Romania’s Energy Ministry, local thermal electricity producer Complexul Energetic Oltenia and Chinese group China Huadian could sign the contract for the construction of a new thermal power plant worth EUR 1 billion by the end of the year, said Energy Minister Andrei Gerea.

The Chinese group, which would build the power plant in Rovinari, where Complexul Energetic Oltenia operates, has asked for certain state guarantees. This is the biggest obstacle in the negotiations, as state guarantees are not an accepted practice in the European Union, reports local Economica.net.

Without explicit mention, the Minister hinted that the guarantees required by the Chinese group refer to a guaranteed minimum sale price for the energy produced in the thermal power plant. Chinese companies need these guarantees, as this is a requirement of the Chinese Government.

“What they want is not possible in Europe, but we’ll find a satisfactory solution for everybody,” the Minister said.

editor@romania-insider.com