Why Romania prefers expensive energy on coal instead of imports. The explanations offered by the Ministry of Energy, which wants from Brussels a pasture on the closing of the coal power plants

Romania is trying, through the Ministry of Energy, to convince the Brussels to postpone the closing of the coal plants from the Oltenia Energy Complex, claiming that this step will increase the risk of Blackout and will lead to an increase in 30% of the energy. Hotnews wanted to find out from the Ministry led by Bogdan Ivan why maintaining these power plants will maintain the prices, in the context in which they produce very expensive energy.

• Romania has committed through the PNRR to close several units on the coal until January 1, 2026, in the context in which the energy on the coal is the most expensive and polluting.

• The Oltenia Energy Complex is obliged to implement a restructuring plan, designed in 2020, which involves the replacement of coal boilers with 8 photovoltaic parks, of about 700 MW, in Turceni, Rovinari and Ișalnița, and the development of gas capacities, with a power of about 1,300 MW, in Turceni and Ișalnița.

• The European Commission approved, in 2022, a state aid of 2.6 billion euros for restructuring. Most of this aid was received by the Oltenia Energy Complex, which did not make any progress.

The Oltenia Energy Complex sold energy with over 600 lei / MWh (about 120 euros / MWh), with tape delivery, being more expensive than the import.

According to INS data, in the first five months of the year, Romania imported at an average price of 113 euros/ MWh, ie about 35 lei cheaper.

How can this expensive produced energy help influence the price reduction? To this question, the Ministry of Energy answered that the import prices at peak hours are very high – reaching 400 €/MWh.

“The national electroenergetic system (SEN) has a major deficit of flexible capacities, necessary for the permanent balancing of the network. The renewable capacities, although with a low marginal cost, are unpredictable and cannot ensure the energy security in all time intervals. In the absence of charcoal groups, Romania is obliged to import massively (up to 3,000 MW) in certain intervals) Frequently 400 €/MWh – net superior to the price offered by CE Oltenia in bilateral contracts (about 600 lei/MWh) until the end of 2025 ”, the Ministry of Energy said.

Imports from non-EU states “affect the competitiveness of domestic producers”

He stated that EC Oltenia does not intend to market energy in 2026, which then pointed out the subject of imports from non-EU states (Serbia, Ukraine), which says “generates a risk of” carbon Leakage “.

“Their charcoal plants do not bear the costs related to CO₂ emission certificates and do not comply with the limits of SO₂ and noₓ from European legislation,” added the Ministry of Energy.

“These imports distort the market, affect the competitiveness of the internal producers and amplify the cross -border pollution,” the institution said.

“In addition to these commercial and environmental aspects, from the perspective of geographical location, it is considered, within the European energy system, as an energy node, and any congestion in the energy networks of the neighboring countries brings another constraint that generates new problems to balance and the impossibility of importing from countries where the price is lower, only the price is less,” Energy.

The Ministry of Energy blames the pandemic, war and auctions

The Ministry of Energy invokes the Pandemia, the Ukraine War and complicated tender procedures as reasons for non -compliance with the EC Oltenia of the obligations from the restructuring plan and the non -realization of investments in gas power stations and photovoltaic panels.

How the Ministry of Energy explains the situation:

• The Covid-19 Pandemia and the Ukraine war have generated major disturbances and unforeseen and independent circumstances by the Oltenia Energy Complex, as a beneficiary of the state aid, which significantly influenced the ability to comply with the obligations in the approved plan, says the Ministry of Energy.

• The duration of the award procedures in the context of projects of significant complexity was longer than the one provided to be carried out according to the restructuring plan. In some cases 215 – 755 days, depending on the appeals, says the Ministry of Energy.

• The negotiations for attracting investors were made in several stages and involved long-term negotiations with the designated partners. The deadline stipulated in the registration restructuring plan at the SPV trade register (n.red. Special Purpose Vehicle, an entity to manage the projects), of 31.12.2022, was exceeded in the case of Alro and Tinmar partners. The reason is the non -recipient, in the first stage of attracting investors, of any offer, which involved the resumption of the selection process and the negotiations regarding the association agreements.

• There have been appeals made by non -working bidders in the public procurement procedures for gas projects. In the case of public procurement procedures for Owner's Engineer in the projects aimed at building the 2 energy blocks on natural gas, respectively the 2 CCGTs, the terms of achievement initially assumed in the restructuring plan have been delayed due to the appeals made within the procedure.

• There have been investigations of the European Commission, checks of the National Agency for Public Procurement, market consultation procedures, other legal aspects related to the legitimacy of SPV partners, the Ministry of Energy also transmitted. The award contracts regarding the general entrepreneur were not signed as scheduled in the restructuring plan.

• Increasing market prices in terms of gas groups is still a reason invoked by the Ministry of Energy. According to him, EC Oltenia, together with the partners, organized public procurement procedures for gas projects that were canceled because the price per installed increased by more than 45% compared to the value provided in feasibility studies.

There are three months until the deadline is expired

The Ministry of Energy argues that there is no risk for Oltenia to return the state aid of 2.6 billion euros due to non -compliance with the obligations in the restructuring plan.

“The restructuring plan approved by the European Commission is being modified, and the company has pre-enforced the Commission for the prolongation of the terms. The analysis process is in progress,” the Ministry of Energy said.

According to him, from the total amount, only part was used for the purchase of CO₂ emission certificates. The rest of the funds mainly come from the Modernization Fund and are allocated to the projects carried out through joint ventures (SPVs), not directly what Oltenia.

The energy groups that would be permanently withdrawn from the operation are: Rovinari 6, Turceni 7, 330 MW each, and Ișalnița 7, 315 MW. Romania has committed, through the PNRR, to close them until January 1, 2026. There are three months.

The Minister of Energy has recently stated in a press conference that he had several negotiations at the European Commission level “on this extremely important subject”.

“It is obvious that those in the European Commission rightly asked us-good people, we gave you the money; or you give us the money back, if you want to keep the boilers on the coal, or close them,” said the minister, according to Agerpres, on September 19.

He said he hopes there is no penalties.

“I hope that the arguments brought will create the framework in which Romania will no longer have penalties for non -closing and non -compliance with the commitments made and we can still keep at least three groups in operation and two other reserve groups from the five that are part of that milestone,” said Bogdan Ivan.