Hydro Rein strengthens focus and initiates cost reduction program
Hydro Rein is implementing measures to strengthen focus and competitiveness, targeting annual cost reductions of around USD 12 million. A comprehensive review has now been launched and is expected to be completed by the end of the fourth quarter of 2025.
"While the long-term fundamentals for the renewables industry remain strong, we cannot ignore that bringing new power to the system has never been more challenging. Permitting processes are taking longer and development has become more costly. This comes on top of challenging market conditions for our operating assets, with lower power prices and more grid constraints. To preserve Hydro Rein's ability to succeed in this environment, we need to adjust our business model," says Hydro Rein CEO Olivier Girardot.
The company already implemented significant improvement programs in 2025, targeting both lower costs and increased activity monetization. The new measures include exiting behind-the-meter markets (Energy Solutions), refocusing development activities, and downsizing the organization. As a first step, Hydro Rein will introduce a voluntary severance program. If required, a formal redundancy program will follow.
"We have an amazing organization with extremely talented people. They have done a tremendous job taking Hydro Rein to where it is today. However, we have to adjust to our new reality. By acting decisively now, we preserve Hydro Rein's strategic flexibility and ability to deliver long-term value," says Girardot.