February 6 (SeeNews) - Romania’s energy ministry said on Monday that state-owned lignite-based electricity producer Complexul Energetic Oltenia (CE Oltenia) will be granted 453.5 million lei ($101.2 million/92.5 million euro) in state aid to finance purchases of greenhouse gas emission certificates in 2023.
The funds will be delivered as a grant following the European Commission’s (EC) approval of CE Oltenia’s restructuring plan, Romaia’s energy ministry said in a draft bill published for public debate.
The financing will be entirely secured from the state budget, through the energy ministry.
CE Oltenia has so far been the recipient of state aid restructuring grants totalling 776.4 million euro in 2021 and 2022.
CE Oltenia’s restructuring plan was approved by the EC at the beginning of 2022 and is in part targeting the phase-out of lignite-based electricity production facilities. The plan includes the construction of eight photovoltaic parks with a total installed capacity of 735 MW and two gas-fired production capacities of a cumulative 1,325 MW, CE Oltenia said in a press release in April 2022.
In January 2022, the EC approved Romania’s plans to grant CE Oltenia restructuring aid for up to 2.66 billion euro in order to finance its restructuring plan and restore its long-term viability.
In December, Romania’s government said it would postpone the closure of two coal-fired power plants operated by CE Oltenia, with a total capacity of 660 MW and their associate coal mines until October 1, 2023 to avoid jeopardizing energy supply in the country.
(1 euro=4.9036 lei)
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