State-owned hydropower producer Hidroelectrica recently said it would reduce output by 30%, because of a drought that reduced water levels on Romanian rivers.
“At first, we’ve reduced production by 10%, immediately after Hidroelectrica’s announcement. We’ve tried to buy electricity on (the energy market), but there were no vendors. We will shut down a unit, and thus $7 million will vanish into thin air,” Alro general manager Gheorghe Dobra told a news conference.
The company, Romania’s largest electricity consumer, expects exports to shrink by 10% following the measure. However, the company does not expect to conclude the fourth quarter this year with a loss.
For this year, Alro has planned investments of $30 million. Since 2002, the company has invested $290 million locally.
Dutch-registered group Vimetco holds 87.96% in Alro. Another 10.03% is owned by investment fund Fondul Proprietatea (FP.RO).