According to Silfab, this acquisition seals a key strategic partnership in a highly lucrative and relatively low-risk market. The investment also marks the company’s entrance into the Romanian energy market, where Idrofin, through its controlled company Hidrogest Energia Srl, is currently developing a 23MW network of micro hydropower plants which, once brought to completion, will generate an annual hydroelectric capacity of 76MkWh, for a total investment of over EU 60M.
In addition to three hydroelectric plants already operating along the Barbat River, Idrofin is currently developing ‘Chemp Roscani’, a new hydroelectric plant in the Dobra River basin area which will supply an annual output of 6.6MW. Earlier this year, the company completed the government authorization process to start the construction works of Chemp Roscani, scheduled to commence within the next few months.
The economic and financial effort required to develop these projects – a commitment that Idrofin has pursued both individually and in partnership with other organizations – has been compensated by a high level of profitability with long-term return on investments close to 15% for over 50 years. These exceptionally high performances are in large part guaranteed by the Green Certificate incentive program introduced by the Romanian government to facilitate the growth of locally-produced renewable energy, including hydropower, wind and solar energy. Under this program, micro hydropower plants such as Chemp Roscani are eligible to receive 3 Green Certificates for each MWh delivered to the local electricity grid for a period of 15 years.
In addition to Idrofin, which currently holds 93% of the share capital, Hidrogest is also partly controlled by Espe Energia Srl, a Romanian company headquartered in Padova which owns and operates five hydropower plants.
