State aid for a new energy complex

The Valea Jiului Energy Complex, the company that will take over the assets of the Hunedoara Energy Complex, will receive state aid in the form of a loan in the amount of 590 million lei, pending the receipt of the agreement for obtaining the state aid.

Also, new investments are taken into account to allow the operation of the Valea Jiului Energy Complex even after 2032.

It is about the construction of a gas group at the Paroseni Thermal Power Station, a microhydro power plant in Valea Jiului and the installation of photovoltaic panels.

The program was announced by the president of the Hunedoara County Council, Laurentiu Nistor, who met in Bucharest with Prime Minister Marcel Ciolacu to discuss solutions for this economic sector.

In a press release issued by the Hunedoara County Council, it is stated that this institution supports the proposal to form an interministerial committee at Government level to ensure the Just transition of Valea Jiului from coal-based energy production to a consolidated development of social conditions. The Jiului Valley can be an example regarding this process, and in this context, legislative regulations are needed in accordance with the specifics and opportunities of each area.

The Hunedoara Energy Complex has been insolvent since 2019, and has debts exceeding one billion euros. For the establishment of the new company, solutions have been sought for more than three years, and the Minister of Energy, Sebastian Burduja, recently stated in Petrosani that he is negotiating with the European Commission to grant state aid for the four remaining mining operations, which will be closed in 2032.

Translated by: Radu Matei