July 21 (SeeNews) - Romanian coal-based electricity producer Complexul Energetic Oltenia (CE Oltenia) said that together with local energy provider Tinmar Energy it will build four solar parks and a gas-fired power plant with a total installed capacity of around 755 MW at an estimated overall value of about 595 million euro ($667.1 million).
The two companies have signed financing agreements for the development of four solar parks with a total installed capacity of approximately 280 MW as well as a 475 MW natural gas-fired power plant, CE Oltenia said in a press release earlier this week.
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The projects will be developed through five separate 50/50 joint-stock entities.
In addition to investments from CE Oltenia and Tinmar Energy, financing has also been secured from the EU’s Modernisation Fund, which will cover 70% of the financing needed for the solar projects and 50% of the funding required for the gas-fired plant. The solar parks are expected to be operational in 2024, and the gas-fired power plant in 2026.
The 280 MW solar parks will be built on the slag and ash warehouses in Rovinari and Turceni as well on the Pinoasa and Bohorelu landfills in southwestern Romania. The 475 MW gas-fired plant will be built within CE Oltenia’s SE Turceni lignite-fired power plant, also in southwestern Romania.
The new power generation capacities mark CE Oltenia’s transition to less polluting energy sources and restore its viability by solidifying its strategic role in Romania’s national energy system, the company said.
Earlier this week, Romania’s top oil and gas group OMV Petrom [BSE:SNP] announced that together with CE Oltenia, it is building four solar photovoltaic (PV) parks with a total capacity of some 450 MW. The eight PV parks developed by CE Oltenia with OMV Petrom and Tinmar accelerate the absorption of EU funds and Romania's access to clean energy while facilitating CE Oltenia's modernisation, energy minister Sebastian Burduja said in a social media post on Monday.
Tinmar specialises in delivering integrated utility services – electricity, petroleum and natural gas – to both industrial and household consumers.
CE Oltenia, in which the Romanian state holds a 77% stake, specialises in mining, coal-based energy production and supply, operating facilities with a combined installed capacity of 2,595 MW. The company is undergoing a restructuring process approved by the European Commission in January 2022 which is in part targeting the phase-out of lignite-based electricity production facilities.
OMV Petrom shares traded 0.54% lower at 0.55 lei ($0.12/0.11 euro) as at 1008 CET on the Bucharest Stock Exchange on Friday.
($=0.8919 euro)
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