Romania's Government signed the memorandum for the restructuring of state-owned coal and power group CE Oltenia (CEO) under a five-year program that involves some EUR 2 billion of aid from both state and the European Union's decarbonization program.

The memorandum involves EUR 1.33 bln of state aid, out of which more than EUR 250 mln was already extended as a rescue loan that the company could not return, Economica.net reported.

The company will use the state aid for financing the purchase of CO2 certificates over the period when the group is replacing its traditional coal-fired power unit with more modern gas-fired units and renewable energy capacities.

The European Commission has invited the CEO to launch the notification procedure, the final stage of the process of approving the restructuring and decarbonization plan, a document sent to Brussels on August 31, 2020, according to a press release issued by Agerpres on Tuesday. CEO expects EUR 771 mln grants from European Union funds under the Modernization Fund - mechanism 10d.

CEO is the second-biggest producer of electricity in Romania, with a market share of 22%.

andrei@romania-insider.com

(Photo source: Facebook/Complexul Energetic Oltenia)