The shareholders of the Oltenia Energy Complex (CEO), more precisely the Romanian Government that holds the majority stake, refused to mandate the company’s management for starting negotiations for the construction of a new coal-mining group in Rovinari, Economica.net reported. The project is supposed to be developed under a public-private partnership with a Chinese group.
This is not the first postponement. China Huadian Engineering won the tender to build a 600 MW coal-fueled power plant in Romania, at Rovinari, in 2012. The cost of the project is estimated at EUR 1 billion. The first negotiations began in 2012, the talks were interrupted in 2016 and resumed at the end of last year.
The European Commission has recently urged Romania to revise the integrated energy and environment plan sent in its first form to Brussels and increase from 27.9% to 34% the targeted share for renewable energy in the country’s energy consumption in the horizon of 2030. However, the case for renewable energy does not invalidate the need for replacing the thermal power plants, a recent forecast by global consulting company ICIS suggests.
Romania’s thermal generation capacities will decrease rapidly toward the middle of the next decade, due to the high emissions costs and the capacities approaching the end of their lifetime. ICIS forecasts a 60% drop in installed capacity in coal-fired power stations and 45% in gas plants in Romania. Renewable generation capacities will develop slowly, given that the Government has set a low target, ICIS warns at the same time.