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CEZ, AES and yet unnamed company set to build Isalnita power group

Three companies, of which CEZ of the Czech Republic and US-based AES Corporation, submitted by the deadline of Wednesday letters of interest for erecting a new 500 MW power group at the Isalnita branch of the Craiova Energy Complex, Mediafax reports.

The general director of the Craiova Complex, Constantin Balasoiu, named two of the companies as CEZ and AES, yet declined to say the name of the third potential investor. In April, the Craiova Energy Complex (CEN) announced it was seeking a company willing to become an associate in a joint venture for the construction at the Isalnita branch of a new 500 MW power group, the equivalent of half of the company's installed power.

The majority stake in new company will be privately held and the enterprise will operate as an independent power operator with a contribution in kind represented by the Isalnita branch assets.

Last year, CEN Craiova generated 4.8 TWh of electric power, up 4.3 per cent from 4.6 TWh in the previous year, and delivered 4.35 TWh, up circa 5 per cent, compared to 4.15 TWh in 2007.

The company has in view investments worth 600 to 700 million euros during 2010-2016, to increase the power-generating capacity in partnership with other companies. CEN Craiova therefore plans to build a power group of nearly 500 MW at Isalnita, Dolj County, and another one, of 150-200 MW, at the Craiova branch.

CEN stakes its bet on a RON 1.15 bln turnover (EUR 298.3 bln) in 2009, up 10 per cent from the RON 1.04 bln (EUR 271.1 M) forecast for this year.

The company, held by the Economy Ministry, has an installed power of 930 MW, and is the third-largest Oltenia-based thermal power plant, after Turceni - 1,980 MW and Rovinari - 1,320 MW.

 

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Tags: power craiova isalnita group company bet

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