The Investment Committee of the Modernization Fund approved Romania’s request for financing for the future gas power plants of the EC Oltenia and also confirmed the financing for the photovoltaic projects. The company recalls, in a press release, that approximately 895 million euros will be allocated from the Modernization Fund for these investment projects.
“The new generation capabilities are essential for the long-term viability of the company, and the financing through the Modernization Fund allows the completion of projects “, said Daniel Burlan, President of the Directorate of CE Oltenia.
Among the projects submitted there are eight projects for the production of energy from renewable sources (photovoltaic parks), with an installed capacity of 735 MW and worth almost 671 million euros. 70% of the amount comes from the Modernization Fund. Photovoltaic parks are included in priority projects, which required confirmation of funding from Modernization Fund Investment Committee.
The development of the two gas production units with an installed capacity of 1325 MW in Turceni and Ișalnița, is included in non-priority projects and the financing from the Modernization Fund had to be approved by the Investment Committee. The total value of the two projects is over 841 million of which 50% will come from the Modernization Fund.
The estimated timetable is that the eight photovoltaic parks will be operational in 2024, and the two gas-fired units from mid-2026.
In addition to the financing from the Modernization Fund, the projects will benefit from bank financing, as well as from the own contribution of CE Oltenia and its partners. Company says two banking syndications are being structured 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 it is in advanced negotiations, CE Oltenia has relaunched the selection process for the 850 MW combined cycle power plant project in Ișalnița.