The Romanian government has approved a major overhaul of the region's energy sector, which will see investments of around E35 billion and the formation of an electricity holding company to consolidate state-owned nuclear, thermal and hydro power generation firms, Reuters has revealed.

<p>The publication cited Varujan Vosganian, Romania&#0039;s finance and economy minister, as saying that the administration will hold a stake of between 25% and 40% in the new company, while investment fund Fondul Proprietatea will hold a 20% interest.<br /><br />According to Reuters, the remaining shares will be listed on the Bucharest stock exchange in a gradual process. The publication also cited Mr Vosganian as stating that: Such a company in the future will be a private company.<br /><br />The company looks set to become a major force within the Romanian, and indeed European energy sector as, according to Reuters, the region&#0039;s prime minister, Calin Tariceanu, has likened the firm to Czech utility CEZ and its Italian counterpart Enel. <br /><br />Reuters said that Romania is due to release further information about the new energy entity, which would combine Romania&#0039;s power production, distribution and transportation activities, in 30 days.<br /><br />According to Reuters, Romania is hoping to make its mark on the European energy sector, after its recent accession to the EU. The region will implement this strategy through a focus on renewable energy projects and improved efficiency. <br /><br />Romania&#0039;s energy sector overhaul is also intended to double its power output to around 100TWh by 2020, a figure that exceeds estimated domestic consumption requirements and would therefore allow for power exports, said Reuters, citing Mr Vosganian.</p>