Hidroelectrica will launch its first sustainability report this year. Can you share some details about the report?

Hidroelectrica is a true Romanian champion of sustainability, and this is reflected both in our current activities - producing energy from renewable sources - and in our strategic business line of preserving the company's 100% green DNA in all new projects. Unlike other players in the energy industry who develop renewable energy capacities alongside their main activities, every project at our company is green, and we intend to maintain this approach in the future. We take great pride in our commitment to sustainability, and we believe that this is not only good for the environment but also for our business and for the communities we serve.

At Hidroelectrica, we strongly believe that clean energy is the key to securing a bright future for the next generations. We take great care to act in an environmentally responsible manner because we want our children, grandchildren, great-grandchildren, and all those who come after them to be able to enjoy the beauty of nature that surrounds us. This is why we make responsibility and sustainability central values in all of the projects we undertake, beyond just the technical or economic aspects. We are committed to leaving a positive legacy for future generations, and to ensure that our actions today support a sustainable tomorrow.

At Hidroelectrica, we are committed to standing with the community and supporting projects that have a positive impact on the overall quality of life, and the health of the population, and that add value to our nation's prestige. This is the essence of our social responsibility policy. We believe that we must use our resources to support initiatives that make a difference for the better in people's lives and contribute to the development and progress of our nation as a whole.

We believe in giving back to the community that has contributed to our success. At Hidroelectrica we are always eager to lend a helping hand where we feel our support is needed, and we actively endorse ideas that have the potential to create positive change and improve the lives of communities. Our goal is to use our resources and influence to make a meaningful difference in the world around us.

Our company, Hidroelectrica, is actively developing its ESG strategy to obtain an ESG rating as part of our overall company development. As we work towards this goal, we are also preparing to issue our sustainability report for the year. We are currently on the verge of releasing this report, which will detail our sustainability initiatives and progress.

What green energy production did Hidroelectrica achieve in 2022, compared to 2021?

As mentioned earlier, Hidroelectrica exclusively produces environmentally friendly energy by harnessing the power of renewable resources, specifically water. However, the amount of energy produced is subject to fluctuations based on the annual hydraulicity of the water resource.

In 2021, Hidroelectrica experienced an exceptional abundance of available resources, resulting in significantly higher energy production than the multi-year average. To be precise, the company was able to produce approximately 17 TWh of energy, showcasing the benefits of utilizing sustainable resources for power generation. This accomplishment highlights the importance of considering the availability of resources when it comes to renewable energy production.

In contrast to previous years, the year 2022 was marked by an unprecedented dry spell, which presented significant challenges for our company. Nevertheless, we rose to the occasion and worked tirelessly to extract every available megawatt-hour (MWh) of energy from our hydroelectric facilities. Despite the unfavorable conditions, our company, Hidroelectrica, succeeded in generating an impressive 13.65 terawatt-hours (TWh) of electricity.

Our success in this challenging year is a testament to our unwavering commitment to resource management. We understand that the key to maximizing production lies in closely monitoring local and European weather forecasts, which we do with great care and attention to detail. By doing so, we can plan and adjust our operations in real time, ensuring that we make the most of every opportunity to generate electricity.

Overall, we are extremely proud of our performance in 2022, and we remain committed to continuing to meet the energy needs of our customers while also upholding our environmental and sustainability goals.

What installed capacity does the company have now? Is there a plan to expand this capacity?

I would like to emphasize Hidroelectrica's position on the energy market in Romania, recalling the fact that our company is the largest producer of green energy in the state, with a share of approx. 28% annually, achieved with 15.7 TWh average annual production delivered to the grid. Also, I would like to highlight the fact that Hidroelectrica is the most profitable Romanian company, drawing its energy from the exploitation of a portfolio of 187 hydroelectric plants, with a hydropower capacity of 6,3 GW. To all these is added the Crucea wind farm, with an installed power of 108 MW.

As I want to emphasize furthermore, Hidroelectrica is focused on the development of energy production projects exclusively from renewable sources, a line from which it makes no compromise: the desire to maintain the ”100% green company” label being at the center of our

The company's ambitions, including in the strategic development program, assume the realization of major investments until 2030: 300-600 MW of installed power in on-shore wind farms, 300-500 MW of installed power in on-shore wind farms, 300-500 MW of installed capacity in onshore and floating solar parks, 150 MW for green hydrogen production, alongside new hydropower projects with an installed capacity of 300-750 MW. We are actively creating growth opportunities for ourselves through organic expansion of hydro capacity, seizing wind, and potential additional solar.

Are you considering purchasing other wind farms? In what other renewable energy projects will the company invest?

One of our top priorities in the renewable energy sector is to not only develop new green-field projects but also acquire existing wind or solar parks. We are closely monitoring the market for potential opportunities and are prepared to take action as soon as we identify any promising options.

The company's present operational environment necessitates adjustments in alignment with the guidelines outlined in the European Ecological Pact. The pact aims to achieve carbon-neutral energy production by 2050. Accordingly, all development projects at Hidroelectrica converge on the adoption of eco-friendly and sustainable production technologies.

While the focus of the company's investments is primarily on the hydro sector and the development of the national hydrographic potential, they are not exclusively limited to these areas. Hidroelectrica is also keen on exploring investments in onshore and offshore wind parks, floating photovoltaic parks on managed lakes, solar parks on available land, biomass-based electricity production, hydrogen production via hydrolysis, and the development of e-mobility networks.

In addition to the objective of diversifying its production capacities, Hidroelectrica is also considering vertical integration. As such, the company intends to expand into the energy supply sector by increasing its customer base and directly providing them with access to clean energy that is sustainably produced and sold at a reasonable price.

In which social responsibility projects will the company be involved this year?

Hidroelectrica is deeply committed to social responsibility projects, and we prioritize the well-being of the communities we serve. During the Covid-19 pandemic, we directed more than 10 million lei toward supporting medical units in Romania, reflecting our dedication to ensuring the health and safety of those around us.

As we continue to navigate these challenging times, we remain focused on driving positive change across various areas, including education, ecology, and sports activities. This year, we plan to maintain our dual education programs in partnership with high schools and universities, provide scholarships, and offer incentives for outstanding performance, all to inspire young people to pursue a career in the national energy system.

In addition, our employees frequently participate voluntarily in actions aimed at greening the areas where we operate. It's important to note that the areas around Hidroelectrica's large reservoirs are of exceptional beauty, and we take great pride in keeping these places clean and attractive. By doing so, we hope to contribute to the tourism development of these areas and further support the growth of local communities.