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10 September 2007 - The Romanian government has approved a major overhaul of the region's energy sector, which will see investments of around €35bn ($48bn) and the formation of an electricity holding company to consolidate state-owned nuclear, thermal and hydro power generation firms, Reuters has revealed.
The publication cited Varujan Vosganian, Romania's finance and economy minister, as saying that the administration will hold a stake of between 25 per cent and 40 per cent in the new company, while investment fund Fondul Proprietatea will hold a 20 per cent interest.
According to Reuters, the remaining shares will be listed on the Bucharest stock exchange in a gradual process. The publication also cited Mr Vosganian as stating that: "Such a company in the future will be a private company."
The company looks set to become a major force within the Romanian, and indeed European energy sector as, according to Reuters, the region's prime minister, Calin Tariceanu, has likened the firm to Czech utility CEZ and its Italian counterpart Enel.
Reuters said that Romania is due to release further information about the new energy entity, which would combine Romania's power production, distribution and transportation activities, in 30 days.
According to Reuters, Romania is hoping to make its mark on the European energy sector, after its recent accession to the EU. The region will implement this strategy through a focus on renewable energy projects and improved efficiency.
Romania's energy sector overhaul is also intended to double its power output to around 100 TWh by 2020, a figure that exceeds estimated domestic consumption requirements and would therefore allow for power exports, said Reuters, citing Mr Vosganian.
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