Greenpeace Romania warns that the European Commission (EC) will not approve the restructuring plan of the coal and power energy complex CE Oltenia as drafted by the Government and stresses that the bridge loan prepared by the Government will only complicate the situation.

Instead, the Government should develop a realistic plan including a clear deadline for discontinuing coal use, plans to replace the coal-fired plants, and a broader strategy to mitigate the social impact of the green conversion using EU funds.

The restructuring strategy, as drafted by the Government, breaches EU principles and will result in 28% higher CO2 emission in 2030 (compared to 2020), Greenpeace Romania argues.

Furthermore, the bridge loan contemplated by the Government these days and aimed at rescuing CE Oltenia should be extended "at market conditions" in order not to be a state aid - hence needing the European Commission's prior approval. But the market conditions in the case of insolvent CE Oltenia result in an interest rate that the Government is not likely to charge to CE Oltenia, Greenpeace Romania implied.

CE Oltenia carried efforts to demonstrate its economic viability by signing long-term contracts on the market and reaching agreements with big energy consumers (such as Alro).

The Government wants to help the company with a EUR 1.3 bln restructuring aid and submitted a restructuring plan to the European Commission for endorsement. The preliminary review, published in March, was not particularly encouraging - and yet the Government expressed more recently its intentions to help the company buy EUR 250 mln worth of CO2 certificates by the end of April.

andrei@romania-insider.com

(Photo source: Greenpeace Romania)