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Europe’s Drought Crisis Slashes Romania’s Hydropower to Record Lows in 2025

A historic dry spell cripples Europe’s hydropower—yet profits rise. Can desalination save the continent’s energy future? The numbers tell a stark story.

In this image there is a water plant.
In this image there is a water plant.

Europe’s Drought Crisis Slashes Romania’s Hydropower to Record Lows in 2025

Romania's state-owned hydropower operator, Hidroelectrica, anticipates record-low output in 2025 due to severe drought, potentially requiring European countries to invest in desalination. Despite having 188 hydroelectric plants with a total capacity of 6.4 GW and a wind farm of 108 MW, the company projects an annual profit of EUR 590 million for 2025.

Hidroelectrica's output in 2025 is expected to be just above 11 TWh, significantly lower than in 2012 when the company faced insolvency. This decline is attributed to decreasing water levels in rivers, lakes, and reservoirs across the region, impacting European hydroelectric projects. Recent years have seen extreme droughts in European countries like Serbia, Bosnia and Herzegovina, Montenegro, and North Macedonia, further reducing European hydropower production.

Despite the challenges, Hidroelectrica's water reserves are projected to increase slightly to around 73% in 2025 from 64% in 2024. The company has also expanded its customer base, surpassing one million household and non-household customers in the end-consumer supply market.

Hidroelectrica's record-low output in 2025 underscores the urgent need for European countries to diversify their energy sources and invest in alternative solutions, such as desalination, to mitigate the impacts of drought on European hydroelectric production.

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