Romania: Grants for EC Oltenia restructuring needed13. November 2020. / SEE Energy News
The restructuring plan drafted by state-owned coal-fired electricity producer Energy Complex (EC) Oltenia envisages 1.33 billion euros in grants from the state budget and 771 million euros in grants from EU funds under the Modernization Fund – mechanism 10d of the European EU-ETS directive, said Romanian Minister of Economy and Energy Virgil Popescu.
Out of the 1.33 billion euros expected from the state, 252 million euros was already extended as a rescue aid for the company in order to pay for the CO2 certificates related to last year’s electricity production. The company needs over a billion euros more from the state budget to finance the purchase of CO2 certificates during the restructuring period.
Upon completing the restructuring strategy, the company expects to register a positive annual cash flow from 2026. Starting with 2026, EC Oltenia is expected to ensure its long-term economic viability.
The company plans to develop new production units with combined installed capacity of about 2,000 MW. It will develop eight solar power plants in Turceni, Rovinari, and Isalnita, with a total installed capacity of about 700 MW. It will also rehabilitate and modernize the small hydropower plant in Turceni with an installed capacity of 10 MW, and develop new natural gas-fired capacities with a total installed capacity of about 1,300 MW in Turceni and Isalnita.
EC Oltenia is an essential component of Romania’s energy system as it produces over 20 % of the country’s electricity. In peak periods when the amount of electricity generated by renewable energy sources drops, EC Oltenia covers about 30 % of domestic production.
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