Romania's Electrica preparation 400 MW renewable resource projects

• Romanian power provider and distributor Electrica [BSE: EL] said that it will ask its investors to approve the establishment of a subsidiary though which it will certainly execute 400 MW renewable resource projects, with an extra 100 MW storage space capability.

Electrica Productie Energie will certainly be arranged as a joint stock company and a subsidiary of Electrica, the business said in a declaration filed with the Bucharest Stock Exchange, BVB, on Friday.

Electrica will possess a 99,9920% stake in the new company, while the rest will be held by Electrica Serv.

According to a separate document uploaded on its website detailing the investors satisfying schedule, Electrica intends to create a portfolio of power generation capabilities from eco-friendly sources, particularly wind and also photo-voltaic, through the new subsidiary. The projects will certainly have a cumulative capability of 400 MW, to which electrical energy storage capacities with a mounted capacity of as much as 100 MW will certainly be included.

The subsidiary will certainly manage the purchase and advancement of projects, specifically the procedure of energy generation farms, integrated with the advancement and also procedure of independent storage options that the company intends to establish in the future, Electrica said.

The project belongs to Electrica's advancement and also financial investment strategy for 2019-2023, the document likewise showed.

Electrica, in which the Romanian state possesses a stake of 48.8%, provides services to over 3.8 million consumers. Its shares are provided on the Bucharest Stock Exchange and also the London Stock Exchange.

Electrica's shares changed hands 0.63% reduced at 12.58 lei ($3.04/ 2.55 euro) by 1529 CET on Tuesday on the Bucharest bourse.