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EnergMin Ivan: Closing down coal-fired power plants would increase energy prices by at least 30pct

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Energy Minister Bogdan Ivan said on Thursday that the decommissioning of the coal-fired power plants at the Oltenia and Jiu Valley Energy Complex would create an even greater vulnerability from an energy point of view for Romania and would increase energy prices by at least 30%.

„I believe very much that the current governing coalition, the prime minister of Romania, the President of the country, the members of the Supreme Council for National Defence (CSAT) all have the same interest, namely to make Romania an economically strong country, and the price of energy is found in everything that means our economic security and in the negotiations we have with those in the European Commission to settle things that have led us to an extremely complicated situation. And here I am referring to the decarbonisation targets that must be achieved by the end of 2025, which involve decommissioning installed powers of approximately 2,700 megawatts at those coal-fired power plants at the Oltenia and Jiu Valley Energy Complex, which once taken out of production would create an even greater energy vulnerability for Romania and which, once removed from production, would create an even greater energy vulnerability for Romania as when taken out of use, energy prices would increase by at least 30%,” Ivan said after a government meeting.

He explained that Romania has four months left until the moment when, according to the commitments made by the Romanian state, it must close both its mines and its coal plants.

„I am waiting for a final form of an interim study on the impact of the closure of these mines on Romania’s energy security. The negotiations we have started with the European Commission concern very clear technical data. Tomorrow, after a discussion with the prime minister of Romania, to whom I will present the data of that survey, I will also send it to those in the European Commission and we will analyse very clearly how, at this stage, to stop the closure of these mines and to keep the coal-fired plants open.”

Ivan added that he will start the legal steps to make an analysis of the deposits in the Jiu Valley, in Hunedoara and Gorj counties, in order to extend until 2030 the mining operation and the operation of coal-fired power plants.

„From my perspective, in a social, economic and strategic analysis of Romania, we had a discussion and I will start the legal steps to make an analysis of the deposits in the Jiu Valley, in the counties of Hunedoara, Gorj, where we have mainly this concentration of coal, anthracite, coal, lignite, in order to see very clearly if there is a possibility for an extension until 2030. That is the target I have, that by 2030, at least, we will keep mining and continue to have coal-fired power plants, so that all this time we can build other plants, natural gas-fired ones, which will take over the task of generating electricity, on the one hand, and on the other hand, I consider it strategic for Romania to take into account, If we really have these resources, how to further utilise them, we should maintain economic activity in these areas and take into account that they can be exported. We made an analysis together with other energy ministers in the region who still need coal.”

Ivan mentioned to the point Germany and Poland, both of which have resumed coal mining.

„I think that Romania, from an economic point of view, in order to save those areas that have a decades-long tradition in coal extraction, can continue to carry out their activity and people can have a well-paid job at home. In parallel, together with the European Commissioner for Social, Education, Professional Integration, Mrs Roxana Manzatu, we had a clear discussion about financing opportunities for the local economy, in order to diversify the sources of income for the people of that region, and we are working on these two levels.”

According to the minister, his medium and long-term objectives are not to close mines and thermal power plants until they are replaced by natural gas-fired plants.

„That is my vision for the short, medium and long term. One – to save the closure of both mining and thermal power plants; two – to keep them in business until we equip them with gas boilers; three – where there are deposits, I believe that Romania can be a country that produces coal, exports it and without leaving a CO2 footprint on Romania,” said the energy minister.

AGERPRES

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