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.