The Oltenia Energy Complex receives 895 million euros for the construction of photovoltaic and gas-fired power plants of a total capacity of 2,060 MW from the Modernisation Fund, according to a statement by the company released to Agerpres on Friday.
The Investment Committee of the Modernisation Fund approved Romania’s application for funding future gas-fired power plants of the EC Oltenia and also confirmed funding for the photovoltaic power plants.
These are strategic projects of the Romanian energy sector included in the Restructuring and Decarbonisation Plan of EC Oltenia approved at the beginning of the year by the European Commission.
Approximately 895 million euros will be allocated from the Modernisation Fund for these investment projects.
“It is a very important new step in the implementation of the EC Oltenia Restructuring Plan, given that a major component of the plan is the construction of new facilities based on solar energy and natural gas. These new capacities are essential to the long-term viability of the company, and money from the Modernisation Fund allows the completion of the projects,” according to Daniel Burlan, chair of the CE Oltenia Directorate.
There are eight projects submitted for the production of energy from renewable sources (photovoltaic plants), of an installed capacity of 735 MW and worth almost 671 million euros, with 70% of the amount coming from the Modernisation Fund.
The photovoltaic power plants are included among priority projects for which funding confirmation was required from the Investment Committee of the Modernisation Fund.
The development of the two gas-fired production units of an installed capacity of 1,325 MW in Turceni and Isalnita is included among non-priority projects.
The total value of the two projects exceeds 841 million euros, of which 50% will come from the Modernisation Fund.
According to a tentative schedule, the eight photovoltaic power plants will be operational in 2024, and the two gas-fired plants will be operational in mid-2026.
In addition to the Modernisation Fund money, the projects qualify for bank funds, as well as own contribution of CE Oltenia and its partners.
Two syndicates are being put together in which international financial institutions and the most important commercial banks in Romania are involved.
In addition to the two partners selected at the end of 2021, Tinmar Energy and OMV Petrom, with which negotiations are advanced, CE Oltenia has relaunched the selection process for the 850 MW combined cycle power plant project in Isalnita.
The construction of new, less polluting electricity generation facilities is of strategic importance to Romania, therefore the transformation projects of CE Oltenia have been included in Romania’s Integrated Energy and Climate Change National Plan, and in the National Energy Strategy.