RO coal and power complex CEO uses state aid to buy expensive CO2 certificates

Romanian coal and power complex CE Oltenia, under insolvency, purchased in April 2.4 million CO2 certificates at prices between EUR 43.5 and EUR 44.5 per certificate, Economica.net reported.

Thus, the company has already spent over EUR 100 mln of the EUR 241 mln state aid recently received from the Government. CE Oltenia purchased the certificates to meet the requirements generated by last year's electricity production.

The price is almost double the one paid by another Romanian power producer, Elcen, which paid EUR 23 per certificate in January-February. However, at that time, CE Oltenia did not have money to avoid the predictable rally in the price of certificates.

Even now, the company has received state support under unclear circumstances from the Government, which has not waited for the green light from the European Commission for the bigger EUR 1.3 billion restructuring plan and extended in advance EUR 241 mln.

Greenpeace had already objected to a planned smaller "bridge" loan discussed in March. After the EUR 241 mln aid extended in April, Bankwatch and ClientEarth notified the European Commission against the Government's plans.

"Instead of setting a date for the phasing out of coal and contributing to the company's transition to renewable energy production, the aid will allow CE Oltenia to continue burning fossil fuels by upgrading coal-fired facilities and replacing coal-based capacities with fossil fuel power plants," the two NGOs said in a press release.

(Photo courtesy of Greenpeace Romania)