EnergyMin Ivan wants to terminate contract regarding the Iernut thermal power plant

Energy Minister Bogdan Ivan announces that he wants to terminate the contract regarding the Iernut thermal power plant and execute the performance guarantee.

"From the point of view of the Iernut thermal power plant project, which began in 2016, we are in a very complicated situation, I was on the ground there. The company that won the acquisition is insolvent, two days ago the bankruptcy judge from a European Union member country, where this company is from, gave it another 30-day extension. I have started all the procedures through which I am very determined to terminate this contract and also execute the performance guarantee, because, regardless of where a certain company comes from in Romania, it has no right to block important projects in the development of our country's energy infrastructure," the minister told a press conference held at Victoria Palace, agerpres reports.

He estimated the amount of the performance guarantee at tens of millions of lei, but mentioned that an analysis is underway in this regard.

"We have started the procedure for this. There are different amounts, depending on the value that our colleagues from Romgaz make, regarding the work that was carried out. There is an analysis currently underway to establish very clearly the amounts and dates. (...) I will have an exact figure after this analysis is finished. It is a procedure that lasts approximately 30 days. It has been initiated", he explained.

The minister stressed that the Romanian state is prepared to resort to this measure to protect its interests, so that the power plant can supply energy to the network in northern Romania as soon as possible.

"The Romanian state is prepared to use this measure to protect its interests, to protect its assets and to be able to continue work on this extremely technically complex objective as soon as possible, which will manage to bring energy to the grid in northern Romania, in Transylvania, approximately 400 MW of in-band power, which is critical for Romania's energy system today. So, I am doing everything legally in my power, together with my colleagues, to finally finish this project and, after ten years of delays, appeals, legal tricks, to finally produce energy in Iernut," the minister said.

He estimated that the unfinished work represents less than 10% of the entire project and that it could be completed in six to nine months.

"It's a very complicated segment, the final remaining work required there is less than 10%. Normally, according to estimates from the construction site, this work should last approximately six to nine months - bureaucratic procedures and legal frills take longer than the actual work on this site. I estimate approximately nine months in an optimistic scenario," he added.

Bogdan Ivan also specified that Romania occupies one of the top four places in the EU in terms of electricity prices for end consumers.

He mentioned that there are still projects for the production of electricity, some of which were started 10 or 30 years ago. In this regard, he referred to Hidroelectrica projects, started as early as 1985, completed in a proportion of over 70-80%, but which are blocked following appeals regarding environmental permits.

"We have systemic delays in many projects that were supposed to replace the band electricity production capacities at the Oltenia Energy Complex, which are three or even four years late, and there we have a very clear focus. Together with colleagues from the ministry, we have organized teams, responsible for weekly physical reports and financial reports, so that all these projects can enter production. From the point of view of Hidroelectrica projects, some of them started even in 1985, are currently over 70-80% completed, but due to some activities in the area of appeals regarding environmental permits, they are blocked and there we started a very pragmatic discussion, including with the Ministry of Environment, to see which situations can be unblocked and which situations still require additional permits. I believe very much in environmental protection, but at the same time I believe very much that we need cheap electricity," he said.