Hydropower in Romania: Cooperation is Key to the Future of Energy

Exploring Romania's Untapped Potential
Romania has approximately 24,700 kilometers of watercourses, including 1,245 kilometers along the Danube River. According to The Romanian National Energy Regulatory Authority, hydropower currently has the largest share of our country's energy mix, at around 26.47%. The power installed in all electricity production units in Romania is 18,309 MW (megawatts), i.e. 18.3 GW (gigawatts). The Siret, Mures, and Olt rivers are the hydrographic basins with the highest potential other than the Danube. Mountain areas contribute about 80% of the total potential of inland rivers due to their abundant flows and steep slopes.
Romanians have a strong belief in the potential of hydropower, a sentiment underscored by the success of the National Company Hidroelectrica shares on the Bucharest Stock Exchange. "No consultant could predict such success with Hidroelectrica’s listing, proving Romania's fantastic potential. We must be brave enough to think big and plan ambitiously," said Borbely Karoly, President of the Hidroelectrica Board, on the company's first anniversary on the stock exchange.
Why Should Romania Increase Its Hydropower Capacity?
Ensuring Energy Supply
Hydropower remains a challenge in the 21st century, as the major constructions were built in the past. The construction of dams and hydroelectric plants significantly contributed to the current national energy production. It currently accounts for more than 20% of Romania's energy, critically supporting a clean future with around 34% of final electricity consumption according to the 2024 National Energy Strategy.
Stabilizing the Energy System
Timing in energy production is critical. To meet high demand during consumption peaks, Romania can activate hydroelectric plants, a stabilization role emphasized in the Strategy 2025 – 2035. Hydropower, combined with natural gas and coal, balances the country's energy production.
Energy Storage
"Storage is the main urgency of the national energy system and that is why I insisted on two components: pumped storage plants and batteries," declared Energy Minister Sebastian Burduja. Pumped storage hydropower plants are one of the current methods to store energy, functioning like a giant battery by storing and releasing energy as needed.
Norway as an Example of Leading Hydropower
In Norway, approximately 96 per cent of all electricity is generated by renewable hydropower. This has given Norwegian industry stable access to inexpensive, clean energy.
The Romanian Government, the European Union, and the EEA and Norway Grants support hydropower development through research and investment. Norway, Iceland, and Liechtenstein, via the EEA and Norway Grants, have funded hydropower projects in Romania with €4 million in grantsdifferent projects to increase renewable energy production. Here are some examples of projects funded by the EEA and Norway Grants, all that benefitted from advanced expertise in partnership with Norwegian companies.
Balkan Hydroenergy SRL (RO), a company based in Timisoara, Mures County, aimed to boost its development and economic competitiveness by upgrading existing equipment with advanced technologies. The project increased the power output for five of six small hydro facilities and improved energy efficiency by up to 15%. Investing in enhanced communication infrastructure will provide real-time data for quick maintenance and operational decisions, giving Balkan Hydro Energy a competitive market edge. The refurbishment will also reduce environmental risks from potential accidents. The Norwegian company City AS, specialized in B2B services, provided innovative solutions for connecting dispatchers with power plants and improving security and monitoring.
In Prahova County, company Hidro Jepi SA and Norwegian partner Minihydro Norge AS aimed to address several key challenges together. While trying to develop and consolidate a sustainable energy business in an emerging economy country the project sought to capitalize on the available hydropower potential on the eastern slope of the Caraiman mountains in the Bucegi massif. The key response to these challenges was to increase hydro power production by installing new turbines to utilize the full production potential and further develop the business by selling green electricity.
Project testimonial Hidro Jepi SA
TMK Hydroenergy Power invested in the construction of a small hydropower plant on the Bârzava river in the Văliug dam area, the purpose of which was to capitalize on the hydropower potential of the Banat basin. The project focused on building a powerhouse with a Francis water turbine and generator on one of the two bottom drainage pipes.The project will generate approximately additional 350 kWh utilizing available current flows, at a very low cost compared to alternative generation from thermal or other hydropower projects, because part of the infrastructure such as the dam and reservoir is already constructed. Therefore, it will contribute to clean and renewable hydroelectricity to the deficient national power resources and reduce Green House Gases (emission by displacing the electricity production requirement of fossil fuel-fired power plants to the extent of its generation. It is expected that new plant will result in reduction of almost 20,000 tons of CO2e emissions over the estimated operating period of 25 years.
Another successful project promotor is the National Company Hidroelectrica. A company well known for its energy production and legacy in the field of hydropower. Established back in 1990 Hidroelectrica is a leader in the production of electricity and the main provider of technological services needed in the National Energy System, being a vital company for a strategic sector with implications for national security.
The project aimed to harness the hydropower potential of the reserve flow from the Poiana Rusca dam. A new automated Small Hydro Power Plant (SHPP) was installed and connected to the grid, producing green electricity.
Outcomes and Beneficiaries? The project developed hydropower potential downstream of the Poiana Rusca dam with an automated SHPP. The plant's 0.230 MWp capacity will generate about 1,450 MWh of electricity annually, reducing CO2 emissions by over 450 tonnes per year.
Project testimonial Hidroelectrica
A Greener Future
Energy diversification and energy security as well as green transition remain important focus area for Romania and for the EEA and Norway Grants. As we are all looking forward to a brighter and greener future!
Written by:
Ana-Maria Axenia, Adviser, Innovation Norway Bucuresti Office