The restructuring and decarbonization plan of EC Oltenia was conceived and structured over a period of five years, during which the company must become viable by streamlining operations and by switching to renewable and less polluting resources. Romanian Government has signed the Memorandum for the restructuring of state-owned coal-based electricity producer Energy Complex (EC) Oltenia under a five-year program that involves some 2 billion euros of support from both state and the European Union’s decarbonization program.
The memorandum involves 1.33 billion euros of state aid, out of which 250 million was already extended as a rescue loan that the company could not return. The company will use the state aid for financing the purchase of CO2 certificates over the period when the group is replacing its traditional coal-fired power unit with more modern gas-fired units and renewable energy capacities.
The company said that is near to obtain the approval of the European Commission (EC) for its restructuring and decarbonizing plan worth 3.5 billion euros. It has launched the notification procedure, which is the final stage of the evaluation process needed in order to get the five-year plan (2021-2026) approved by the EC. The plan was sent to the EC for approval in August.