The European Commission has approved the restructuring plan of coal-based electricity producer Energy Complex (EC) Oltenia worth some
2.66 billion euros.
The total value of the measures for the reorganization and transformation of EC Oltenia is close to 4 billion euros, if we the company’s own
contribution of some 1.24 billion euros ia added to the sum.
More than 250 million euros have already been allocated, as support granted by the Romanian state in 2020, which is already included in the restructuring plan. About 711 million euros will be granted through the Modernization Fund, for the commissioning of 8 solar power plants with combined installed capacity of 725 MW, refurbishment and modernization of a 10 MW micro hydropower plant and the commissioning of a natural gas-fired electricity generation capacities – a unit of 475 MW at TPP Turceni, and 850 MW unit at TPP Isalnita.
In the initial plan, the total contribution of EC Oltenia in financing the restructuring plan was 42.7 % out of a total of 3.53 billion euros. Of the 1.5 billion euros, EC Oltenia was to cover 50 % of the investments supported by the Modernization Fund, i.e. over 711 million euros. Following changes negotiated with European Commission, the company’s contribution to the financing of the restructuring was reduced to around 30 %.
As compensatory measures aimed at limiting potential distortions of competition generated by the state aid, the European Commission has decided EC Oltenia, together with other electricity producers, to set up special purpose vehicles dedicated to co-investment and operation of gasfired power plants and solar power plants, as well as banning the company from the acquisition of interests in competing operators and invoking state support as a competitive advantage in the company’s communications.
The revised plan also mentions the transfer by 2026 of at least 20 % of the state-owned shares, as a form of remuneration to the Romanian state for the state aid granted. The European Commission considers that Romania will be adequately remunerated for this state aid through the expected positive net earnings, which will increase the value of public participation in EC Oltenia, and by the transfer by 2026 of at least 20 % of the shares held by the state.
