The REFIN Group is a consortium of Romanian companies dedicated to the energy sector, with a special focus on renewable electricity production and providing innovative, sustainable energy solutions. Each company within the group plays a unique role in the overall strategy, contributing to REFIN’s position in the renewable energy and related services sector.

The REFIN Group also includes companies in other fields, such as:

• Refin Real Estate SRL and Refin Management Project SRL, which contribute to the financial and administrative support of energy projects and the development of necessary infrastructure for expanding production and trading capacities.

Each company within the REFIN Group supports the rapid adaptation to increasing demands for green energy through independent activities in electricity production, supply, and trading. This integrated model promotes the transition to a sustainable energy system, aligned with European decarbonization and climate neutrality regulations, strengthening the REFIN Group’s position in Southeast Europe (SEE).

Long-term forecasts (2025-2035) by Balkan Energy AG highlight a sharp increase in investments in renewable energy sources (RES) and the need to enhance the flexibility of networks and power plants. In this context, the REFIN Group focuses on:

Diversifying Renewable Energy Sources and

1. Diversifying Renewable Energy Sources and Expanding Production Capacities: Through strategic investments in photovoltaic and hydroelectric plants, the REFIN companies contribute to green energy capacity growth, aligned with the European Green Deal and European Commission decarbonization commitments, reinforcing the group’s dedication to sustainability.
2. Flexibility in Operations to Respond to Market Volatility: Given the frequency of negative prices and volatility due to RES overproduction during peak hours, REFIN is preparing to adapt power plants to respond more efficiently to market needs. Operational flexibility is essential for mitigating price fluctuations and supporting the group’s economic stability.
3. Implementing Energy Storage Solutions (BESS): As SEE networks face export limitations and infrastructural constraints, storage capacities are critical for managing energy surpluses and maintaining price stability. The REFIN Group invests in developing and implementing Battery Energy Storage Systems (BESS) to balance supply and demand during low-demand periods. These systems allow the group to mitigate market volatility and leverage energy surpluses through “time-shifting” strategies and consumption optimization based on market prices.
4. Establishing Partnerships and Long-term Purchase Agreements (PPAs): To mitigate financial risks associated with negative prices and RES market volatility, the REFIN Group pursues revenue diversification strategies through long-term purchase agreements. These contracts offer financial stability and support the continuity of investments in new renewable energy capacities while shielding the group from spot market fluctuations.
5. Compliance with European Environmental Regulations and Climate Goals: Through its diverse activities in electricity production, supply, and trading, REFIN aligns with increasingly stringent environmental standards, actively contributing to climate neutrality. This ongoing adaptation to European regulations supports REFIN’s transition towards a greener, more resilient energy system, consistent with the growth forecast for the SEE and HUPX markets.

The SEE energy market analysis over the next 10 years shows that energy sector players will need to navigate infrastructure challenges and price volatility but can capitalize on the opportunities presented by RES capacity integration. Through its integrated and flexible strategy, the REFIN Group is well-positioned to seize these opportunities, making a significant contribution to the stability and sustainability of the regional energy market.

This sustainable and adaptable model supports the transition to a cleaner, more resilient energy mix, increasing investor value and reinforcing the REFIN Group’s commitment to green and sustainable energy for Southeast Europe.

This diversified operational structure enables the REFIN Group to leverage legislative and market advantages, ensuring efficient risk and opportunity management in the energy sector. Each company’s activities within the REFIN Group are conducted in full compliance with applicable regulations, including Law 123/2012, governing energy and natural gas, and Law 220/2008, which supports renewable energy production. The REFIN Group adheres to all ANRE license conditions, ensuring transparency and operational accountability.

Additionally, by operating various photovoltaic and micro-hydro plants, the REFIN Group plays an essential role in the regional transition to sustainable energy sources, actively contributing to carbon emission reduction and supporting national and European decarbonization objectives. This alignment with legislative standards not only strengthens the REFIN Group’s market position but also underscores its commitment to sustainable development and environmental responsibility.

The REFIN Group’s strategy to maintain each company with its own production units and distinct supply and trading activities ensures effective risk diversification and creates a flexible and efficient framework for quick adaptation to energy market demands. This approach enables REFIN Group to optimize resources, maximize legislative opportunities, and establish a favorable context for sustainable long-term growth.

Synergies and Benefits for REFIN Group Companies

• Diversification and Operational Flexibility: Maintaining separate production units allows for risk diversification and more efficient management of challenges specific to each local market, regulatory framework, and technical conditions. This operational flexibility allows each unit to adapt its strategies promptly to market changes or new regulations.
• Legislative Benefits: According to Art. III of Government Emergency Ordinance No. 24/2017, approved by Law No. 184/2018, production units under 3 MW benefit from a favorable legislative framework. This framework enables direct negotiation of bilateral contracts with electricity suppliers, facilitating the sale of energy and green certificates. Merging the companies could alter the legal status of these production units, leading to a loss of these legislative benefits.
• Optimization of Green Certificate Revenue: By keeping companies separate, the group can negotiate green certificate sales more effectively, considering low market liquidity. This allows optimal management of the green certificate portfolio and maximizes revenue from these support schemes.
• Staggered Acquisitions: Each production unit was acquired at different times, and merging them into a single entity would require complex, costly reorganization, potentially disrupting current operations and the long-term strategy. Maintaining separate structures ensures operational continuity and stability.
• Long-Term Partnerships and Financial Stability: REFIN Group has entered into long-term contracts (5-10 years) with interested partners, offering predictable revenue streams. These contracts are essential for financial stability and can be presented to banks for revenue guarantees/assignments. Current structures facilitate the management and monitoring of these contracts and partner relationships.
• Management and Control Efficiency: Each production unit is managed by a dedicated team, allowing for strict control over operations and quick responses to technical or commercial issues. Decentralized management leads to increased operational efficiency and decision-making, enabling rapid adaptation to market changes and optimizing each unit’s performance.

Thus, REFIN Group’s strategy of maintaining each company as an independent entity with its production units and separate supply and trading activities provides a competitive advantage in the energy sector. This structure supports risk diversification, maximizes legislative benefits, and optimizes revenue, aligning with European objectives for decarbonization and climate neutrality. The strategy also facilitates easier access to non-reimbursable funds managed by the Ministry of Energy, essential for new investments in green production capacity and energy storage solutions (BESS).

Long-Term Effects: Through this approach, REFIN Group ensures it can successfully navigate energy market challenges and capitalize on opportunities from the growing demand for renewable energy in Southeast Europe. This flexibility and sustainability focus create long-term value for investors and support Romania’s goals of actively contributing to a greener energy future.