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Romania: Court suspends environmental permit for nearly completed Rastolița hydropower power plant

The Cluj-Napoca Court of Appeal has issued a temporary suspension of the environmental approval for Hidroelectrica’s Rastolița hydropower project, despite the facility being over 90% complete and scheduled to begin operations in November. The ruling is not yet final and is part of an ongoing legal dispute.

Romania’s Minister of Energy, Sebastian Burduja, commented on the development, noting that the broader case seeking annulment of the environmental permit is still under review, with a hearing set for late June. He expressed confidence that the government would prevail, enabling the project to move forward without further interruption.

Hidroelectrica has faced multiple legal challenges between 2019 and 2024 from environmental organizations such as Declic and Bankwatch. These proceedings have caused repeated delays in the completion of the Rastolița plant. According to official estimates, the postponements have led to an annual loss of approximately 317 GWh in electricity production. This translates into about €190 million in missed revenues for Hidroelectrica and an additional €253 million in costs for the Romanian Government, which was forced to compensate for the shortfall through expensive electricity imports.

The total estimated economic impact of the delays now stands at roughly €443 million, highlighting the significant consequences of prolonged legal and regulatory uncertainty in the energy sector.

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