Renewables

CE Oltenia, OMV Petrom to build four PV plants through JVs

CE Oltenia OMV Petrom four PV plants JVs

Photo: Darmau on Unsplash

Published

October 3, 2022

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Published:

October 3, 2022

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OMV Petrom and Complexul Energetic Oltenia said they would build four photovoltaic parks with a combined capacity of 450 MW at former coal mining locations using EU funds. OMV Petrom has a 2030 target of 1 GW in photovoltaics.

Romania’s ailing coal and power producer CE Oltenia agreed with fuel refiner and distributor OMV Petrom to develop and install solar power plants worth EUR 400 million through joint ventures with equal ownership. Both fossil fuel companies have developed plans for a massive switch toward green energy.

The four photovoltaic units with a total capacity of 450 MW are envisaged to be built at the state-owned utility’s former coal mining sites. CE Oltenia, which is being restructured, picked OMV Petrom as a partner last December. The deal is the result of long negotiations since the initial agreement.

Solar power plant projects rely on grants from Modernisation Fund

The two firms said the planned solar power plants are equivalent to 30% of Romania’s current capacity in the sector. They added that 70% of the expenses would be covered from the Modernisation Fund. The European Union’s mechanism redirects money paid for carbon dioxide emission certificates to ten member countries.

CE Oltenia has just applied for EUR 255 million for its gas-fired CHP plant project

CE Oltenia is being kept afloat with a EUR 2.66 billion state aid package. It also counts on projects from the National Recovery and Resilience Plan (NRRP or PNRR). It has just applied for EUR 255 million grants for a gas-fired combined heat and power plant with a capacity of 295 MW. The investment is estimated at EUR 323 million in total.

CE Oltenia, OMV Petrom to buy electricity produced by their subsidiaries’ PV units

The photovoltaic projects with OMV Petrom are intended to be built in Ișalnița, Tismana, Roșia and Rovinari by 2024, according to the announcement. The two partners said they would buy the electricity.

OMV Petrom aims to increase its solar power capacity, including through partnerships, to 1 GW by 2030. OMV from Austria holds 51% in the subsidiary, while Romania’s Ministry of Energy controls 20.6%.

CE Oltenia has nine coal-fired thermal power plants with 2.6 GW in total. The ministry owns 77% of the company and Fondul Proprietatea has 21.5%. The company has more than 11,000 employees.

Romania has set 2032 as its coal exit deadline.

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