CE Oltenia to Receive Aid Money from the Government

Government approved an Emergency Ordinance under which CE Oltenia will receive aid money for saving the coal and power group.

At the proposal of the Ministry of Economy, Energy and Business Environment, the Government of Romania approved the Emergency Ordinance under which coal and power group CE Oltenia receives RON 1.2 billion to purchase CO₂ allowances for 2019.

In this regard, a Memorandum was first approved, on December 30, 2019, which provides for the action plan necessary to purchase the CO2 allowances, with the subject:

1) Empowerment of the Ministry of Finance to grant a positive opinion in principle on the possibility to grant a loan from Treasury worth RON 1,200 million to the coal and power group CE Oltenia, in the form of rescue aid after taking the steps provided by the applicable legislation on state aids and after obtaining the authorization decision from the European Commission;

2) Approval to submit the documentation of pre-notification and notification to the European Commission on Romania’s rescue aid proposal for CE Oltenia, which will either repay the loan granted within 6 months of granting or submit a Restructuring Program that the Ministry of Economy, Energy and Business Environment will notify to the European Commission in order to obtain a state aid for restructuring.

Based on the Memorandum, the Ministry of Economy, Energy and Business Environment on January 16, 2019 submitted to the Competition Council the prenotification documentation to the European Commission on Romania’s rescue aid proposal for CE Oltenia.

Granting the state aid will allow the company to continue its activity, while implementing an ambitious program of decarbonization and restructuring leading to the diversification of company’s energy mix, by implementing projects for switching from coal to gas and renewable energy sources.

According to the commitments assumed, CEO will need to consider the following major investments:

• Construction of three photovoltaic power plants with a total installed power of around 300 MW on the closed slag and ash deposits related to Rovinari, Turceni and Isalnita power plants;
• Construction of a new gas-fired cogeneration unit of 200 MW in SE Craiova; Construction of a gas-fired unit of 400 MW in SE Turceni;
• Construction of 2 gas-fired units of 400 MW in SE Isalnita;
• Streamlining of exploitation and production activities.