Romanian coal and power group CE Oltenia needs EUR 2 bln grants for restructuring
The restructuring plan drafted by Romanian coal and power group CE Oltenia envisages EUR 1.33 billion grants from the national budget and EUR 771 million grants from European Union funds under the Modernization Fund - mechanism 10d of the European EU-ETS directive, according to economy and energy minister Virgil Popescu.
Out of the EUR 1.33 bln expected from the state, EUR 252 mln was already extended as a rescue aid for the company to pay for the CO2 certificates related to last year's electricity production. The company needs over EUR 1 bln more from the state budget to finance the purchase of CO2 certificates during the restructuring period.
The company expects to see 4,000 of its 12,500 employees retiring over the coming four years, according to Economica.net.
The restructuring plan envisages the development of gas-fired power plants and PV parks.
Upon completing the restructuring strategy, the company expects to register a positive annual cash flow from 2026.
Starting with 2026, the company will ensure its long-term economic viability, with an adequate remuneration of the capital used, in line with the industry, according to the restructuring plan.
The group plans to develop new production units with a cumulative installed capacity of about 2,000 MW. It will develop eight PV parks in Turceni, Rovinari, and Isalnita, with a total installed capacity of about 700 MW. It will also rehabilitate or refurbish and modernize the micro-hydro power plant in Turceni with an installed capacity of 10 MW. It will also develop new natural gas capacities with a total installed capacity of about 1,300 MW in Turceni and Isalnita.
CE 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 power generated by renewable energy sources (hydro, wind) drops, CE Oltenia covers 30% of the local production.
(Photo source: Facebook/Complexul Energetic Oltenia)