Bucharest-based thermal energy and electricity producer ELCEN announced its exit from insolvency after a Bucharest court ruled to close insolvency proceedings started in 2016.
The statement from the company said that it has fully covered its payment obligations under its reorganization plan and paid current due debt. The exit from insolvency paves the way towards accessing non-refundable European funds or other financing from national and international institutions to increase the efficiency of its cogeneration plants.
In the coming period, ELCEN plans to focus on the implementation of major investment projects, such as the construction of new high-efficiency cogeneration plants. The company plans to build natural gas and hydrogen fueled high-efficiency cogeneration plant within CET Bucuresti Sud, with 600 MW output. It also aims to modernize and increase the efficiency of its four existing cogeneration plants, with combined capacity of 586.2 MW.
In November 2022, the Romanian Government increased Bucharest municipality’s debt ceiling by some 100 million euros so that Termoenergetica, the company managing the capital’s heating network, could pay its debt to ELCEN, which was paid in full a month later.
Established in 2002, ELCEN produces 40 % of Romania’s and 90 % of Bucharest’s thermal energy. The Romanian state holds a 97.51 % stake in the company through the Ministry of Energy.
