INTERVIEW Daniel Burlan, CE Oltenia: “New investments will lead to a decrease in CO2 emissions by approximately 38% by 2025”

CE Oltenia will start a process of modernization and development of new production capacities by diversifying resources. Investments in new production units have a cumulative installed capacity of about 2,000 MW. The construction of 8 photovoltaic parks in Turceni, Rovinari and Ișalnița with a total installed capacity of about 725 MW is envisaged.

CE Oltenia also plans the refurbishment and modernization of the micro hydropower plant in Turceni with an installed capacity of 10 MW. The company wants to develop new natural gas capacities with a total installed capacity of about 1,325 MW, in Turceni and Ișalnița.

These are the main investments that will be made by the CE Oltenia until 2025. These capacities will lead to a decrease in CO2 emissions by approximately 38%.

Interview with Daniel Burlan, president of CE Oltenia

How do you see the evolution of the energy sector in 2020?

As the statistical situations show, the industrial energy consumption registered a drastic decrease due to the pandemic, the production from thermal power plants decreased by about 15%, the price of the CO2 certificate exceeded the threshold of 30 euros, the energy import is increasing. In these conditions, CE Oltenia has only one chance: to create its own mix of resources – with gas, photovoltaic, micro-hydropower plants along with coal, which, being the safest source of energy production, cannot be completely excluded.

How would you describe the evolution of CE Oltenia in 2020 compared to last year?

The company delivers daily on average in the National Energy System 25,000 MWh, according to DEN requests related to the need for low consumption compared to last year (not only in Romania).

The Oltenia Energy Complex operates, on average, with 5/6 energy groups, providing the necessary electricity required by the National Energy Dispatcher, as well as the district heating services of Craiova.

In the activity of CE Oltenia this year there are some important aspects that I would like to mention.

As in previous years, investments were made in flue gas desulphurization and slag and ash evacuation installations in a dense fluid system, having all the energy groups compliant from these points of view, in 2020 installations were put into operation to reduce NOx emissions to 4 energy groups, to be extended to two more groups.

This year, in September, C.E. Oltenia obtained the environmental agreement for the continuation of the works in the extended license perimeter of the Rosia de Jiu Quarry. To obtain it, the company has demonstrated that it complies with the conditions imposed by the environmental legislation. The previous agreement had been canceled in October 2019 because of appeals filed by environmental non-governmental organizations.

The Rosia Quarry, which is the largest career in the C.E. Oltenia also provides the coal needed by the officials of the Rovinari Power Plant, with major importance in ensuring the continuity of energy produced from coal.

We have submitted the expropriation documents for the cause of public utility for the Tismana and Pinoasa Quarries, and in November we will also submit them for the Lupoaia Quarry.

Also, documentation is submitted for removing from the forestry area the surfaces necessary to ensure the working fronts in the perimeters of Tismana I and II and Rosia de Jiu, and in November the government decisions will be issued. Through the legislative amendment of Law no. 46/2008 (Forestry Code), from this year, it was possible to open the Jilt Sud and Rosiuta quarries.

We talked about energy, about mining. Let’s also talk about our employees: this year the new Collective Labor Agreement was negotiated, together with the social partners, which brings a series of additional benefits for employees, respectively increases in the values ​​of meal vouchers, holiday vouchers, fuel quota, additions for holidays, the indemnity granted during the technical unemployment caused by the pandemic situation. A special fund was also allocated for increasing the lowest salaries in the subunits. We are working on a strategy to eliminate the pay gap. We must recognize and appreciate the difficulty of the work done to produce coal-based energy.

What were your company’s most important achievements last year?

In 2019, CE Oltenia operated on average with 6 energy groups. It produced approximately 12.4 TWh, covering a market share of about 22%, and during the periods of the year with low hydraulicity and wind intensity it reached a market share of over 30%, remaining on the second place in the top. energy producers in Romania. It also provided approximately 1.6 h TW System Technology Services, thus contributing essentially to the safety and security of the National Energy System.

Last year we inaugurated the relocation of the coal depot from EMC Rosia-Rovinari – one of the priority investments carried out by CE Oltenia in terms of environmental policy and social responsibility of the company.

The arrangement of the new landfill included a series of measures to protect environmental factors. I am referring to the sound-absorbing panels mounted on a length of about 2.5 km, both towards the town of Rovinari and towards the locality of Farcasesti, for obstructing the noise dispersion to the inhabited area and to the fixed installations with fine spraying of the water mounted on the contour of the reservoir near the crusher and the distribution node of the conveyor belts, in order to retain the sedimentable or suspended powders from the activity area of ​​the new deposit and not to create discomfort in the neighboring localities.

What challenges CE Oltenia is facing in 2020?

CE Oltenia has received rescue aid of 251 million Euro, to be reimbursed within six months or, if the company’s financial situation does not allow it, to send to the European Commission either a restructuring plan, or a liquidation plan.

In this context, the viable solution, the only one considered by the company’s management and the government, is to continue the activity and, for this, to submit a restructuring plan that includes a decarbonization plan that requires significant investments in the coming years. Thus, CEO will start a process of modernization and development of new production capacities by diversifying resources, to those based on coal will be added less or not polluting solutions such as production units based on natural gas and photovoltaic parks. The restructuring and decarbonization plan provide for the phased closure of production and mining capacities, as well as the outsourcing of activities.

These deadlines must be met. Any deviation means repaying the loan and restructuring aid. It will have to be implemented with all the terms and assumptions we have estimated in the program.

What are your main priorities this year?

Approval of the Restructuring Plan by the European Commission by the end of the year. The plan was submitted to the Commission. It called for clarification on several issues. We have formulated answers and we are waiting for the opinion.

And, as in every time of year with extreme temperatures, the priority for us is to maintain the security of the energy system during the winter peak. The safest energy is that produced on coal, and the stock for the winter peak is assured.

What are your plans regarding technological innovation and cost efficiencies?

The Restructuring Plan provides for investments in new production units with a cumulative installed capacity of about 2,000 MW. The construction of 8 photovoltaic parks in Turceni, Rovinari and Ișalnița with a total installed capacity of about 725 MW is envisaged; rehabilitation / refurbishment and modernization of the micro hydropower plant in Turceni with an installed capacity of 10 MW; development of new natural gas capacities with a total installed capacity of about 1,325 MW, in Turceni and Ișalnița.

These are the main investments that will be made by the CE Oltenia until 2025. These capacities will lead to a decrease in CO2 emissions by approximately 38%.

Also, for cost efficiency, our intention is to outsource the Craiova thermal power plant, in the second part of 2023, because it is a loss-making asset and is the supplier of thermal energy for the city of Craiova.

At the end of the restructuring and decarbonization process, the CE Oltenia will benefit from an energy mix – coal, natural gas, non-polluting sources – which will ensure its viability, transforming it into a modern, less polluting company, which will be able to sustain in continued local and national economy.