Romania’s Energy Ministry has signed two financing agreements worth EUR 21 million with the energy producer Complexul Energetic Oltenia. The aim is to modernize the power plants at Rovinari and Isalnita, said energy minister Victor Grigorescu.

The project will be financed with money from the sale of greenhouse gas emission allowances. Romania hasn’t used the money from the sale of these allowances for years due to bureaucratic blockages and inefficiency, the minister said.

At the beginning of this year, the country almost lost the European Commission’s approval to use the money to modernize the power plants, due to unjustified delays. Starting this week, the money will be directed to the plants that most need investments, the minister added.

Energy group Complexul Energetic Oltenia was founded in 2012 following the merger of several energy companies. It currently employs 15,000 people, but plans to remain with 14,000 employees by the end of this year. The state has a majority stake in the company.

The group had losses of EUR 31 million in the first half of the year. By comparison, it posted a net profit of EUR 3 million in the same period last year.

editor@romania-insider.com

(photo source: Complexul Energetic Oltenia on Facebook)