Specific details on the proposed strategic spend in hydro were not immediately available. The move comes on top of ongoing energy market deregulation.

While it enjoys significant hydro power assets, Romania’s energy resource asset base is dominated by thermal power and the government is also planning to build new nuclear plants.

The government plans to list hydro power utility Hidroelectrica in 2008. Recently, credit ratings agency Standard and Poor’s (S&P) lifted its corporate rating on the utility given its low cost asset base plus improving demand and market conditions.

S&P cautioned, however, against any sell-off of hydro plants as they were core to the improved outlook for the utility.