Energy has become a matter of security, economic competitiveness and, ultimately, living standards because high energy prices affect companies, reduce investment and are reflected directly or indirectly in the costs borne by citizens, acting Prime Minister and acting Energy Minister Ilie Bolojan said on July 16 at the signing of the Memorandum of Understanding between the Government of Romania and the Government of the Republic of Serbia to facilitate the exchange of information regarding the Djerdap 3 pumped-storage hydropower plant project.

“Today we are opening discussions on a possible new project. The memorandum we signed today creates the necessary framework for an exchange of information regarding the Djerdap 3 pumped-storage hydropower plant project and to understand exactly what benefits it can bring, as well as what impact it may have. We need this approach because energy has become a matter of security, economic competitiveness and, ultimately, living standards. High energy prices affect companies, reduce investment and are reflected directly or indirectly in the costs borne by citizens,” the acting head of government said.

According to him, Romania needs, at the same time, capacities which can balance the energy system when production varies.

“Pumped-storage power plants can play an important role in this equation. They can store energy when there is a surplus and make it available to the system when needed. In short, they can contribute to the stability of the grid and to more efficient use of the energy we produce,” Bolojan explained.

The interim PM believes that Djerdap 3 is a project that deserves to be analysed with full seriousness.

“For Romania, it is important that the development is compatible with the operation and production of energy of the Iron Gates I and II, to ensure the protection of river areas (…) and take into account the navigation on the Danube. Romania wants a closer cooperation with Serbia in the energy area. We are neighbours, we have joint infrastructure, we have common interests and we are confronted with many of the same challenges. It is natural to seek solutions together that increase the energy security and the competitiveness of our economies. I thank the minister and colleagues in Serbia for openness to dialogue and for cooperation. The experience of the Iron Gates show us that Romania and Serbia know how to work together on important energy projects,” Ilie Bolojan salso said.

In her turn, Serbia’s Minister of Mining and Energy, Dubravka Ðedovic Handanovic, thanked Romania for its support throughout Serbia’s EU integration process, noting that the Romanian-Serbian technical committee has held 104 working sessions, the latest in September 2025.

She said the document signed today is an important step forward in continuing bilateral cooperation – an essential pillar for energy security for citizens and both economies. The minister stressed that the Djerdap 3 project is a strategic initiative that will place the region in a more advantageous position on the Eastern European market and will integrate more renewable capacity, supporting the energy transition and a cleaner energy sector. Once built, Djerdap 3 will become the largest storage facility in this part of Europe – if not the largest in Europe. Handanovic expressed satisfaction at cooperating with Romania on this major cross-border project.

Serbia will carry out supply and technical planning for the feasibility study this year.

The Serbian official added that Djerdap 3 / Iron Gates III is being developed under the Agreement between Serbia and the United States on Strategic Cooperation in Energy, in force since March 2025. A call for projects has already been launched, with six companies registered so far.

The minister also highlighted the new cooperation initiative through the Memorandum of Understanding for constructing the Serbia – Romania gas interconnector, with a capacity of at least 1.6 billion cubic metres per year. She recalled the agreement between the national gas producers of both countries and mentioned the plan to complete, over the next ten months, a 31.6 km pipeline from Mokrin to the Romanian border, enabling Serbia to connect to the BRUA gas corridor.