Under the guidance of CITR, leader of the insolvency market in Romania and part of Impetum Group, Arad Thermal Power Plant (CET Arad) successfully continues its reorganization strategy, accessing a substantial financing of approximately EUR 8 million, offered by AOT Energy, a global energy trader. This amount represents the maximum capital that CET can unlock to finance the raw material needed for the operational activity in 2020. CET Arad has already benefited from EUR 3 million to purchase gas necessary to produce heat and electricity for January, in the near future following to benefit from other approximately EUR 2.5 million for the guarantees related to the lease agreement for 14 new heat engines and for the production of electricity and heat related to these engines.
Financing is part of the strategic plan developed by CET Arad together with CITR and the main creditors to regain company’s profitability and is the second important stage completed in four months. CET Arad, previously focused on thermal energy, aims to reach, according to the strategy currently being implemented, revenues from electricity sales of 70% of its turnover.
“We are glad to see the evolution of CET Arad in only one year since it resumed its activity and after one year of break, which it recovered on fast forward. The favourable point reached by the company proves that, by support and guidance, an insolvent business has all chances to regain its market value,” said Silvana Sermer, Managing Partner, CITR Timis.
The 20-year expertise of CITR in working with energy companies has been a driver in the approach of obtaining investments together with CET Arad, and the time and energy spared by streamlining the process will be focused on improving the operational and production processes,” Adrian Lotrean, Senior Partner CITR, coordinator of energy projects, mentioned.
The main benefits of the investment are optimization of the production capacity of CET Arad, improving the time of reaction, efficiency and, especially, increasing the flexibility of the company, in order to obtain accreditation for the provision of balancing services in the National Power System (NPS).
At the end of last year, also under CITR guidance, CET Arad made an investment of EUR 500,000 from own sources, to upgrade the electricity and heat turbine used, investment that has already passed the technical tests and operates optimally. As part of the strategy of reorganization and accreditation for the provision of balancing services in the NPS, CET Arad plans to realize an aggregate unit, consisting of generating modules equipped with heat engines that operate in high-efficiency cogeneration, the state-of-the-art heat engines having a total installed electrical power of 21 MW, working together with a 2 MW storage unit with Lithium-Ion batteries.
The new aggregate unit will ensure a reduction of the specific fuel consumption and implicitly the reduction of the released pollutants, also ensuring the supply of heat to SACET Arad at prices 10% lower than at present, throughout the year.
CITR manages almost 20 energy companies throughout the country, including CET Oradea, CET Arad, CET Palas Constanta, RAFO and, more recently, it has been appointed judicial liquidator of RADET Bucharest.