We report on resonant inelastic X-ray scattering measurements on Na 0.7 CoO 2 and on the corresponding hydrated compound Na 0.35 CoO 2 ·yH 2 O at the Co K-edge. The spectra exhibit a single excitation at 10eV energy transfer which resonates at the energy of the Co K white line. The experimental results are analyzed within the linear muffin-tin orbital approach and compared to the calculated electronic density of states and optical conductivity spectra. The poor agreement between calculations and experiment is attributed to effective screening effects from electrons in the Fermi sea. The 10eV feature can be tentatively attributed to a charge transfer excited state, or more likely to a damped plasmon mode.