The state-owned coal and power group CE Oltenia will receive an aid package including grants, capital injection and guarantees for bank loans from the Government under the restructuring plan already approved by the European Commission.

The plan is aimed at shifting the production base from coal to natural gas and renewable resources.

A Government decision with this end was endorsed on March 10.

Thus, the Government will extend RON 2.675 bln (EUR 535 mln) as a grant to help the company pay for the CO2 certificates related to this year’s energy production, according to Economica.net.

The company will also receive EUR 180 mln as a capital increase and will be allowed to borrow EUR 195.8 mln 100% covered by state guarantees.

According to the restructuring plan, the total amount of grants that the company can receive by 2025 stands at about EUR 1.1 bln to finance the purchase of emission certificates. A EUR 214 mln grant was extended by the Government with this aim last year.

CE Oltenia is the main energy producer in Romania; it uses indigenous lignite. Its market share is about 24% and contributes significantly to the national energy security, mainly in extreme moments of prolonged drought or in periods winter with low temperatures, periods in which the contribution of coal-fired power plants in the production structure increased to almost 35%, the Government explains in the document endorsed on March 10.

(Photo courtesy of Greenpeace Romania)

andrei@romania-insider.com