Small hydropower plants are a niche but attractive asset in Romania. They produce renewable energy with long technical lifetimes, and many existing plants are owned by private entrepreneurs who may be open to a sale. At the same time, hydropower has specific risks that require careful due diligence.
1. Water and environmental permits
A hydropower plant can only operate with a valid water management permit issued by the Romanian water authority (Apele Române), which sets the conditions for using the river, including the minimum flow that must always remain in the riverbed. Check that the permit is valid, issued to the company you are buying and compatible with the plant’s actual operation.
Many rivers are in protected areas, including Natura 2000 sites. Environmental conditions can limit production or future upgrades, so they must be reviewed early.
2. Flow data and production history
Production depends on the water available. Ask for several years of monthly production data and compare them with hydrological data for the river. Pay attention to dry years: an investment case should work in an average year, not only in a wet one.
3. Condition of the equipment
Turbines, generators, penstocks, intake structures and control systems should be inspected by an independent technical expert. The age of the equipment, maintenance records and the cost of planned refurbishments directly affect the price.
4. Land and access rights
Hydropower plants often use different types of land: private plots, public land along the river and access roads. Check the land book registrations, concessions or building rights and their duration compared with the expected lifetime of the plant.
5. Licences, grid and revenues
- production licence from ANRE, where required by the capacity of the plant;
- grid connection contract and the condition of the connection infrastructure;
- how the energy is sold and, for older plants, any support received under the green certificate scheme and its remaining duration;
- operating costs: staff, maintenance, insurance and taxes.
6. Company or asset
Most small hydro plants are owned by a dedicated company. A share deal keeps permits and contracts in place, but requires full legal and tax due diligence on the company itself.
We assist investors in buying and selling hydropower plants in Romania, coordinating technical, legal and environmental checks. Contact us to discuss available opportunities.
This article is general information and is not legal, tax or investment advice.