The authorities should set by law a deadline for phasing out coal from the energy mix, says Daniel Burlan, the head manager of the troubled Romanian state-controlled coal and power group Complexul Energetic Oltenia (CEO), Economica.net reported.

He also argues that a significant financial package should be attached to this deadline.

So far, the Government submitted to the European Commission (EC) a medium-term restructuring strategy for CEO that fails to include the full closure of the coal-fired plants by as far as 2030.

The strategy stands virtually no chance to get the green light from the EC, and the Government knows it well, Greenpeace recently commented.

In an online event, CEO's head manager implied a longer-term, more committed approach is needed.

"All EU member states have these plans. Germany has a term of 2038, Poland - 2040," he said.

But he argued massive financial packages should be provided for decarbonization. He mentioned that German coal companies such as RWE or EPH receive EUR 4.35 billion in compensation (for the lost profits), EUR 4.8 billion for staff, and another EUR 40 billion in structural aid.

The restructuring plan for CEO, currently analyzed by the EC, provides for the closure of only some coal groups, with a total capacity of 1,650 MW (to be replaced by new gas groups - about 1,300 MW and photovoltaic parks - about 700 MW).

However, even in 2030, the company will still operate five coal-based groups, three in Rovinari and two in Turceni. The plan envisages EUR 2 billion aid. Some EUR 1.3 billion should come from the state budget, while the rest is expected to be secured from the EU's Modernization Fund.

(Photo: Complexul Energetic Oltenia Facebook Page)

andrei@romania-insider.com