The European Commission launched an in-depth investigation at the end of February into the amended restructuring plan for Romania’s state-owned energy company CE Oltenia, in order to determine whether the proposed increase in state aid complies with European Union rules. Opening the procedure does not prejudge the final outcome, but marks a new stage in the assessment of the notified changes.
CE Oltenia holds an important place in Romania’s power system, as it is engaged in both lignite mining and electricity generation. Back in January 2022, the European Commission approved restructuring aid for CE Oltenia worth about EUR 2.66 billion for the 2021–2026 period, concluding that the plan could enable the company to return to long-term viability.
The restructuring approved at the time was not conceived as financial support for maintaining the existing business model, but as a deep transformation of the company. The plan envisaged a gradual reduction in reliance on lignite and a shift toward generation based on natural gas and renewable energy sources. According to the Commission’s decision, the process was meant to include technical and technological changes, organisational and managerial restructuring, environmental protection measures, and financial consolidation.
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In operational terms, this meant closing or placing part of the existing lignite-fired units and mines into reserve, while simultaneously building new capacity. The plan provided for the development of eight solar parks, one small hydropower plant and two gas-fired units, with a total of around 2,060 MW of new capacity, including 1,325 MW from gas, 735 MW from solar power plants and 9.9 MW from hydropower. At the same time, the restructuring also included a reorganisation of operations, workforce reallocation, and investments aimed at meeting stricter environmental standards and carbon dioxide emission costs.
In other words, the goal was for CE Oltenia to evolve from a company almost entirely reliant on lignite into an energy system with a significantly lower share of coal and a greater reliance on gas and renewable sources. It was on that basis that the Commission concluded in 2022 that the restructuring could be compatible with EU state aid rules.
Current situation
The new investigation was opened after Romania notified an amended plan in December 2025, requesting that the total aid be increased to EUR 2.86 billion, while the deadline for completing the restructuring would be extended by a further three years, until the end of 2029. The reason given was delays in implementing replacement projects, primarily the new gas-fired and solar capacity that is expected to take over part of the role currently played by lignite-based facilities.
The European Commission is now assessing whether the extension of the restructuring period is justified and whether the amended plan can still ensure the company’s long-term viability.
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