RWE Power has signed an agreement with Slovenia's largest power producer, state-owned HSE, to cooperate on hydro power projects in Macedonia.

The two companies signed a memorandum of understanding on the joint development of projects, especially in the area of electricity generation, in Macedonia and Slovenia.

As a first step, HSE and RWE Power have agreed to jointly express interest in the construction and operation of three large hydro power projects in Macedonia.

HSE is a partner with a very good reputation in the whole region. We are convinced that the agreed cooperation will be to the benefit of both parties, said Jan Zilius, CEO of RWE Power. It is the aim of RWE to build up a balanced portfolio of power production and electricity distribution in the region.

Austrian utility Kelag will also benefit from the agreed cooperation between HSE and RWE, the German utility said. Kelag is a minority shareholding of RWE Energy and has extensive experience in the hydro power business.