Electricity

EU conditions EUR 251 million state aid to coal, power utility CE Oltenia

clean hydrogen

Photo: BGEN

Published

February 26, 2020

Country

Comments

comments icon

0

Share

Published:

February 26, 2020

Country:

Comments:

comments icon

0

Share

The European Commission has approved Romania’s plans to grant a EUR 251 million loan to second-biggest power producer Complexul Energetic Oltenia (CE Oltenia) but with strict conditions.

The Romanian government has defined a plan to help Complexul Energetic Oltenia (CE Oltenia), coal-based utility trapped in a financial squeeze for years. A public loan warrants approval from the European Union’s executive arm.

The loan will either be fully repaid or CE Oltenia will undertake a comprehensive restructuring in order to return to viability in the long term or be liquidated

It has approved, under EU state aid rules, Romania’s plans to grant a EUR 251 million temporary loan to Romanian state-owned lignite miner and power producer CE Oltenia, which is currently experiencing financial difficulties, according to a press release from the commission.

CE Oltenia has 3.2 GW in electricity capacity. The commission ruled the loan is specifically “for the company’s well identified liquidity needs.”

Minister Virgil Popescu said it is impossible for CE Oltenia to repay the money

Furthermore, Romania committed to ensuring that, after six months, the loan will either be fully repaid, or CE Oltenia would undertake a comprehensive restructuring in order to return to viability in the long term or be liquidated, commissioners said.

Romania-insider reported minister of economy and energy Virgil Popescu said it is impossible for CE Oltenia to repay the money.

He added the utility would shut down 1.3 GW coal-fired power plant capacity by 2026 and replace them with gas facilities of 1.45 GW and a wind farm.

Saving 13,000 jobs

The regulators also found the aid would serve common interest.

The loan will mitigate the risk of an insolvency process, which would lead to the potential loss of 13,000 jobs in a region already characterized by relatively high unemployment levels, the commission said.

It stressed the state aid decision doesn’t challenge the need for Romania to meet its legal obligations in terms of air quality and that it doesn’t imply the EU recommends the use of lignite as a fuel, given its negative impact on air quality and climate.

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

Share coal power Finland nearly zero cogeneration plant shuts down

Share of coal power in Finland nearly zero as cogeneration plant shuts down

03 April 2025 - The now closed Salmisaari coal plant accounted for just 0.8% of the electricity mix in Finland together with three remaining ones

solar nuclear power prices europe eurelectric

Solar, nuclear lower Europe’s power prices by 30% in March

03 April 2025 - Solar broke a record in power generation in March for the third consecutive month, making up more than 10% of Europe’s electricity mix, Eurelectric said

PPC announces 5.8 billion plan for Western Macedonia, focused on photovoltaics, storage and data centers

PPC plans EUR 5.8 billion makeover of Western Macedonia coal region, including data centers

03 April 2025 - PPC presented a EUR 5.8 billion investment plan for the coal region of Western Macedonia in northern Greece

Eurowind Energy virtual PPA Romania automotive manufacturer

Eurowind Energy signs virtual PPA in Romania with automotive manufacturer

03 April 2025 - Autoliv contracted the supply of electricity from a wind park that Eurowind Energy built in Romania and Alight's solar project in Finland