Inauguration of Group 5 at the Rovinari Thermal Power Plant represents a significant investment in Romania’s energy sector highlighting the continued role of coal-fired energy in the context of the energy transition This initiative comes at a critical moment for Europe navigate the challenges of the transition from fossil fuels to more sustainable energy sources China’s investment in this sector underlines the complexity of the region’s economic and geopolitical interactions as each country defines its energy security strategies Romania under pressure to support the green transition Energy Minister Sebastian Burduja’s speech highlights an important reality: Romania is under pressure to support the green transition but this change cannot be made abruptly without affecting national energy security which have more advanced renewable energy capacities Romania is dependent on conventional sources which still play an important role in powering the national energy system is an example of a pragmatic approach: improving efficiency and reducing environmental impact to ensure continuity in a period of transition “In just four years we have gone from two excavators to eight and the extraction capacity has reached 3 million tons of coal per year I have ensured a work area in all careers through 10 government decisions adopted I wanted to go to Rosia Quarry to see the working conditions told me that all he wants is not to leave the country,” said the Energy Minister after visiting the Rosia Quarry European context: Germany and Poland remain major coal users especially after limiting access to energy resources from Russia Germany and Poland have adopted complex policies to balance their energy supply and demand has faced big pressures to cut carbon emissions following an ambitious plan to eliminate coal from its energy mix by 2038 recent events have forced the country to postpone the closure of a number of coal-fired power plants especially in the face of increased energy demands and the Ukraine crisis Poland also remains a major coal user in Europe arguing that its energy security is of crucial importance and continuing to support the coal industry coal remains a key source as they invest in energy transition projects such as developing renewable energy carbon capture technology and expanding energy storage infrastructure these investments require considerable time and money which is why coal-fired power plants are still used as a safety measure China has become a major player in the global energy sector investing heavily in projects in Central and Eastern Europe but also in conventional infrastructure such as natural gas and coal It has developed a strong economic presence in the region through the Belt and Road Initiative and other strategic investment projects Chinese companies have shown a keen interest in energy infrastructure and coal-fired power plant modernization projects providing access to capital and modernized technology This involvement raises questions among European leaders concerned about economic dependence and security risks associated with foreign investment in critical infrastructure Chinese investment brings a significant source of financing at a time when European funds for upgrading conventional energy infrastructure are limited due to the prioritization of green projects Romania and other Central and Eastern European countries could be tempted to work with China to ensure their energy security in the short term until long-term sustainable solutions are found Romania and other European countries will continue to face challenges related to coal dependency Minister Burduja underlines the need for a restructuring plan to prolong the operation of coal-fired power plants and to demonstrate to the European Commission that Romania’s energy security remains a key priority This view is also shared by Germany and Poland where political leaders argue that a rapid transition without the provision of alternative stable sources could jeopardize economic and social stability Group 5 of Rovinari Thermal Power Plant becomes more than just a local investment It is a symbol of the struggle to balance the need to reduce carbon emissions with the urgent need for energy security It is also a statement on how to implement Romania’s strategy to remain flexible and pragmatic in a changing international energy landscape Group 5 at Rovinari and similar projects in Central Europe highlight not only the efforts to pave the way towards a low-carbon future but also the complexity of the economic and strategic decisions in this area They are influenced by a combination of internal and external pressures – from EU regulations to investment opportunities in China – that will define the region’s energy future for decades to come This website is using a security service to protect itself from online attacks The action you just performed triggered the security solution There are several actions that could trigger this block including submitting a certain word or phrase You can email the site owner to let them know you were blocked Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page Two units in coal-fired power plants Turceni and Rovinari won’t be closed by the end of the year like it was planned 0 Romania got its National Recovery and Resilience Plan approved in Brussels with bold ambitions for the country’s energy transformation and coal bailout. It also struggled to get a green light from the European Commission for its massive state aid package for ailing coal and power producer Complexul Energetic Oltenia. Using an option provided in July by the government in Bucharest the firm now claims it can’t go ahead with the planned closure of two units in coal-fired thermal power plants Romania is already struggling to meet deadlines and adopt the legislation necessary for access to European funds Countries throughout Europe have been getting idle coal plants back online and postponing closures to maintain the security of power supply amid the energy crisis. When Bosnia and Herzegovina, which is not a European Union member state, prolonged the operation of two units, the Energy Community Secretariat opened an infringement case against the government Romania, already struggling to meet deadlines and adopt the legislation necessary for access to funds from the National Recovery and Resilience Plan (NRRP or PNRR) and other EU sources is trying to get the EU to renegotiate the terms There are nine coal plants in the utility’s fleet It stockpiled 900,000 tons of the fuel compared to the obligatory 735,000 tons Burlan is convinced the volume would be maintained at a high level after the winter due to a boost in coal mining there should be five coal plants in regular operation and another two on standby The closure of Rovinari 3 depended on a modernization project for unit 3 Be the first one to comment on this article 02 May 2025 - The project is located in Constanța county recognized for its superior yields in green energy production 02 May 2025 - The Sunčana (Sunny) Vipava project envisages installing solar power plants with a combined capacity of 20 MW 30 April 2025 - OMV put into operation its 10 MW green hydrogen plant at the Schwechat refinery 30 April 2025 - It is the second time this year that MVM contracted gas-fueled and hydrogen-ready power plants at sites of former fossil fuel facilities © CENTER FOR PROMOTION OF SUSTAINABLE DEVELOPMENT 2008-2020 website developed by ogitive According to the Energy Strategy of Romania for the period 2019 – 2030 realization of the 600 MW energy group at the Rovinari Power Plant is considered a strategic investment of national interest in order to consolidate the national energy market and the diversified energy mix by capitalizing on the primary energy resources and stimulating domestic investment to provide equipment and materials The new group will be a high-performance generation unit the facility being provided with the best available techniques for reducing particulate matter with the possibility of adding CO2 capture transport and geological storage technology to comply with the regulations in force and to meet the requirements for limiting the emissions of pollutants The energy group will use about 5 million tons of lignite annually and will generate about 4,000 jobs during the implementation of the project The investment was estimated at approximately EUR 1 billion Negotiations are currently under way to conclude the superficies and coal supply agreements Oltenia Energy Complex was selected to set up the IPP-type company while China Huadian Engineering was selected to make the investment following an international tender held in March 2012 The Chinese company is active in the field of design and production of equipment for thermal power plants and also in the field of production of equipment for environmental protection 2012 following the decision of the Romanian Government to reorganize the power sector by the merger of Societatea Nationala a Lignitului Oltenia and the three power generation companies (Complexul Energetic Rovinari Complexul Energetic Turceni and Complexul Energetic Craiova) 11 power units with an installed capacity of 3,240 MW of which: Rovinari Power Plant – 3 x 330 MW lignite-fired condensation power units ; Turceni Power Plant – 4 x 330 MW lignite-fired condensation power units ; Isalnita Power Plant – 2 x 315 MW lignite-fired condensation power units ; Craiova II Power Plant – 2 x 150 MW/160 Gcal lignite-fired cogeneration power units The main heat supply system for the consumers in Craiova City is the centralized system and the heat generation source is Craiova II Thermal Power Plant Branch as follows: – 2 lignite-fired cogeneration power units (2 × 150/120 MW) – using natural gas as flame support; – 2 lignite-fired hot water boilers (2X100 Gcal/h) – using heavy-fuel oil as flame support; – one boiler of 50 Gcal/h and one boiler of 30 Gcal/h Craiova II Thermal Power Plant Branch supplies heating agent (hot water) to Craiova City in a centralised system and 19 supplying companies and public institutions networks and connections in Craiova City and in the surrounding areas have a total route length (underground and overground) of 60 Km Heated apartments: ~ 62,000 Beneficiaries: ~ 200,000 3.5 km upstream of Turceni Thermal Power Plant has an installed capacity of 10 MW (1 x 1 MW hydro-power unit and 3 x 3 MW hydro-power units) An increase of up to 30 mc/s of river flow is possible The first hydro-power unit was commissioned on 17.10.1989 The hydropower plant generated over 300 GWh to date State-owned China Huadian Engineering successfully bid for an energy project in Romania and will invest USD 1 billion to build a 500 MW coal-fired plant in the Rovinari Energy Complex that will create 500 new jobs A technical team of the Chinese firm went to Rovinari on Monday and will set up the project company that builds the power unit The ministry said this investment will create over 500 new jobs in an area that doesn’t have a lot of employment opportunities. China Huadian Engineering Co ranks among the five largest Chinese companies active in the energy sector The power company has build 212 power plants in Asia and has ongoing projects in Turkey We use cookies for keeping our website reliable and secure providing social media features and to analyse how our website is used Tenders for 455 MW of PV capacity replacing CE Oltenia’s coal plants drew investors from China 0 Eight companies and consortiums are participating in the tenders for the design, construction and operation of four solar parks on land belonging to Romania’s state-owned coal miner and power plant operator Complexul Energetic Oltenia The government has bailed out the troubled utility using European funds The strategy is to replace its assets with solar power and gas power plants The locations are in the counties of Dolj and Gorj in the country’s southwest The two companies valued the contracts at an overall EUR 375 million Selected contractors would operate the solar power systems for three years and transfer them to CE Oltenia and OMV Petrom The Ișalnița unit is envisaged with a minimum capacity of 85 MW and valued at EUR 69.6 million is for at least 110 MW and a 400/110 kV substation Project Tismana 1 should have no less than 128.3 MW The European Union’s Modernisation Fund is covering 70% of the costs. According to data from Romania’s electronic public procurement system SEAP, reported by EuroOlteniaInfo, there are three sole bidders Girişim Elektrik is a Turkish engineering Ameresco Sunel Energy is a joint venture between Ameresco but with operational headquarters in Athens Romanian energy infrastructure and civil construction company Electrogrup is the third company bidding alone Shanghai Electric placed a bid as a consortium of its subsidiaries Shanghai Electric Hong Kong International Engineering Co Romanian company Actual Connect leads a consortium consisting of six other domestic companies all with a track record in the photovoltaics sector is the head of a consortium including Italian solar power project developer Comal All participants submitted bids for all four photovoltaic plants except Restart Energy One which is registered only for the first lot 05 May 2025 - VDE Renewables found that SolarEdge’s advanced safety capabilities minimize photovoltaic system risks and effectively prevent fire hazards Energy transition is a complex global process and in the current context coal continues to play a significant role even in the face of ambitions to reduce carbon emissions and promote renewable energy sources Romania and other European countries are in a delicate balance between the need to ensure energy security and commitments to reduce dependence on fossil fuels Group 5 Rovinari: A landmark project for the Romanian energy sector The inauguration of Group 5 at the Rovinari Thermal Power Plant and investments in modernizing the coal-fired infrastructure reflect the pragmatism needed to manage this transition After a decade of works and investments of more than RON 620 million delivering 230 MW into the national energy system the power plant meets the strictest standards of efficiency and environmental protection Romania’s Energy Minister Sebastian Burduja emphasized the importance of this project saying: “The time for coal-fired power generation has not and will not pass without putting something else in its place.” This reflects a pragmatic position: energy transition is inevitable but it must be managed in a way that avoids supply crises and ensures energy security European context and challenges of the energy transition the transition from coal to more sustainable energy sources is a priority but the process is proving to be much slower and more complex than anticipated which has set an ambitious target of eliminating coal from its energy mix by 2038 has had to postpone this plan because of the energy crisis caused by conflicts in Ukraine and instability in the gas market continues to be a major player in this market considering coal essential for its energy security even countries with ambitious green policies are being forced to keep coal-fired power plants as a fail-safe in the face of energy crises with an energy infrastructure that is still heavily dependent on coal The recently modernized Group 5 at the Rovinari Thermal Power Plant represents a significant investment that underlines the continued role of coal in the national energy mix Energy Minister Sebastian Burduja stressed that the energy transition must be a gradual one and the modernization of coal-fired power plants is essential to ensure a safe and sustainable transition In addition to Romania’s domestic challenges the global geopolitical context has a profound influence on the European energy sector plays a key role in Europe’s energy infrastructure including investing in coal-fired power plants and developing new carbon capture technologies The Belt and Road Initiative’s energy infrastructure projects underline how coal remains a critical resource for developing economies in Central Asia and the Middle East Chinese investments in energy infrastructure in Poland and other Central and Eastern European countries highlight the importance of coal in maintaining energy and economic stability even as Europe steps up its green transition efforts despite global commitments to cut emissions coal remains a safe resource for many countries reaffirms its commitment to ensure energy security in the short and medium term without compromising long-term emission reduction targets Romania’s strategy: Balancing energy security and green transition Romania faces the challenge of meeting the European Union’s energy transition requirements while ensuring its energy independence Rovinari Group 5 is an example of modernization of coal-fired infrastructure The project not only meets today’s energy efficiency and environmental protection requirements but is also a precaution against possible energy supply crises Similar projects in other European countries also demonstrate that the energy transition cannot be achieved quickly without significant risks to economic and social stability Romania needs to adopt a balanced approach: on the one hand to diversify its energy sources by investing in renewables natural gas and nuclear energy; on the other hand to continue modernizing its coal infrastructure to maintain energy security Romania needs to invest not only in modernizing the energy infrastructure but also in social programs to support the vocational retraining of coal industry workers where the mining sector is an important source of jobs the energy transition must be accompanied by measures to ensure effective retraining of the workforce These measures are essential to avoid rising unemployment and support the development of new green industries Romania also has the opportunity to strengthen its economic and infrastructure links with China and other emerging economies in Asia under the New Silk Road project can bring significant economic and technological benefits positioning Romania as a strategic node in global energy networks Romania must show pragmatism in approaching the energy transition emphasizing the need to maintain a diversified energy mix that ensures energy security in the short and medium term As Europe continues to navigate the challenges of the green transition coal remains an essential element but requires constant modernization to reduce its environmental impact Romania has the chance to be a leader in managing this balance by investing in sustainable energy solutions while safeguarding its economic and social stability Romanian anticorruption prosecutors are investigating former social democrat transport minister Dan Sova for abuse of office regarding contracts signed by his former law firm with state energy companies Sova himself announced on Wednesday that he was brought in for questioning regarding three contracts concluded between himself Asociatii law firm and state energy companies The prosecutors are investigating how these contracts were assigned The Social Democratic Party (PSD) Senator pointed out this file regards the contracts involving Rovinari and Turceni Sova’s dealings were brought to the attention of DNA via an anonymous complaint Dan Sova resigned as minister of Transport in June 2014 to work on Victor Ponta’s presidential campaign. He was appointed Transport minister in March, after PNL exited the governing coalition. Previously, he ran the government’s department for Infrastructure projects and Foreign Investments. More than 100 hectares of forests in Romania’s Gorj region could be cut down to expand a lignite mine 0 The Romanian government adopted the decision to cut down a 106-hectare forest without compensation so that the state-owned coal mine and plant operator Complexul Energetic Oltenia (CE Oltenia) could expand one of its lignite mines CE Oltenia plans to boost Timișeni-Pinoasa lignite output to 8 million tons a year The government’s decision will allow CE Oltenia to increase lignite output at the Timișeni-Pinoasa mine to 8 million tons per year That’s almost half of the total 2021 lignite production by CE Oltenia which operates most of the country’s coal mines and thermal power plants The decision to expand lignite mining, adopted by the government last week, runs counter to the decarbonization process, which is a part of the National Recovery and Resilience Plan (NRRP) and national law, which envisions phasing out coal by 2032 “Expanding the Timișeni-Pinoasa mine in Gorj county to a capacity of 8,000,000 tonnes/year of lignite not only increases CO2 emissions but also means that more than 100 hectares of forest will be wiped out,” warned Alexandra Doroftei Double negative effect: increased emissions and reduced capacity to absorb CO2 from the atmosphere She points out that deforestation and burning lignite will have a double negative effect on the environment by increasing CO2 emissions and reducing the absorption capacities of this greenhouse gas from the atmosphere Late in 2022, the government made two more decisions that contradicted decarbonization processes, noted Bankwatch. The government approved a decision to postpone the closure of two 660 MW blocks and extend their operation until October 2023 The government also postponed the closure of two 660 MW blocks The association notes that this could lead to a potential increase in lignite production by 15.5 million tons per year CE Oltenia had an average annual production of approximately 18.5 million tons of lignite from the ten mines it operates The Romanian giant also operates nine thermal power plants in the country The decarbonization law is one of the milestones in the National Recovery and Resilience Plan that had to be completed by the end of 2022 for Romania to receive the second tranche of EU recovery funds The purpose of the decarbonization law is to establish a framework for reducing CO2 emissions in the energy sector but the latest changes have the exact opposite effect “The actions of the Romanian government towards decarbonization of the energy sector show that cashing in recovery funds is its main motivation not real measures to decrease CO2 emissions and advance the energy transformation We urge the government to act on the climate crisis and stop postponing the much-needed measures to mitigate it” Last year, the government approved EUR 2.66 billion for restructuring CE Oltenia Bankwatch notes that the energy giant has a coal units retirement calendar in its restructuring plan approved by the European Commission as a condition for obtaining state aid Coal mines that supply the coal to the respective units would follow the same calendar according to this association that monitors the environmental and social impact of public and private projects the government scrapped the provision that allowed coal-fired power plants to stay in technical reserve 05 May 2025 - The Trebinje 3 photovoltaic plant would have an installed capacity of 53.63 MW and an estimated annual production of 85.5 GWh they have outdated technologies and most of them risk not complying with the environmental conditions imposed by the European Commission (EC) starting with 2021 Romania last year submitted the Integrated National Energy and Climate Change Plans (NECP) in addition to setting too little a target for renewable energy also envisages a reduction in coal production capacities Only 540 MW will be withdrawn for a decade after 2020 The coal-fired installed capacity will diminish slightly by 2030 The average age of coal-fired units in Romania is 42 years It means that in 2030 the average age will reach 53 years exceeding the economic viability estimated at approximately 40 years in the case of coal-fired power plants Withdrawing such a low number of units over the following decade would only be possible through major investments in upgrading those remaining operational but most companies are barely able to cover their operating costs Limiting global warming to 1.5 degrees Celsius will only be possible if energy systems are radically transformed to zero emissions by 2050 Romania seems to be failing to take concrete steps to achieve this goal given the unchanged reliance on coal dependence for electricity generation The new EU pollution standards (BAT – Best Available Techniques) adopted in July 2017 and which will come into force in 2021 impose stricter limits on the air emissions of certain pollutants from large combustion plants – including sulphur dioxide (SO2) Many units in Romania cannot fall within the existing limits although they benefit from several derogations This is largely due to the fact that operators cannot afford the necessary investments Romania violates the European legislation in the field the EC sent to Romania a letter of formal notice as 4 thermal power plants were operating without integrated environmental permit the issue of authorizations for these thermal power plants was not possible since the pollution reduction technologies were missing as emissions of sulphur dioxide and dust from Govora 2 and Deva 2 coal-fired power plants “significantly exceed the limits provided by the national ceilings.” No thermal power plant in Romania has requested yet a derogation from the new limits provided by the Industrial Emissions Directive The most probable explanation for this insignificant decrease in the coal-fired installed capacity is due to the fact that estimates in NECP are based on the National Energy Strategy The document provides for 4 priority projects including the construction of a 600 MW lignite unit on the Rovinari thermal power plant site Many thermal power plants in Romania are still benefiting from derogations from the emission limits for different pollutants by 2020 through the National Transition Plan (NTP) This allows plants to comply with the emission limit values applicable to them on 31.12.2015 which are higher than those set by the Industrial Emissions Directive as long as the total national emissions drop from one year to another below a certain ceiling (for example from 9,496 tons in 2016 to 3,960 tons in 2019 for sulphur dioxide) Some units have also benefited from other derogations through the Accession Treaty of Romania or the Large Combustion Plants Directive * Coal-fired installed capacity on 01.02.2019 Note: Almost all coal-fired power plants in Romania are owned by the state with the exception of those in Bacau (operated by Thermoenergy Group) and Iasi (Veolia) Govora is owned by Valcea County Council and the rest are companies where the majority shareholder is the Ministry of Energy: Drobeta operated through RAAN; Craiova Turceni and Rovinari are managed by Oltenia Energy Complex (CEO); Mintia (Deva) and Paroseni – by Hunedoara Energy Complex (CEH) The last two companies also exploit lignite and hard coal mines Bacau: The coal-fired unit in Bacau was used in the past to supply heat to the city Although the coal-fired unit has been in conservation for years the company does not plan to decommission it “until a local/national strategy of clarification of the situation is published,” according to a communique from 2017 Turceni 1 and 6: Unlike the other units operating on the site units 1 and 6 in Turceni have not been upgraded over the past two decades A wet desulphurization system for flue gas was built for unit 6 but because more costly investment was needed to streamline the unit the company decided in 2016 to connect unit 7 to the desulphurization system and dismantle unit 6 The operator of Turceni power plant announced in 2016 that it would dismantle unit 1 as well the municipality has rented two boilers since 2016 and plans to build a gas unit as a long-term solution Isalnita: Although CEO has invested in both units of the power plant to meet emission requirements These facilities are the oldest lignite units in Romania in order to meet the new EU pollution standards for 2021 CEO prioritizes investments for the other thermal power plants it manages – particularly Rovinari and Turceni the company announced that unit 8 would be closed by 2019 but during 2017 and 2018 this announcement has turned into “the thermal plant will especially use unit 7.” Craiova: These are the most recent units of CEO no rehabilitation works have been executed as the units have over 150,000 hours of operation to date and an age of 30 years additional emission reduction measures will be needed to meet the new EU pollution standards which will lead to an increase in total costs CEO will prioritize the Rovinari and Turceni thermal plants A potential advantage of this thermal power plant is that it produces heat for Craiova one of the largest cities in Romania and an important industrial centre so that probably at least one unit will remain functional or will be switched to natural gas if necessary Rovinari 5: The unit was closed in February 2015 for rehabilitation in order to increase efficiency and meet emissions requirements The upgrade was due for completion in 24-30 months the project was completed at a rate of 45% and was delayed once again Given that CEO was strongly affected by the increase in the price of CO2 emission allowances and that it should upgrade other units by 2021 the completion of this investment remains uncertain Govora 3: There are currently three large combustion plants (LCP) operating on the Govora thermal power plant site another was modernized to continue to operate on coal and the last – Govora 3 – has not undergone any upgrade work and has record emissions it has exceeded the NTP ceiling for SO2 and dust emitting more than all plants included in the plan Given that there are no plans to upgrade Govora 3 and that the thermal power plant can rely on other two plants to continue production this unit will most likely be the first to be withdrawn Mintia: Unit 2 is the only plant of the thermal power station that does not benefit from derogations from the emission limits under NTP It is due to the fact that the regulations of LCP Directive do not apply to it with the condition of operating maximum 20,000 hours until December 31 According to the latest Annual Environmental Report this unit operated for 1,270 hours in 2017 alone The report further states that “for unit 2 CEH did not make a decision on definitive withdrawal from operation before initiating insolvency proceedings (…) Unit 2 was started in July 2017 for tests.” The other units of Mintia thermal power plant have not been upgraded either The National Energy Strategy mentions that The national gas company Romgaz has also announced an intention to build in the near future a gas-fired unit on the site of Mintia thermal power plant Paroseni: Together with the other thermal power plant of CEH – Mintia – Paroseni is still operating illegally in absence of an integrated environmental permit managing at the same time 4 non-profitable hard coal mines things started to move last year at Paroseni when an investment of EUR 65 million to reduce SO2 emissions was started it is no clear whether the other limit emissions under the new EU pollution standards will be met given that the unit does not have the technology of selective non-catalytic reduction of nitrogen oxides (SNCR) Iasi: The relatively low capacity thermal power plant in Iasi is operated by Veolia the company may decide to switch it to natural gas Unlike the other thermal power plants mentioned above the fact that CET Iasi II has an integrated environmental permit valid and has been upgraded to reduce pollution is an advantage The thermal power plant also supplies heat to the city with the fourth largest population in Romania and therefore receives a cogeneration bonus amounting to a total of RON 27 million in 2017 4 and 6: This thermal plant is the most efficient of those operated by CEO fuel is shipped directly onto the conveyor belts to the thermal power plant so transport costs are significantly reduced all quarries managed by CEO will need to be expanded to continue production and mining machinery also needs modernization CEO plans to invest in these units to meet the new EU pollution standards and the integrated environmental permit which had expired on 31.12.2017 was renewed on 25.05.2018 thus operating illegally for 10 months last year 5 and 7: Unit 7 at the Turceni Thermal Power Plant benefited from a derogation from the LCP Directive provided it operated for 20,000 hours until December 31 This condition has not been observed and the unit has operated illegally for nearly 3 years when the integrated environmental permit of the thermal power plant was reviewed to include this unit as well Having already benefited from a derogation it now has to meet the strictest pollution limits under the new EU pollution standards given that units 5 and 7 have been upgraded and are now equipped with selective non-catalytic nitrogen oxide (NOx) emission reduction technology The same investment is also provided for the other two functional units Govora 4: The thermal power plant operates illegally because it does not have an integrated environmental permit but according to its reauthorization request it could theoretically be legalized The request shows that various investments have been made to ensure that the plant complies with existing environmental legislation – a desulphurization plant and a selective non-catalytic NOx reduction system Economic aspects: There may be difficulties in paying the instalments of the loan needed to build the unit as cash flow generation would be limited and insufficient given the current prices in the energy market this project would create a significant number of jobs in the region but the document does not mention how they will be created The analysis focuses on the economic challenges and vulnerabilities of the 600 MW lignite-fired plant planned in Rovinari The potential for generating the profit of a thermal power plant is determined by the revenue generating capacity and the costs associated with energy production there are three important elements of the production cost: fuel cost in this case lignite; the cost of carbon dioxide (CO2) associated with energy production; cost of limestone added to reduce sulphur dioxide (SOx) emissions the assessment of the estimated financial performance of the planned unit will be based on available energy sales prices The level of DAM for base load on OPCOM fluctuated for most of 2018 below EUR 50/MWh Futures prices expected for 2019 and 2020 are below EUR 50/MWh These market conditions are not a good environment for project implementation No other additional selling opportunity – biomass co-firing the thermal power plant will face a very difficult financial environment from the first year By analysing the structure of operational costs from a prudent scenario perspective the project would not be able to generate the cash needed to pay the loan instalments needed for the construction or to provide some return to shareholders We mention that this project is already among the objectives of the National Energy Strategy so it could benefit from additional support schemes – biomass co-firing but these have not been mentioned so far in any document It will be essential for the viability of the project Coal-fired power plants that do not have carbon dioxide (CO2) reduction technologies are typically the installations that generate the highest CO2 emissions in any country and the still-functioning coal-fired units are even more polluting with regard to greenhouse gases An essential issue under the new Emissions Trading Scheme is the price level on European exchanges A sharp rise in prices has been observed over the past 15 months which has significantly influenced the financial sustainability of coal-fired units as they operate anyway at a high rate of carbon dioxide (CO2) emissions The current ETS price level is over EUR 21/MWh accounting for about 50% of the sales price the project can make The construction cost of the thermal power plant corresponds to the European industrial standards The planned unit would operate at higher pressures and temperatures compared to conventional thermal power plants or with circulating fluidized bed technology based on the preliminary feasibility study of the project a staged flue gas cleaning system was designed to meet the limits imposed by the LCP Directive there will be a flue gas desulphurization plant and in the second stage a selective non-catalytic reduction system would reduce the emissions of nitrogen oxides (NOx) of the planned unit a system for reducing carbon dioxide emissions (CO2) is not foreseen and this will have significant implications on the financial sustainability The total cost of the investment is slightly less than one billion euros and includes the cost of the plant project development costs and unplanned costs One of the important features of the planned investment is the efficiency of the thermal power plant The use of coal in conventional units and adding desulphurization equipment and equipment for the reduction of nitrogen oxides of flue gas would reduce efficiency Considering only the additional flue gas cleaning system without reference to additional efficiency improvement methods meeting the required efficiency limits will become difficult From the perspective of the capacity allocation mechanism one of the eligibility criteria for participation in such markets is the minimum efficiency criterion ClientEarth and Greenpeace Romania have reported to the European Commission about the very low level of sanctions imposed by authorities on coal-fired power plant operators in breach of European law The two organizations claim that the fines which in some cases are at the same level as those imposed on restaurants that allow customers to smoke indoors are part of Romania’s systematic failure to set and apply appropriate sanctions Under the Industrial Emissions Directive (IED) Member States are obliged to adopt ‘effective’ ‘proportionate’ and ‘dissuasive’ sanctions to punish non-compliant operators sanctions imposed on operators of coal-fired power plants are far too small to prevent their illegal operation whose annual revenues are typically between EUR 86 and 400 million the sanction for non-authorized operation is a single fine from RON 30,000 to RON 60,000 if the operator pays the fine within 15 days the operators of thermal power plants are exposed to fines of up to EUR 2 million for operation without authorization 3 out of 8 coal-fired power plants operate since 2013 without integrated environmental permit Sanctions could be more effective and could discourage illegal operation if the authorities apply them repeatedly The Commission will examine the complaint filed by ClientEarth and Greenpeace and will decide whether to take legal action against Romania The Government wants to erase the budget debts of power producers facing financial problems such as CEH or Electrocentrale Bucharest and has developed a procedure whereby they will be able to transfer in lieu of payment to the Ministry of Energy functional production assets in exchange for extinguishing tax receivables that the National Agency for Fiscal Administration (ANAF) has over them is an attempt to keep alive these vital units for the safety of the functioning of the national energy system The debt erasure measure is justified “in view of the difficult economic and financial situation of some economic operators which have electricity generation capacities of particular importance in maintaining the level of safety in operation of the National Power System,” reads a document of the Executive The document also states that the measure is justified by the fact that the dispatchable energy production units have the obligation to offer all the electricity available on the balancing market and that the economic operators holding dispatchable units have debts managed by ANAF and the adoption of some measures for their recovery through enforcement measures or other means of extinguishing claims do not ensure the desideratum of maintenance within the National Power System