Romania's second largest electricity producer CE Oltenia will close, over the next decade, lignite burning power plants with a total capacity of 945 MW and replace them with 800 MW gas fired units, if the European Commission green lights the plans drafted by CE Oltenia and endorsed by the Romanian Government, Economica.net reported.

Under the plan, which hasn’t been made public yet, Romanian end-users will pay a total of RON 10.5 billion (EUR 2.2 bln) worth of special taxes over the coming decade, to be granted as state aid to CE Oltenia for developing the new capacities. The scheme could lead to an 8% increase in the price of electricity paid by household consumers, in 2020, followed by a 4.8% increase in 2021 and another 4.3% increase in 2022, according to the scheme.

The first new gas fired unit (200 MW) at CE Oltenia is planned to be commissioned in 2024 to replace a 400 MW coal fired unit which will shut down in 2023, at Craiova, one of the three locations operated by CE Oltenia (Craiova, Isalnita and Rovinari). Two units with total capacity of 645 MW will operate on the capacity market (a regime allowing the company to charge higher prices in exchange for keeping the units operational and ready to start when needed) from 2020 to 2024 when they will be replaced with two units with a total installed capacity of 600MW.

editor@romania-insider.com

(Photo source: Facebook/Complexul Energetic Oltenia)