The crux of the problem is that the Oltenia energy complex has received billions of euros in state aid to restructure, closing coal-fired power plants and replacing them with gas and renewable power plants, hotnews.ro specifies.
However, these new plants have not been built. In this context, the Romanian authorities have requested the European Commission to modify the restructuring plan. The European Commission wants to check whether the changes proposed by Romania in the restructuring plan of the Oltenia energy complex comply with the European Union rules.
They got the money, but did not give up coal
In January 2022, the European Commission conditionally approved €2.66 billion in restructuring aid for the Oltenia energy complex, the Commission said in a statement. The support was granted under the EU Guidelines on State Aid for the rescue and restructuring of distressed non-financial enterprises and covered the period 2021-2026.
The plan was aimed at restoring the company’s financial position while phasing out brown coal-fired capacity and developing new natural gas and solar power plants.
However, according to the government memorandum, Oltenia’s energy complex ended 2025 with a loss of more than 1 billion Romanian lei. Consequently, the Bucharest authorities notified Brussels of a modified restructuring plan, which includes both an increase in state aid and an extension of the implementation period.
Romania asks for more money and more time
In December 2025, Romania notified the Commission that it wanted to increase its restructuring aid from €2.66 billion to €2.86 billion. It also requested an extension of the restructuring period by three years, until the end of 2029, the statement said.
According to the Commission, the government argues that the delays are due to difficulties in the realization of new gas and solar power plants, which has indirectly led to a delay in the decommissioning of lignite-fired capacity.
In addition, Romania cites risks to regional energy security in the current geopolitical context.
Based on the information provided by Romania, the Commission decided to initiate an in-depth investigation to assess, inter alia, whether the extension of the restructuring period was justified and whether the revised plan could ensure the long-term viability of the Oltenia power complex.
The Commission is also verifying to what extent the contribution of the company, investors or financial institutions is sufficient to cover the increased costs so that state aid remains proportionate.
