15 Drought and Insolvency: Case Study of the Producer-Buyer …
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the five pumping stations with an overall installed capacity of 6331 MW (98.1%
of total installation capacity). Great-capacity power plants may also generate an
optimal cost per MWh, thus, leading to increased profitability for the company. The
selling of Micro Hydropower plants (MHC) will bring an infusion of about 120–150
million Euros, and it will entail a decrease in expenses for staff, maintenance, and
exploitation (of around 20 million Euros/year). Hidroelectrica S.A. must focus its
financial resources on updating the technology of the great-capacity power plants,
which have been exploited for over 30 years [55].
15.5 Conclusions and Policy Implications
Romania’s mountainous landforms favour a relatively significant hydroelectric power
potential (8000 MW). In extra-mountainous areas, there are hydropower plants,
situated only on Siret and Pruth, which provide important liquid discharge. Most
hydropower plants in Romania are distributed on mountainous rivers: Bistrita (along
with Siret and Pruth), Olt, Jiu, Arges, Lotru, Somes, Raul Mare, and so on. The
largest hydrotechnical work is the one done on the Danube (Iron Gates I, with a
potential of 2100 MW, shared with Serbia). Iron Gates I is the only hydropower
plant in Romania, which functions permanently, and that contributes to the largest
amount of hydropower.
The global climatic changes also affect Romania. For the past 25 years, drought
periods are longer and more severe, though, the mean amount of precipitations has
also increased. Unfortunately, heavy rains (100–300 mm/24 h) causing large amounts
of water within a short time span have become more frequent and more significant;
they lead inevitably, to catastrophic floods. The drought recorded in the autumn
of the year 2011, and in the spring of the year 2012, entailed a drastic reduction
in power production provided by the hydropower plants, the reason for which the
company Hidroelectrica S.A. became unable to distribute power to the beneficiaries.
Drought affected the Danube to the same extent; the river is the main hydropower
producer. In this case, Hidroelectrica S.A. was sued by a series of partners who were
no longer satisfied with the quality of the distribution. The contracts signed between
Hidroelectrica S.A., and the partners depend on the forecast of energy production in
the context of a normal hydrological year. A forecasting error may represent 10%.
The drought comprising the entire Romanian territory, entailed a drastic drop in
production: many hydropower plants produced only 60–70% of their capacity. Some
hydropower plants were able to produce more energy because of the water storage
programs conducted in the year 2010 (a year with rich rains). Unfortunately, on the
Danube and on the Olt, it is impossible to store water in the context of significant
flow.
The period of drought recorded between the year 2011 and 2012, entailed the
insolvency of Hidroelectrica S.A. and the progress of ongoing civil cases within
the Bucharest Court. Unfortunately, one must consider reassessing the hydrological
forecasts, probably by taking into account, the minimum mean flows or other con-
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the five pumping stations with an overall installed capacity of 6331 MW (98.1%
of total installation capacity). Great-capacity power plants may also generate an
optimal cost per MWh, thus, leading to increased profitability for the company. The
selling of Micro Hydropower plants (MHC) will bring an infusion of about 120–150
million Euros, and it will entail a decrease in expenses for staff, maintenance, and
exploitation (of around 20 million Euros/year). Hidroelectrica S.A. must focus its
financial resources on updating the technology of the great-capacity power plants,
which have been exploited for over 30 years [55].
15.5 Conclusions and Policy Implications
Romania’s mountainous landforms favour a relatively significant hydroelectric power
potential (8000 MW). In extra-mountainous areas, there are hydropower plants,
situated only on Siret and Pruth, which provide important liquid discharge. Most
hydropower plants in Romania are distributed on mountainous rivers: Bistrita (along
with Siret and Pruth), Olt, Jiu, Arges, Lotru, Somes, Raul Mare, and so on. The
largest hydrotechnical work is the one done on the Danube (Iron Gates I, with a
potential of 2100 MW, shared with Serbia). Iron Gates I is the only hydropower
plant in Romania, which functions permanently, and that contributes to the largest
amount of hydropower.
The global climatic changes also affect Romania. For the past 25 years, drought
periods are longer and more severe, though, the mean amount of precipitations has
also increased. Unfortunately, heavy rains (100–300 mm/24 h) causing large amounts
of water within a short time span have become more frequent and more significant;
they lead inevitably, to catastrophic floods. The drought recorded in the autumn
of the year 2011, and in the spring of the year 2012, entailed a drastic reduction
in power production provided by the hydropower plants, the reason for which the
company Hidroelectrica S.A. became unable to distribute power to the beneficiaries.
Drought affected the Danube to the same extent; the river is the main hydropower
producer. In this case, Hidroelectrica S.A. was sued by a series of partners who were
no longer satisfied with the quality of the distribution. The contracts signed between
Hidroelectrica S.A., and the partners depend on the forecast of energy production in
the context of a normal hydrological year. A forecasting error may represent 10%.
The drought comprising the entire Romanian territory, entailed a drastic drop in
production: many hydropower plants produced only 60–70% of their capacity. Some
hydropower plants were able to produce more energy because of the water storage
programs conducted in the year 2010 (a year with rich rains). Unfortunately, on the
Danube and on the Olt, it is impossible to store water in the context of significant
flow.
The period of drought recorded between the year 2011 and 2012, entailed the
insolvency of Hidroelectrica S.A. and the progress of ongoing civil cases within
the Bucharest Court. Unfortunately, one must consider reassessing the hydrological
forecasts, probably by taking into account, the minimum mean flows or other con-