Electricity

CE Oltenia needs EUR 2 billion in aid for decarbonization plan

CE Oltenia needs EUR 2 billion aid to implement decarbonization plan

Photo: Karsten Klante from Pixabay

Published

November 16, 2020

Country

Comments

0

Share

Published:

November 16, 2020

Country:

Comments:

0

Share

Romania’s second-biggest power producer Complexul Energetic Oltenia (CE Oltenia) will need EUR 2 billion to fund its 2021-2026 restructuring and decarbonization plan.

EUR 1.3 billion is to come from the state budget, while the rest is expected to be secured from the EU’s Modernization Fund, local media reported.

The 2021-2026 plan envisages the reduction of CO2 emissions by 38%

The restructuring plan of the Oltenia Energy Complex envisages the reduction of CO2 emissions by 38%, shutdown of four out of 12 coal-fired units, and the construction of new capacities with an installed capacity of 2 GW. Furthermore, the utility intends to build eight solar power plants of 700 MW in the three coal complexes that should be closed. The company now operates lignite mines and 3.24 GW in coal-fired power plants.

EUR 1.3 billion from the package is for CO2 certificates

The company is one of the largest employers in the country, with over 12,500 workers, of which 4,000 will retire in the next four years, according to Economy Minister Virgil Popescu, Economica.net reported.

Out of EUR 1.3 billion from the state budget, CE Oltenia has already received a EUR 251 million loan, approved by the European Commission, and spent it to purchase CO2 certificates for 2019. The rest of state aid is also intended for the allowances from 2021 to 2026.

Projects for new power plants worth EUR 711 million are planned to be covered via the Modernization Fund

The company counts on EUR 711 million from the allocations that Romania will receive from the European Union’s Modernization Fund. The mechanism is financed from the auctioning of CO2 certificates under the EU’s Emissions Trading System (EU ETS). The photovoltaic and gas-fired power plant projects will be submitted to the government, the plan shows.

The company projects positive annual cash flow for the five years through 2030 if the package is approved.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

EPS proposes strategic reserve mechanism for the power generation to be introduced

EPS wants to use coal power plants as strategic reserve

20 October 2021 - The supervisory board of Elektroprivreda Srbije has sent an initiative to the ministry of energy to introduce a strategic reserve mechanism.

Romania to triple its solar capacity to 4.25 GW by 2030

Romania to triple its solar capacity to 4.25 GW by 2030

20 October 2021 - Solar photovoltaic capacity is projected to triple during 2021-2030, from 1.39 GW in 2020 to 4.25 GW in 2030.

Kosovo Supreme Court three Kelag small hydropower plants must be shut down belaja ulrich eichelmann

Kosovo* Supreme Court: Kelag’s three small hydropower plants must be shut down

19 October 2021 - The facilities are owned by KelKos, a subsidiary of Austria-based Kelag-Kärntner Elektrizitäts and Kelag International.

Timmermans place for gas nuclear energy EU mix

Timmermans: There is place for gas, nuclear energy in EU energy mix

18 October 2021 - The European Commission's Frans Timmermans said gas has a future in the energy mix and that EU has nothing against nuclear energy