Romania has received EUR 790 million from the European Union to support the closure of four uncompetitive coal mines in the Jiu Valley, the country’s primary coal region. The European Commission approved the funding under EU state aid rules, ensuring it covers exceptional social and safety costs tied to the coal phaseout.
The four mines—Lonea, Lupeni, Livezeni, and Vulcan—along with the Paroșeni power plant, are operated by Societatea Complexul Energetic Valea Jiului S.A. The financial package will support workers displaced by the closures and fund essential safety measures, including mine shaft security, environmental remediation, and land recultivation.
Jiu Valley is part of the EU’s Coal Regions in Transition Initiative, launched in 2017. This funding aligns with Romania’s pledge to phase out coal by 2032 as per its National Recovery and Resilience Plan. However, recent analyses by Transelectrica, the national electricity transmission operator, suggest coal may vanish from Romania’s energy mix as early as 2026.
The allocated funds will cover eligible costs from October 1, 2023, to December 31, 2032, and an independent consultant will ensure compliance, including limiting coal extraction to public safety needs. Romania has also committed to annual reporting to maintain transparency in the transition process.
