Masdar + Hidroelectrica to jointly invest EUR 1.5 bn in new renewables projects: UAE renewables giant Masdar and Romanian state-owned utility company Hidroelectrica agreed to form a joint venture to develop solar and energy storage projects, extending their partnership by three years, Hidroelectrica said in a statement released on Friday.

In detail: The JV — set to be registered by the end of June — will see the two companies collaborating on the development of onshore and floating solar projects and battery energy storage systems in Romania for three years, with an investment of EUR 1.5 bn, Romanian Energy Minister Sebastian Burduja said. The JV’s pilot project will see Masdar develop floating solar plants on seven reservoirs in the middle and downstream sections of the Olt river in Romania, Hidroelectrica CEO Borbèly Kàroly is quoted as saying by Balkan Green Energy News.

Ownership of the JV will be split 50-50 between Masdar and Hidroelectrica, Kàroly reportedly said.

The partnership could venture beyond Romania: With the extension of the JV, the firms agreed to explore potential business in other renewable energy segments — including wind power — and implement them in other countries outside Romania, Kàroly said.

The firms might potentially extend the JV for another term if it proposes final investment decisions for a total of at least 2 GW in greenfield or brownfield projects, according to the news outlet.

Background: Masdar signed a joint cooperation agreement in March last year with Hidroelectrica to deploy offshore wind energy and floating solar energy projects totalling 2 GW in Romania.

MORE FROM THE EU FRONT-

The UK gives Masdar’s offshore wind project the green light: The UK granted Masdar, Equinor, and China Resources Power development consent for the Dudgeon Extension, an expansion of the existing 402 MW Dudgeon offshore wind project, according to a statement released on Saturday. The approval allows for adding up to 30 offshore wind turbines and foundations. The financial ticket and timeline have not been disclosed.

Background on the Dudgeon project: Inaugurated in 2017, the GBP 1.25 bn wind farm was developed and co-owned by Equinor (35%), Masdar (35%), and Statkraft which then sold its 30% stake in the project to China Resources Power. Equinor applied for the Development Consent Order (DCO) for the farm’s expansion back in September 2022. The extension project was chosen as a Pathfinder project — selected on the basis of its goal for coordinated offshore transmission development and the capacity to use an integrated transmission system, the statement adds.

What’s a Pathfinder project? The EIC Pathfinder is a funding programme under Horizon Europe that offers support to R&D teams, funding research to develop the scientific basis to underpin breakthrough technologies. The programme supports the earliest stages of scientific, technological, or deep-tech R&D.

IN DEBT WATCH NEWS-

The renewables giant is planning to take a green bond issuance worth between USD 750 mn and 1 bn to market this year to secure funding for its global renewable projects, Masdar Director of Corporate Finance and Treasury Bruce Johnson told The National last week. The company intends to use the proceeds from the issuance to finance projects in Central Asia, specifically in Uzbekistan and Azerbaijan. This comes as part of a USD 3 bn bonds program aimed at funding clean energy initiatives in the UAE and globally.

This would mark the company's second green bond issuance, after raising USD 750 mn last year in its debut green bond sale, which it listed on both the London Stock Exchange and the ADX.

Is there more where that came from? “The reason why you can expect that we will do another issuance this year, and in future years, is because we have a very strong pipeline of new greenfield projects around the world,” Johnson said. “These projects are at an advanced stage of development and we are committed to meeting their equity funding needs with the proceeds of our green bonds.”

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