector. “Final partnership terms are to be defined following feasibility studies and will be implemented once all corporate approvals are secured,” he said, adding that the initiative aims to create “a model of excellence adapted to current sustainability requirements” and to set a new performance benchmark for the national energy industry.

Earlier, Liberty Galați — part of the Liberty Steel Group — outlined a EUR 1 billion plan to reach carbon neutrality by 2030. When Electrica announced it would take over the plant’s power contract, Chiriță emphasised the strategic importance of preserving the works: “Not now, when Europe is rearming. Not now, when the reconstruction of Ukraine will require millions of tons of steel from our border. Not now, when European steel production can be a real competitive advantage for the first time in decades.”

Electrica supplies electricity to about four million end customers across 18 counties in Northern Transylvania, Southern Transylvania and Northern Muntenia. The group recently reported record preliminary results: consolidated net profit jumped 159% in 2025 to RON 1.22 billion (EUR 239 million), while EBITDA rose to RON 2.38 billion — 64.5% higher than the previous year.

On the renewables and storage front, Electrica currently operates 46.5 MW within a 307.5 MW renewables portfolio. The company also plans 19 energy storage facilities totalling 1.17 GWh and three modular, interoperable data centres as part of its broader transition strategy.