Hidroelectrica wins €8.7 million Modernization Fund grant for 64 MW/256 MWh battery storage at Porțile de Fier II

Romania’s electricity producer Hidroelectrica has secured a major boost for energy storage development, signing an €8.7 million grant agreement through the EU’s Modernization Fund. The support is intended to accelerate one of the company’s most advanced battery projects to date—an upgrade that investors are likely to view as both a grid-stability play and a step toward meeting the operational demands of a power system with rising renewable output.

Grant backs Hidroelectrica’s flagship battery project

The financing will support the development of the battery storage facility planned at [[PRRS_LINK_1]]. Hidroelectrica estimates the overall investment at around €62 million, covering installation of a storage system with capacity of 64 MW / 256 MWh.

Integration strategy aims to cut costs and speed deployment

Rather than treating storage as a standalone asset, Hidroelectrica plans to integrate the batteries directly with existing hydropower infrastructure and available grid connections. The company says this approach should reduce implementation costs and help shorten deployment timelines.

The project is also expected to enhance operational flexibility and strengthen stability across Romania’s electricity system—capabilities that become increasingly valuable as variable renewable generation grows.

Balancing renewables and providing grid services

Hidroelectrica said the facility will play an important role in balancing supply and demand, particularly as renewables take up a larger share of generation. Energy storage, the company noted, is becoming more important for managing variability in production and ensuring reliable system operation.

Management emphasized that investments like this are now essential due to the need for more advanced balancing tools in a power system with increasing renewable penetration. The design is intended to support frequency regulation services as well as improved system responsiveness.

Why it matters for Romania’s decarbonisation and grid modernisation

With more than 6.3 GW of installed hydropower capacity—alongside additional wind assets—Hidroelectrica remains one of Romania’s key energy producers. The company positions this battery project as part of its broader role in decarbonisation and grid modernisation efforts, where enhanced balancing capabilities can help maintain reliability while integrating cleaner generation.