On Thursday, ELCEN submitted the financing requests for the construction of new high-efficiency cogeneration plants at CTE Grozăvesti and CTE Progresu, with total investments amounting to around 286 million euros, according to a company release.
The two projects are: the efficiency of the activity in CTE Grozăveşti by implementing a high-efficiency cogeneration unit, investment in a total value of approximately 120 million euros, and the implementation of high-efficiency cogeneration capacities using thermal engines, in CTE Progresu, investment of almost 166 million euros.
The financing applications were submitted in order to obtain non-refundable financing from the Modernization Fund, Key Program 5: High Efficiency Cogeneration and Modernization of Heating Networks.
According to the press release, the Ministry of Energy published on May 28 the Guide for the production of electricity and thermal energy in high-efficiency cogeneration (CHP) in the district heating sector – the Modernization Fund. The launch of the call related to the CHP guide for accessing 361 million euros from the Modernization Fund took place on May 30.
ELCEN’s largest new power plant project – CET Bucharest Sud – will be submitted for financing through a separate application, in the form of an individual project and not as part of a call for projects, because the investment amounts to over 300 million euro.
Only one power plant was modernized within ELCEN in the period 2005 – 2009: CET Bucharest West. The other three CETs of ELCEN (CET Grozăveşti, CET Progresu and CET Bucharest Sud) are almost 5 decades old and use a non-performing technology specific to the 60s-70s.
“The history of ELCEN is a complicated one. The company’s activity took place for several years in a very difficult context marked by the huge debts of PMB/Radet/Termoenergetica to ELCEN, implied insolvency, potential bankruptcy, impacted by the pandemic, the energy crisis and the prices high levels of CO2 certificates. With perseverance and constant efforts, ELCEN managed to avoid bankruptcy, to get out of insolvency and reintegrate into the economic circuit, opening the way to new, efficient, sustainable investments. Today, after many years, ELCEN did a very important step towards sustainable development. The proposed investment projects will support the efficiency of electricity and thermal energy production in the Bucharest centralized heating system to ensure the quality and continuity of the thermal energy supply service, ensuring flexible and constant energy production to maintain the stability and reliability of the National Energy System, the alignment with the European energy and climate directions regarding the increase of energy efficiency, the reduction of emissions, the reduction of energy costs and the consolidation of resilience,” the press release says.
The main objectives pursued through the realization of the proposed investments: the efficiency of the operation of the power plants; ensuring high energy efficiency by operating in high-efficiency cogeneration; maximizing the production of electricity and thermal energy; reduction of production costs at the power plant level; reducing the volume of atmospheric pollutants and complying with the environmental protection standards in force – low CO2 emissions; preserving ELCEN’s quality as an important participant on the electricity market and system technological services; covering the thermal energy needs of the municipality of Bucharest.