Craiova put up for auction the 12-year concession for the production of electricity and thermal energy

Electrica S.A. informs investors and the capital market on the submission on March 9, 2026 of the technical and financial offer within the public tender procedure organized by the Municipality of Craiova, having as object: “Delegation by concession of the activity of producing thermal and electrical energy, based on cogeneration and/or renewable energy sources in the Municipality of Craiova”, Electrica shows in a notice sent to the Bucharest Stock Exchange.

The concession concerns a 12-year contract and involves the creation of a new thermal energy production system for the centralized network (SACET) of the municipality of Craiova, with a solution based on high-efficiency cogeneration and/or renewable energy sources. The project responds to both the city’s thermal energy needs and the energy efficiency requirements imposed by the European legislation in force (Directive 2023/1791). (auction details available in the SEAP system)

Electrica will inform the market about the final result of the procedure as soon as it is officially communicated by the contracting authority, the Municipality of Craiova, in accordance with the transparency and reporting obligations applicable to listed companies.

“This concession represents one of the most important public procurement procedures in the urban energy sector recently launched in Romania. By participating in this auction, Electrica reconfirms its strategy of expansion in energy production and its commitment to the development of the national energy system. It is a concrete step towards an integrated energy portfolio, serving both cities and large industrial consumers,” said Mr. Alexandru Chiriță, General Manager of Electrica
A 2 billion lei deal

We learn from SEAP that the “Delegation by concession of the activity of producing thermal and electrical energy, based on cogeneration and/or renewable energy sources in Craiova Municipality”, a contract put out to tender by the city hall, has an estimated value between 2 and 2.6 billion lei.

We quote further from the City Hall announcement:

“Delegation by concession of the activity of producing thermal and electrical energy, based on cogeneration and/or renewable energy sources in the Municipality of Craiova for a period of 12 years.

The contracting authority/entity intends to create a new Production System, which will provide the thermal energy needed in SACET Craiova and in this regard has substantiated the necessity and opportunity of carrying out this project.

Due to financial constraints, it is necessary to attract a private investor to create a new source of thermal energy production. In order to meet the qualification criteria as an efficient centralized heating and cooling system provided for in art. 26 of Directive 1791/2023, the technical solution proposed by the Bidder must ensure a system that uses at least the following categories: cogeneration: 80% high-efficiency cogenerated thermal energy or a combination of the following types of thermal energy entering the transmission network: energy from sources renewables, waste heat and cogeneration, where the share of energy from renewable sources is at least 10%, and the total share of energy from renewable sources, waste heat or high-efficiency cogenerated thermal energy is at least 50%.

The contracting authority/entity has decided that the only feasible option at this time is the form of delegation of the production activity within the public service of thermal energy supply to a company with 100% private share capital by concession. The delegation by concession of the activity of thermal and electrical energy production, based on cogeneration and/or renewable energy sources in the Municipality of Craiova for a period of 12 years will be carried out in accordance with the requirements of the award documentation prepared by the consultant ELSACO ESCO SRL and approved by HCL no. 450/2025”