Romania to Delay Coal Phaseout Until 2035

Romania has announced plans to extend the operational life of its coal-fired power plants by three years, citing energy security concerns and delays in the construction of replacement gas and renewable energy facilities. Energy Minister Sebastian Burduja confirmed the proposal, emphasizing that the extension is necessary to avoid energy shortages.

The decision comes as Romania struggles to meet its commitments under the National Recovery and Resilience Plan (PNRR) and the Territorial Just Transition Plan, both of which call for a complete coal phaseout by 2032. Burduja, reappointed as Energy Minister in December 2024, argued that the country lacks the infrastructure to replace coal plants immediately, leaving no alternative to secure energy supplies.

Romania’s plan to transition from coal to gas-fired and renewable energy has faced significant setbacks. The restructuring of Complexul Energetic Oltenia (CE Oltenia), the state-owned utility responsible for most of the country’s coal power, includes adding gas-fired power units. However, the process has been hindered by failed tenders.

• The tender for the Ișalnița gas unit received no offers.
• A similar outcome occurred with the tender for the Electrocentrale Craiova plant, which was partially funded by the PNRR.

Burduja stated that new feasibility studies might be needed to restart the tender process, further delaying the replacement of coal facilities.

To extend coal operations, Romania must secure exemptions from the European Commission. The government plans to present a unified proposal to justify the extension. The country’s energy policy, including the approved €2.66 billion restructuring aid for CE Oltenia from the European Commission three years ago, remains under close scrutiny.

CE Oltenia, based in Târgu Jiu, is Romania’s largest coal power producer and its third-largest electricity generator. Its restructuring plan includes transitioning to natural gas and renewable energy, but these delays could impact Romania's energy transition goals and its commitments to the European Union.

Burduja underscored the need to prioritize energy security while continuing efforts to reduce reliance on coal. "The extension is a necessary step to ensure stability while we work toward a more sustainable and diversified energy mix," he said.