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CE Oltenia to set up subsidiary to take over coal power plants slated for closure

Romanian state-controlled coal power utility Complexul Energetic Oltenia (CE Oltenia) is preparing to establish a subsidiary to take over its lignite-fired thermal power plants slated for closure and the coal mining operations that supply them.

CE Oltenia’s “lignite subsidiary” is envisaged under a restructuring and decarbonization plan approved by the European Commission, according to Profit.ro.

The subsidiary will incorporate and operate the existing lignite-based power generation units and related assets that are not planned to switch to natural gas or renewable energy sources, according to the European Commission’s decision from 2022 approving state aid for CE Oltenia’s restructuring.

The state aid Romania planned to grant CE Oltenia amounted to EUR 2.66 billion.

The subsidiary will operate coal-fired plants that are not planned to switch to gas or renewables

CE Oltenia’s decision to start the separation of lignite-related activities into a separate subsidiary was adopted as early as 2023, but nothing has been done since then.

Now, the company has launched a procedure to select a consultant and intends to award a contract by winter, with a deadline of about six months for the delivery of services.

The new firm is to be created before the end of CE Oltenia’s restructuring period, i.e. before the end of 2026, according to the commission’s decision. It further states that the lignite capacities in question should decrease over time and eventually be phased out, in accordance with the national coal phase-out timetable.

CE Oltenia is building 550 MW of solar power plants at former coal mines

Earlier this year, a joint venture between CE Oltenia and oil and gas company OMV Petrom signed an agreement with contractors to design and install four solar power plants at former coal mines, with a combined capacity of about 550 MW.

According to Profit.ro, Romanian Energy Minister Bogdan Ivan said last month that Romania was in talks with Brussels on a 5-year postponement of the deadline for closing lignite-fired power plants, envisaged by the country’s National Recovery and Resilience Plan.

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First feed-in tariff auction in Federation of BiH draws strong interest

Ahead of a public call for the first auction for feed-in tariffs for solar power plants, the Federation of BiH’s renewable energy authority has launched a survey to assess interest among potential participants.

The auction covers feed-in tariffs (FIT) for small solar installations with an installed capacity of up to 150 kW, according to the Operator for Renewable Energy Sources and Efficient Cogeneration (Operator za OIEiEK).

The survey aims to estimate the number of applications for the upcoming auction and will run from August 22 to September 22.

The quotas for each technology and the amounts of electricity eligible for incentives are set in the decree on quotas for renewable energy sources and efficient cogeneration. The quota for the first auction is set at 12 MW of solar, of which 1.2 MW is reserved for renewable energy communities.

Under the Law on the Use of Renewable Energy Sources and Efficient Cogeneration and the auction rulebook, the first FIT auction is also open to all existing power plants that have not previously received any kind of incentive for electricity production, Operator za OIEiEK noted.

This, along with rising inquiries from investors and electricity producers, is one of the reasons for conducting the survey. Operator za OIEiEK added that its purpose is to gather information and that it will serve solely to estimate the potential number of applications.

The auction will be launched once the e-auction system is operational

Completing the survey doesn’t constitute an application to the public call, nor does it create any legal or formal obligation. Operator za OIEiEK encourages investors to participate in the survey by completing a six-question questionnaire.

Meanwhile, in Mostar, Operator za OIEiEK organized a roundtable to present the auction rulebook.

According to the rulebook, the auction will be conducted through an e-auction system.

Currently, the e-auction system is in the trial phase, with training underway for Operator za OIEiEK staff. Once the system is operational, a public call for the first FIT auction will be launched, according to Operator za OIEiEK.

 

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Bosnia and Herzegovina could set up power exchange in second half of 2026

Bosnia and Herzegovina is not expected to set up a power exchange before the second half of next year, according to economist Vjekoslav Domljan.

In April, after about ten years of discussions, Bosnia and Herzegovina (BiH) finally finished drafting a bill on the electricity regulator, transmission, and power exchange. The regulation is a prerequisite for the country – the last in the Western Balkans – to establish a power exchange, but that does not mean that it will happen soon.

The Council of Ministers of BiH adopted the bill in July. However, the regulation has not yet reached the BiH parliament, economist and university professor Vjekoslav Domljan has told Dnevni avaz.

A power exchange is important for managing electricity surpluses and shortages

It is not certain the law will be passed by the end of the year, he said, adding that, at best, Bosnia and Herzegovina could set up a power exchange in the second half of next year.

He recalled that Croatia’s power exchange, CROPEX, was established in 2014, and Serbia’s SEEPEX in 2016, while Albania, Montenegro, Kosovo*, and North Macedonia followed suit two years ago. A power exchange, he explained, plays a key role in managing electricity surpluses and shortages and, based on supply and demand, in setting electricity prices.

Once an electricity exporter, BiH is becoming an importer

Domljan is convinced that Bosnia and Herzegovina will need foreign assistance to establish a power exchange, as was the case with setting up the Sarajevo exchange, SASE.

In his opinion, citizens will not benefit directly from the power exchange, but they could benefit indirectly. However, he stressed that this will only be possible if citizens are enabled to become prosumers and aggregators are allowed to pool their generation surpluses.

However, there are no prosumers in BiH – or rather, they exist in one political entity, the Republic of Srpska, but not in the other, the Federation of BiH, according to Domljan.

He pointed out that misguided policies are turning BiH from an electricity exporter into an importer. In the first six months of 2025, he added, the country imported four times as much electricity as it did in the same period of 2024.

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Romania considers launching new wind auctions

After completing the second round of wind and solar power auctions, Romania’s Ministry of Energy is considering launching new bidding for renewable energy projects, specifically onshore wind.

The Ministry of Energy has issued a call for expressions of interest for a third auction under the State Aid Scheme, in the form of contracts for difference (CfD), for electricity generation from onshore wind energy.

Given the results of the recently organized tendering for the award of CfDs, as well as the provisions of Government Decision 318/2024, the conditions stipulated in the State aid Scheme authorized by the European Commission Decision C (2024) 1596 final, the ministry is exploring the possibility of launching an additional tender, dedicated exclusively to onshore wind technology, according to the call.

All auction rules will be similar to those approved for the last CfD auction

The tender is to be completed by December 31, 2025, by which time the related contracts are to be signed, according to the update.

The ministry pointed out that all auction rules will be similar to those approved for the last CfD auction.

The expressions of interest should include projects that have recently reached or are about to reach a stage of maturity that would allow them to participate in the tender; projects that could not be submitted in the previous tender due to insufficient time to obtain corporate approvals, including to ensure the necessary sources of financing to cover the obligations regarding the participation/good execution guarantee.

Expressions of interest are to be submitted by August 29

The wind capacity to be auctioned will be determined following an analysis conducted by the ministry, based also on the expressions of interest received, provided that sufficient interest is expressed. Expressions of interest must be submitted by August 29.

Two weeks ago, the ministry and transmission system operator (TSO) Transelectrica conducted the country’s second wind and solar power auction for government support in the form of CfDs.

A total of 2 GW was available for wind, but the authorities selected only 1.26 GW under 23 qualified projects – those with bids below the ceiling of EUR 80 per MWh.

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Northern Lights launches world’s first commercial carbon storage services

Northern Lights has injected the first CO2 volumes below the seabed of the Norwegian North Sea. The firm claims it is the first to offer commercial carbon storage services.

Northern Lights is owned by oil and gas giants Equinor, TotalEnergies, and Shell.

The first CO2 volumes have now been transported through the 100-kilometer pipeline and injected into the Aurora reservoir 2,600 meters below the seabed of the Norwegian North Sea, according to the company.

Northern Lights JV Managing Director Tim Heijn said the company has reached an exciting milestone – the very first CO2 volumes have now been injected and stored safely in the reservoir. “Our ships, facilities, and wells are now in operation,” he said.

From the capture sites to the injection well (photo: Northern Lights)

Northern Lights will transport and store CO₂ from Norway for the remainder of 2025, with CO2 volumes from Denmark and the Netherlands expected to be added in 2026, according to the firm.

The company will transport and store CO2 from two Norwegian industrial sites: Heidelberg Materials’ cement factory in Brevik and Hafslund Celsio’s waste-to-energy plant in Oslo. In addition, commercial agreements have been signed with Yara in the Netherlands, Ørsted in Denmark, and Stockholm Exergi in Sweden.

The operation is part of Longship, the government’s full-scale CCS project

The first phase of Northern Lights is part of Longship, the Norwegian government’s full-scale carbon capture and storage project (CCS).

According to the government’s website, Longship is Europe’s first complete value chain for the capture, transport, and storage of industrial CO2 emissions and the largest climate initiative in Norwegian industrial history.

Longship involves government support for developing the Northern Lights transport and storage infrastructure, according to the website.

CO2 is transported by specially designed ships from the capture sites to an onshore reception terminal in Øygarden. From there, it is transported by a pipeline to the injection well, where it will be pumped into the subsea reservoir.

Heidelberg Materials and Celsio are expected to deliver approximately 400,000 tons of CO2 each annually, according to the website.

The project is expanding

Storage tanks for phase 2 at the reception terminal in Øygarden (photo: Northern Lights)

In March this year, Northern Lights made the final investment decision for the expansion project, which will increase the transport and storage capacity from 1.5 million tons of CO₂ per year to a minimum of five million tons, following the signing of a commercial agreement with Stockholm Exergi.

The expansion was enabled by a EUR 131 million grant from the Connecting Europe Facility for Energy (CEF Energy) funding scheme, the company said.

The expansion leverages existing infrastructure and includes additional onshore storage tanks, pumps, a new jetty, injection wells, and more CO₂ transport ships to enable an increased injection rate and volume.

Photo: Northern Lights
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Serbia launches construction of two transmission lines as part of BeoGrid 2025 project

Serbia has launched works as part of the BeoGrid 2025 project, aimed at improving the power transmission infrastructure in Serbia, the region, and Europe, as well as facilitating electricity offtake from renewable energy power plants in the South Banat region of Vojvodina.

The BeoGrid 2025 project, worth EUR 205 million, comprises six distinct components, according to Radoš Popadić, Assistant Minister of Mining and Energy in charge of the power engineering sector. He attended the start of works in Belgrade’s Surčin suburb together with Jelena Matejić, the general manager of Serbia’s transmission system operator, Elektromreža Srbije (EMS).

“Construction is being launched today on two new high-voltage transmission lines that will connect Belgrade and Novi Sad, with a total value of around EUR 22 million,” he said, adding that work on a substation in Belgrade is also expected to begin soon.

The project is valued at EUR 205 million

The substation will be connected to the Čibuk 1 substation [wind farm Čibuk 1] by a new 83-kilometer transmission line, ensuring a stable transmission of electricity produced from renewable energy sources in South Banat, as well as reducing strain on the existing network, Popadić explained.

Radoš Popadić and Jelena Matejić (photo: Ministry of Mining and Energy/Danilo Mijatović)

Two single-circuit 400 kV transmission lines, intended for connecting transmission line 450 (switching station Mladost – substation Novi Sad 3) to the future 400/110 kV substation Beograd 50, will have a total length of 25.5 kilometers.

EMS General Manager Jelena Matejić said that BeoGrid 2025 is of particular importance for Serbia, but also part of the broader North Continental South East (CSE) Corridor project, which includes doubling the existing 400 kV interconnection between hydropower plant Đerdap 1 and Portile de Fier in Romania.

Matejić: The North CSE Corridor is part of the European ten-year network development plan, TYNDP 2020

The North CSE Corridor project is part of the European ten-year network development plan (TYNDP 2020) and the regional investment plan (RgIP 2020). It is supported by the Romanian transmission system operator, Transelectrica, as well as the German development bank KfW, with a feasibility study.

The North CSE Corridor is of regional importance as it increases the transmission capacity between Serbia and Romania, helping create an integrated European electricity market, Matejić pointed out, adding that BeoGrid 2025 is also important for additional backup power supply for the EXPO 2027 project.

The project aims to enable the transmission of electricity generated from renewable sources in the South Banat region and to ease the load on the 220/110/35 kV Beograd 5 substation, which supplies a large part of Belgrade, particularly parts of New Belgrade and Zemun, EMS stated.

Popadić: The total value of all planned projects is EUR 1 billion

Photo: Ministry of Mining and Energy/Danilo Mijatović

Radoš Popadić recalled that large investments in the transmission network are underway.

“Serbia has recognized the importance of investing in the power transmission system to enable the integration of more renewable energy capacity, increase the exchange of electricity with neighbors, and ensure a secure, stable, and efficient supply to consumers. That is why we launched investments in interconnection with the transmission systems of eight neighboring countries, with EUR 500 million to be invested in priority projects by the end of the decade. The total value of all planned projects will amount to around one billion euros,” said Popadić.

BeoGrid 2025 is financed partly from the Serbian budget, as well as from EMS’ own funds. The project consists of six distinct components, or investments:

  • 400/110 kV substation Beograd 50;
  • Two-circuit 400 kV transmission line between substation Beograd 50 and Čibuk 1, including the installation of a 400 kV bay at switching station Čibuk 1;
  • Single-circuit 400 kV transmission lines for the integration of transmission line 450 (switching station Mladost – substation Novi Sad 3) into substation Beograd 50;
  • Two double-circuit 110 kV transmission lines for the integration of transmission line 104/8 (substation Stara Pazova – substation Inđija 2) into substation Beograd 50;
  • two double-circuit 110 kV transmission lines for the integration of transmission line 1178 AB (substation Beograd 5 – substation Beograd 9) into substation Beograd 50;
  • Double-circuit 110 kV cable between substation Beograd 50 and substation Beograd 49 (Airport).

Photo: Ministry of Mining and Energy/Danilo Mijatović