Feasibility Study On Northern Combined Cycle Power Plant Project in Romania

FY2018 Study on Business Opportunity of High-quality Energy
Infrastructure to Overseas
Feasibility Study on the necessary of Individual Infrastructure
improvement etc. for realizing the Action Plan
Feasibility Study on
Northern Combined Cycle Power Plant Project in Romania
Final Report
February 2019
Prepared for:
The Ministry of Economy, Trade and Industry
Prepared by:
The Kansai Electric Power Company, Inc.

Reproduction Prohibited
FY2018 Study on Business Opportunity of High-quality Energy Infrastructure to Overseas The Ministry of Economy, Trade and Industry
February 2019
Feasibility Study on Northern Combined Cycle Power Plant Project in Romania Prepared by:
Preface
This report is a summary of the result on “FY2018 Study on Business Opportunity of High-quality Energy
Infrastructure to Overseas (Feasibility Study on Northern Combined Cycle Power Plant Project in Romania)”
entrusted by the Kansai Electric Power Company, Inc. from the Ministry of Economy, Trade and Industry as a
project in FY2018.
This study “Feasibility Study on Northern Combined Cycle Power Plant Project in Romania" is to investigate
the environmental suppression effect due to update of power plants corresponding to the deterioration of the
power infrastructure in Romania and the emission regulations of EU joined in 2007. Specifically, the survey was
conducted on updating to gas-fired combined cycle power plant fueled by natural gas which is expected to be
medium to long-term stable supply in Romania and with low environmental impact in regards to aged coal-fired
power plants installed in the Deva area where it is located in north of Romania.
In this study, the study team also investigated the possibility of utilizing superior Japanese finance tools,
including buyers' credits.
The study team hope that this report will help to realize the project mentioned above, and additionally this
report will be a reference for exporting high-quality infrastructure in Japan.
February 2019
Project Site Map
Romania
Hunedoara County
Deva
Capital City
Bucharest
Scale 1:5,000,000
(Source: prepared by the study team)

List of Abbreviation
Abbreviation Full Name

aFRR Automatic Frequency Restoration Reserve
AHT Average Highest Temperature
Al2O3 Aluminum Oxide
ALT Average Lowest Temperature
ANAP National Public Procurement Agency
Agentia Nationala pentru Protectia Mediului
ANPM
(Romanian National Environmental Protection Agency)
Autoritatea Na ional de Reglementare
ANRE
(Romanian Energy Regulatory Authority)
ANRGN Romanian Natural Gas Regulatory Authority
API American Petroleum Institute
ARA Amsterdam/Rotterdam/Antwerp
ARCE Romanian Agency for Energy Conservation
Agen ii Regionale sau Provincii Autonome pentru Protec ia Mediului
ARPA
(Romanian Regional Environmental Protection Agency)
As Arsenic
AVR Automatic Voltage Regulator
B/C buyer’s credit
B/L bank-to-bank loan
Ba Barium
BAT best available technology
bcm Billion Cubic Meter
BCPs Boiler Circulation Pumps
BOD5 Biochemical oxygen demand
BOP Balance of Plant
Ca2+ Calcium
CANDU Canada Deuterium Uranium
CaO Calcium Oxide
CAPEX Capital Expenditure
CCPP Combined Cycle Power Plant
CCR Central Control Room
CCTV Closed circuit television
Cd Cadmium
CEH Complexul Energetic Hunedoara (Hunedoara Energy Complex)
CFPP Coal fired Power Plant
CFR Cost & Freight
C6H5OH Water-frenzied phenols
CHP Combined Heat and Power
CIF Cost, Insurance & Freight
CIS Commonwealth of Independent States
Cl-; Cl2 Chlorine
CN- Cyanide
Co Cobalt
CO Carbon monoxide
CO2 Carbon Dioxide
COD Commercial Operation Date
COD(c) Chemical Oxygen Demand (chemical)
National Electricity Company
CONEL
Romanian National Electricity Company
Cr Chromium
Cr6+ Hexavalent Chromium
Cu Copper
o
C Degree Celsius
daN deca newton
dBA decibel adjusted
DCS Distributed Control System
ECAs Export Credit Agencies
EDG emergency diesel generator
EEE Electrical and Electronic Equipment
EHS Environment, Health and Safety
EIA Environmental Impact Assessment
EIRR Equity Internal Rate of Return
EN European Norm
EOH Equivalent Operating Hours
EPA Environmental Protection Agency
EPC Engineering, Procurement and Construction
ESIA Environmental and Social Impact Assessment
EU European Union
EU ETS EU Emission Trading Scheme
EUR euro
F/S Feasibility Study
FCR Frequency Containment Reserve
FDI Foreign Direct Investment
Fe2+ ; Fe3+ Total Iron
Fe2O3 Ferric Oxide
FIRR Financial Internal Rate of Return
FOB Free On Board
GC Grid Code
Gcal Giga calorie (1,000,000,000 calorie)
GD Governmental Decision
GDP Gross Domestic Product
GEC Green Energy Certificate
GEPP Gas Engine Power Plant
GFPP Gas fired Power Plant
GHG Greenhouse Gas
GNI Gross National Income
GST Generator Step-up Transformer
GT Gas Turbine
GW Giga Watt (1,000,000,000 W)
GWh Giga Watt hour (1,000,000,000 Wh)
HCl Hydrochloric
HF Hydrogen Fluoride
Hg Hydrargyrum (Mercury)
HP Home Page
HRSG Heat Recovery Steam Generator
IEA International Energy Agency
IFC International Finance Corporation
IMF International Monetary Fund
IPB Isolated Phase Busduct
IPP Independent Power Producer
IPPC Integrated Pollution Prevention and Control
IRR internal rate of returns
ISO International Organization for Standardization
JBIC Japan Bank for International Cooperation
JETRO Japan External Trade Organization
JMA Japanese Meteorology Agency
JPY Japanese Yen
K2O Potassium Oxide
kcal kilo calorie (1,000 calorie)
kg kilo gram (1,000 g)
km kilo meter (1,000 m)
km2 square kilo meter (1,000,000 m2)
KPI Key Performance Indicator
kV Kilo Volt (1,000 Volt)
kW kilo Watt 1,000 W
kWh Kilo Watt hour (1,000 Wh)
LCC Life cycle cost
LHV Lower Heating Value
LNRCA Laboratorului National de Referinta pentru Calitatea Aerului
LTPM Long Term Parts Management
LTSA Long Term Service Agreement
m meter
m3 cubic meter
mb Milli bar
mFRR Manual Frequency Restoration Reserve
mg milligram (1/1,000 g)
Mg2+ Magnesium
micro
g microgram (1/1,000,000 g)
MgO Magnesium Oxide
mm millimeter (1/1,000 m)
Mn; Mn2+; Mn3+ Manganese
MOE Ministry of Energy
MOF Ministry of Finance
MPa Mega Pascal (1,000,000 Pascal)
MW Mega Watt (1,000,000 W)
MWh Mega Watt hour (1,000,000 Wh)
Na2O Natrium Oxide
NATO North Atlantic Treaty Organization
NBR National Bank of Romania
NEMS National Energy Weather Model
NEXI Nippon Export and Investment Insurance
NH4+ Ammonium
Ni Nickel
NIS National Institute of Statistics
Nm3 Normal cubic meter
NO Nitric Oxide
NO2 Nitric Dioxide
NO2- Nitrite
NO3- Nitrate
NOx Nitrogen Oxides
NPP Nuclear Power plant
NPV net present values
O2 Oxygen
O3 Ozone
O&M Operation and Maintenance
ODAF Oil-directed Air-forced type
OECD Organization for Economic Co-operation and Development
OEL Over Excitation Limiter
OEM Original Equipment Manufacturer
OJT On-the-Job Training
ONAF Oil-natural Air-forced type
ONAN Oil-natural Air-natural type
Operatorul Pie ei de Energie Electric i Gaze Naturale
OPCOM
(Romanian Gas and Electricity Market Operator)
OPEX Operating Expense
P2O5 Phosphorus Pentoxide
Pb Plumbum (Lead)
pH power of hydrogen
PM Particulate Matter
PO4- Total phosphorus
PO43- Soluble orthophosphates
PSHPP Pumped Storage Hydro Power Plant
PSS Power System Stabilizer
QMS Quality Management System
R&D Research and Development
RENEL Regia Na ional de Electricitate (National Electricity Authority)
RH relative humidity
Re eaua Na ional de Monitorizare a Calit ii Aerului
RNMCA
(National Network for Monitoring Air Quality)
S2- Sulfides and hydrogen sulfide
SCI Site of Community Importance
Se Selenium
SiO2 Silicon Dioxide
SNN Societatea Nationala Nuclearelectrica
SO2 Sulfur Dioxide
SO3 Sulfur Trioxide
SO32- ; SO42- Sulfates
SOx Sulfur Oxide
ST Steam Turbine
TiO2 Titanium Dioxide
TJ TeraJoule
TOE ton oil equivalent
TSS Total Suspended Solids
TWh Tera Watt hour (1,000,000,000,000 Wh)
UAT unit auxiliary transformer
UEL Under Excitation Limiter
UK United Kingdom
UN United Nation
UNCTAD United Nations Conference on Trade and Development
UPS uninterruptible power supply
USA United States of America
US$ United States dollar
VAT Value Added Tax
WB World Bank
Zn Zinc
Table of Contents
Preface
Project Site Map
List of Abbreviations
Table of Contents
Summary
(1) Background and Necessity of the Project······································································ Summary-1
1) Background of the Project ····················································································· Summary-1
2) Necessity of Project ····························································································· Summary-1
(2) Basic Policy on Project Content Determination ······························································Summary-2
1) Basic Policy of Project Content Determination ·····························································Summary-2
2) Conceptual Design and Construction of Applicable Equipment ········································· Summary-2
(3) Project Outline····································································································· Summary-3
1) Scope of Project ································································································· Summary-3
2) Project Construction Cost ······················································································ Summary-4
3) Preliminary Financial and Economic Analysis ····························································· Summary-5
4) Study of Environmental Social Aspects······································································ Summary-9
(4) Project Schedule································································································· Summary-10
(5) Feasibility on Buyer's Credit Request / Implementation··················································· Summary-11
1) Issues on Buyer's Credit Request ··········································································· Summary-11
2) Feasibility on Buyer's Credit Request / Implementation················································· Summary-11
(6) Advantages of Japanese Companies on Technical Aspects ··············································· Summary-12
(7) Detailed Action Plan and Task to realize the Project ······················································ Summary-13
(8) A Map showing the Project Site Location in the Survey Country········································ Summary-14
Chapter 1 Background and Necessity of the Project

(1) Project Background ········································································································· 1-1
(2) Existing Equipment ········································································································· 1-2
1) Plant Site ··················································································································· 1-2
2) General Data ··············································································································· 1-2
3) Power Generation ········································································································· 1-3
4) Fuel Source················································································································· 1-4
5) District Heat System ······································································································ 1-5
(3) Necessity of the Project ···································································································· 1-6
1) EU Directive ··············································································································· 1-6
Table of Contents - 1
2) Necessity of the Project ·································································································· 1-6
3) Objectives of the Investment ···························································································· 1-7
(4) Present Situation of the Plant ······························································································ 1-8
1) Electricity & Heat Generation ··························································································· 1-8
2) Fuel Coal ··················································································································1-10
a) Specifications ··········································································································1-10
b) Coal Price Index·······································································································1-10
c) Coal Production········································································································1-11
d) Employees involved in the Mining Activity·······································································1-11
(5) Scope of Study··············································································································1-12
1) Study Contents············································································································1-12
2) Study Schedule ···········································································································1-13
3) Executing Organization ·································································································1-15
Chapter 2 Overview of the Host Country and Sector

(1) Economic and Fiscal Situation ···························································································· 2-1
1) General Information ······································································································ 2-1
a) Geography ··············································································································· 2-1
b) Administrative Divisions······························································································ 2-2
c) Population ··············································································································· 2-3
d) Language ················································································································ 2-3
e) Ethnic Structure········································································································· 2-3
f) Religion ·················································································································· 2-3
g) Currency················································································································· 2-4
h) Climate··················································································································· 2-5
i) Politics···················································································································· 2-8
j) Military ··················································································································· 2-8
k) Foreign Relations······································································································· 2-8
2) Economic and Fiscal Condition ························································································· 2-9
a) Economic Magnitude ·································································································· 2-9
b) Economic and Fiscal Overview ······················································································ 2-9
c) Labor Cost and Unemployment Rate ···············································································2-12
d) Inflation·················································································································2-13
e) Foreign Direct Investment (FDI) ····················································································2-15
f) Trade·····················································································································2-16
g) Trade with Japan ······································································································2-19
h) Tax ······················································································································2-21
i) Natural Resources······································································································2-23
j) Natural Gas ·············································································································2-25
k) Coal ·····················································································································2-26
(2) Overview of the Power Sector····························································································2-29
1) Brief History of Power Sector in Romania ···········································································2-29
2) Organization in Power Sector ··························································································2-29
a) Ministry of Energy ····································································································2-29
b) Romanian Energy Regulatory Authority (Autoritatea Na ional de Reglementare: ANRE) ···············2-30
c) Electricity Market ·····································································································2-30
d) Electricity Generation ································································································2-31
e) Hydro Power Plant Operator (Hidroelectrica)·····································································2-33
f) Nuclearelectrica (SNN) ·······························································································2-33
g) Oltenia ··················································································································2-34
h) Hunedoara ··············································································································2-34
i) Transmission System Operator ······················································································2-35
j) Distribution ·············································································································2-36
3) Current Situation of Power Sector ·····················································································2-38
a) Electricity Consumption per Capita ················································································2-38
b) Fuel Resources·········································································································2-38
c) Gas Turbine Combined Cycle ·······················································································2-40
4) Energy Strategy in Romania ····························································································2-41
a) Nuclear Energy ········································································································2-42
b) Natural Gas·············································································································2-42
c) Coal······················································································································2-43
d) Hydro ···················································································································2-44
e) Renewable Energy ····································································································2-44
f) Conclusion··············································································································2-45
(3) Matters relevant to the Deva Project ····················································································2-47
1) Relevant Matters from the Viewpoint of EU Environmental Regulation ········································2-47
2) Relevant Matters of the Future Fuel Supply··········································································2-48
a) Coal······················································································································2-48
b) Natural Gas·············································································································2-49
3) Relevant matters of Location ···························································································2-50
a) From the Viewpoint of Power Supply System ····································································2-50
b) From the Viewpoint of Introduction and Expansion of Renewable Energy ··································2-52
c) From the Viewpoint of Cost Reduction ············································································2-53
d) From the Viewpoint of Heat Supply················································································2-53
4) Current Situation of Deva Power Plant ···············································································2-54
5) Relevant matters of Power Demand and Analysis···································································2-55
a) Power Demand and Future Assumption ···········································································2-55
b) Influence of Renewable Energy·····················································································2-55
c) Effect of Coal-fired Power ···························································································2-55
Chapter 3 Study on the Power Plant

(1) General Explanations on the Power Plant ··············································································· 3-1
1) Introduction ················································································································ 3-1
2) Power Block Configuration (2on1, 1on1) ············································································· 3-1
a) CCPP Configuration ··································································································· 3-1
b) Main Characteristics of CCPP Shaft Configuration······························································· 3-2
c) Recommended Shaft Configuration at the Deva CFPP ··························································· 3-4
3) Gas Turbine ················································································································ 3-5
a) Dual Fuel System······································································································· 3-5
4) Condenser Cooling System ······························································································ 3-5
a) Overview ················································································································ 3-5
b) Condenser Cooling System of Deva CFPP ········································································· 3-5
c) Condenser Cooling System of the CCPP to be newly constructed ·············································· 3-7
5) Plant Water Supply and Water Treatment System ··································································· 3-8
6) Fuel Gas Supply System ································································································· 3-8
a) Equipment Specifications of the Deva CFPP······································································· 3-8
b) Equipment Specifications required for CCPP to be newly constructed ········································ 3-8
7) Transmission Line for Generator ······················································································· 3-9
a) Transmission System of the Electrical Power generated by Deva CFPP······································· 3-9
b) Transmission System of the Electrical Power generated by CCPP to be newly constructed ················ 3-9
8) Candidate for Existing Equipment to be Reused ····································································3-10
a) Significance of Reusing Existing Equipment ·····································································3-10
b) Equipment subject to Reuse Study··················································································3-10
c) Candidate for Reuse···································································································3-10
d) Equipment not recommended for Reuse ···········································································3-13
(2) Supply Plan of Natural Gas and Water··················································································3-14
1) Supply Plan of Natural Gas ·····························································································3-14
a) Demand of Natural Gas·······························································································3-14
b) Supply of Natural Gas ································································································3-14
2) Fuel Gas Supply System ································································································3-14
3) Supply of Plant Water ···································································································3-15
4) Water Treatment System ································································································3-15
(3) District Heating·············································································································3-16
1) Equipment Specification of District Heat Supply ···································································3-16
a) Possibility of Reuse of Existing Heat Exchanger ·································································3-16
b) Heat Supply Price ·····································································································3-16
2) Demand Record of District Heat Supply and Future Prospects····················································3-16
3) District Heat Supply by CCPP to be newly constructed ····························································3-17
Chapter 4 Conditions of Land and Climate

(1) Site of the power plant······································································································ 4-1
1) Candidate Site of Installation for CCPP to be newly constructed ················································ 4-1
2) Characteristics of Each Candidate Site················································································· 4-1
(2) The Climate of the Power Plant Site······················································································ 4-4
1) Climate······················································································································ 4-4
2) Water Intake Temperature of the River ················································································ 4-6
3) Climate Data ··············································································································· 4-6
a) Air Temperature ········································································································ 4-6
b) Precipitation and Atmospheric Pressure ············································································ 4-7
c) Relative Humidity / Wind Speed····················································································4-10
4) Natural Disasters ·········································································································4-11
(3) Characteristics of Land ····································································································4-13
1) Soil ·························································································································4-13
2) Terrain ·····················································································································4-14
3) Civil Works ···············································································································4-19
a) Layer ····················································································································4-19
b) Foundation work ······································································································4-19
Chapter 5 Basic Design of the Power Plant Equipment

(1) Basic Design of CCPP Equipment························································································ 5-1
1) Project Outline············································································································· 5-1
2) Operation Requirements·································································································· 5-1
a) Plant Requirements····································································································· 5-1
b) Start-up Time Schedule Requirements ·············································································· 5-2
c) Service Life Time ······································································································ 5-2
d) Start-up and Shutdown Time ························································································· 5-3
e) Compliance with the Grid Code······················································································ 5-3
3) Plant Performance········································································································· 5-3
a) Atmospheric Condition ································································································ 5-3
b) Fuel Gas Properties ···································································································· 5-3
c) Bottoming System Type······························································································· 5-4
4) Specification of Power Generation Equipment ······································································· 5-5
a) GT and auxiliary systems ····························································································· 5-5
b) HRSG and HRSG Auxiliaries ·······················································································5-17
c) ST and ST Auxiliaries ································································································5-23
d) Generator and Generator Auxiliaries ···············································································5-26
e) Control System of the Power Plant ·················································································5-35
f) Fuel Gas Supply System ······························································································5-37
g) Common equipment ··································································································5-38
(2) Alternative Plan ············································································································5-41
1) Characteristics of gas engine ···························································································5-41
2) Comparison of Gas Engine Power Plant (GEPP) and CCPP·······················································5-42
a) Basic specification of power plant equipment·····································································5-43
b) Construction cost ······································································································5-43
c) District heat supply····································································································5-43
d) Ancillary················································································································5-43
e) Environmental Aspect ································································································5-44
f) Required site area······································································································5-44
Chapter 6 Project Implementation and O&M Organization

(1) O&M Organization ········································································································· 6-1
1) Recommended O&M Organization of CCPP ········································································· 6-1
a) Matters to consider in building the O&M Organization of CCPP··············································· 6-1
b) Study of Organization based on CCPP O&M in Other Countries··············································· 6-1
c) Recommended O&M Organization·················································································· 6-3
(2) Recommended O&M System ····························································································· 6-4
1) Operation of an Ideal Thermal Power Plant ··········································································· 6-4
2) Current Status of Deva CFPP···························································································· 6-5
3) Construction of Recommended O&M System········································································ 6-5
(3) Support for building O&M Systems······················································································ 6-6
1) GT Training ················································································································ 6-6
2) LTSA Support by GT manufacturer and Construction of CCPP Remote Monitoring System················· 6-6
3) Support for Quality Control of Power Plant and KPI System Establishment····································· 6-6
(4) Possibility of Japanese Companies to participate in O&M···························································· 6-7
Chapter 7 Project Plan

(1) Project Implementation Program·························································································· 7-1
1) Contract with EPC Contractor··························································································· 7-1
2) Construction Phase········································································································ 7-1
(2) Project Schedule············································································································· 7-1
1) Feasibility Study··········································································································· 7-1
2) Romanian Domestic Approval ·························································································· 7-1
3) EIA ·························································································································· 7-2
4) Contract····················································································································· 7-2
5) From EPC Commencement to Commercial Operation ······························································ 7-2
Chapter 8 Economic and Financial Analysis

(1) Project Cost Estimation ···································································································· 8-1
1) Construction Cost ········································································································· 8-1
2) O&M Cost·················································································································· 8-2
(2) Preliminary Financial and Economic Analysis ········································································· 8-3
1) Methodology of Economic and Financial Analysis ·································································· 8-3
2) Scenarios ··················································································································· 8-3
3) Assumptions ··············································································································· 8-5
a) Price Outlook ··········································································································· 8-5
b) Primary Assumptions ·································································································· 8-8
4) The Results of Analysis ·································································································· 8-9
a) FIRR·····················································································································8-12
b) EIRR ····················································································································8-12
(3) Sensitivity Analysis ········································································································8-13
(4) Conclusion ··················································································································8-14
Chapter 9 Evaluation of Environmental and Social Impacts

(1) Environmental and Social Baseline Conditions········································································· 9-1
1) Overview ··················································································································· 9-1
2) Site Location ··············································································································· 9-1
3) Environmental and Social Baseline Data ·············································································· 9-4
a) Meteorology············································································································· 9-4
b) Geography and Topography ·························································································· 9-5
c) Main Habitats and Vegetation ························································································ 9-6
d) Air Quality ·············································································································· 9-7
e) Water Quality ··········································································································9-10
f) Noise·····················································································································9-11
g) Soil ······················································································································9-11
h) Land Use and Social Infrastructure ·················································································9-13
(2) Environmental Improvements arising with Project Implementation ················································9-15
1) Air Quality Improvement ·······························································································9-15
a) Current Air Emission Concentration ···············································································9-15
b) Emission Specification of New Equipment ·······································································9-16
c) Simulation Theory·····································································································9-17
d) Simulation Result – Dispersion from 1 Unit ······································································9-18
e) Simulation Result – Comparison between Baseline and Future Scenario·····································9-19
2) CO2 Emissions Reduction ·······························································································9-22
a) Calculation Method ···································································································9-22
b) Calculation Conditions ·······························································································9-23
3) Water Effluent ············································································································9-24
4) Waste Generation and Processing ·····················································································9-25
(3) Summary of the Preliminary Assessment of the Potential Environmental and Social Impacts of the Project
(JBIC Checklist for Thermal Power Plants) ················································································9-27
(4) Overview of Romanian Environmental Legal Standards and Requirements ······································9-36
1) ESIA Legislation ·········································································································9-36
a) Screening ···············································································································9-38
b) Scoping ·················································································································9-38
c) EIA review ·············································································································9-38
d) Information Disclosure and Public Consultations ································································9-38
e) Final Decision··········································································································9-38
f) Monitoring & Control·································································································9-39
g) Typical EIA Report Content·························································································9-39
2) Other Legislation related to Environment, Health and Safety (EHS)·············································9-39
a) Air Quality and Pollution Prevention···············································································9-39
b) Water Quality and Effluents ·························································································9-41
c) Noise ····················································································································9-44
d) Waste Management ···································································································9-44
e) Soil ······················································································································9-44
(5) Conclusions and Considerations regarding the Project Implementation ···········································9-46
Chapter 10 Implementing Organization

(1) Complexul Energetic Hunedoara (CEH) ···············································································10-1
1) General Corporate Information·························································································10-1
2) Financial Conditions of CEH···························································································10-2
3) Insolvency Procedure of CEH ··························································································10-4
(2) Organizational Structure for Project Implementation in Romania ··················································10-5
1) Project Implementation Body ··························································································10-5
2) Operation and Maintenance Organization of Power Plant ·························································10-5
(3) Evaluation of the Capacity of the Romanian Executing Body ······················································10-6
1) Capacity to Repay Debt ·································································································10-6
2) Capacity of Equipment Operation and Maintenance ································································10-6
a) Maintenance············································································································10-6
b) Operation ···············································································································10-6
Chapter 11 Technological Advantages of Japanese Companies

(1) Participation Forms of assumed Japanese Companies (Investment, Supply of Equipment and Materials,
Operation Management of Equipment, etc.) ···········································································11-1
1) Supply of Equipment ····································································································11-1
2) Collaboration with Third Country ·····················································································11-1
3) Management of Equipment ·····························································································11-1
(2) Advantages of Japanese Companies in Project Implementation ····················································11-2
(3) Strategy Necessary for Japanese Companies to Receive Orders ····················································11-2
Chapter 12 Financial Arrangements

(1) Funding Option ·············································································································12-1
1) Buyer’s Credit ············································································································12-1
2) Bank Loan·················································································································12-2
(2) Feasibility of Fund-Raising ·······························································································12-3
1) B/C ·························································································································12-3
a) To Government of Romania ·························································································12-3
b) To CEH ·················································································································12-3
c) To the Third Organization····························································································12-3
2) B/L ·························································································································12-4
(3) Conclusion ··················································································································12-5
Chapter 13 Action Plan for Project Implementation and Challenges

(1) Effort toward Implementation of the Project···········································································13-1
1) Progress implemented by the Authorities concerned································································13-1
(2) Presence or Absence of Legal and Financial Constrains ·····························································13-2
1) Practical Aspects ·········································································································13-2
a) Implementing Organization ··························································································13-2
b) Licensing Procedure ··································································································13-2
2) Financial Aspects·········································································································13-5
(3) Strategic Significance······································································································13-6
1) Life Cycle Cost ···········································································································13-6
2) Capacity Building of Human Resource············································································13-6
a) GT Training ············································································································13-6
(4) Action Plan and Challenges·······························································································13-8
1) Site Selection and Specification of the Plant ······································································13-8
a) Site Selection········································································································13-8
b) Specification of the Plant ·························································································13-8
2) Implementing Organization and Financial Arrangements·······················································13-9
3) EPC Contract ··········································································································13-9
4) Conclusion ··········································································································· 13-11
Summary
(1) Background and Necessity of the Project
1) Background of the Project
Romania country became the member of the EU in January 2007, the electricity market was completely
liberalized in July 2007 and became a country with advanced power market in the Balkans region. According to the
generation capacity standards, it has 31% of hydropower, 23% of coal fired power and 18% of natural gas fired
power. In terms of equipment capacity, it owns over 20 GW of electric power infrastructure, while the demand is in
excess of supply of 9 GW.
However, thermal power plants, which are the main sources of power supply, are aging, and many of the power
plants do not meet EU emission regulations (Romania joined EU in 2007). Introduction of power generation
facilities with reduced environmental impact by renewal of power plants is an urgent issue.
Under these circumstances, with the aim of responding to the reduction of domestic coal output and
strengthening of the EU regulations on emission gas, Ministry of Energy in Romania has formulated plans to
update some facilities of the Deva coal thermal power plant located in the northwest of the country to a natural
gas-fired combined thermal power plant (CCPP). When Prime Minister Shinzo Abe visited Romania in January
2018, he received a request from Deputy Prime Minister Romania on support concerning this plan by Japanese
companies and governments.
2) Necessity of Project
Deva coal-fired power plant has the following problems.

I) Compliance with EU environmental regulations
II) Deterioration of facilities, increase of maintenance and maintenance expenses
III) Fuel supply uncertainty
IV) Partial load operation
On the other hand, the Deva coal-fired thermal power plant still plays the following important role.
I) System operation service
The Deva coal-fired power plant is located in the central western part of Romania, and only small power
plants scatters around Deva-coal-fired power plant. Particularly, with the increase in recyclable energy
requiring power quality control, the power plant plays an important role in the system operation service.
II) Regional heating in Deva area
It is the most economical system because it supplies hot water by using exhaust heat from the power plant
and it is the only regional heating system in the area.
Given the current situation, it is imperative to renew the aged facilities.
Summary-1
(2) Basic Policy on Project Content Determination
1) Basic Policy of Project Content Determination
a) Study of Project Contents and Technical Aspects

Obtain and analyse data on general power sector of Romania country.
We will investigate the current state of the candidate site for power plant construction and the properties of
natural gas used as fuel and formulate the optimum CCPP specification.
Based on the above specifications, outline processes are formulated.
b) Economic and Financial Analysis
To accumulate construction costs, summary construction costs according to the specifications that have
been formulated are integrated.
For the purpose of studying the feasibility, conduct economic and financial analyses and consider raising
financially available projects.
c) Environmental and Social Considerations
Investigate the impact of this project on the social environment (such as land acquisitions due to the
construction of the project, environmental improvement effect by the project, other social environment
impact).
Investigate licensing and approval relationships in Romania (environmental assessment, related laws,
necessary licenses, etc.).
2) Conceptual Design and Construction of Applicable Equipment
The proposed power generation equipment is highly efficient CCPP and has construction and operational
record.
The main equipment configuration of the power plant equipment is as follows.
Gas turbine
Steam turbine
HRSG
Generator
Relative equipment (fuel gas compressor, fuel gas depressurization station, etc.)
Electrical and control equipment
Summary-2
(3) Project Outline
1) Scope of Project
The main equipment of the highly efficient CCPP consists of gas turbine, exhaust heat recovery boiler, steam
turbine and generator equipment. In addition, it consists of the following facilities.
Gas turbine auxiliaries (air intake facility, lubricating oil facility, etc.)
Steam turbine auxiliaries (lubricating oil system, condenser, boiler feed pump, condensate pump, circulating
water pump, deaerator, condenser washing facility, etc.)
Generator auxiliaries (sealing oil devices, cooling devices, etc.)
Electrical equipment
Control facility
Compressed air facility
Fuel gas compressor facility
Cooling water facility
Disaster prevention equipment
District heat supply equipment
Table 1 shows the outline of the current scope of the construction plan of the CCPP subject to this project.
Table 1 Scope of Implementation of this Project

Item Contents
Area Hunedoara county, Deva
Power output 350 MW class
Scope of work CCPP construction work complete set
Civil work
Detail design of CCPP
Production, transportation and installation work of CCPP facilities (GT, GT
auxiliaries, HRSG, ST, ST auxiliaries, generators, generator auxiliary, electrical
equipment, control equipment, environmental equipment, compressed air
equipment, cooling water equipment, disaster prevention equipment)
Commissioning of CCPP
Out of scope work The following matters shall be implemented by the project implementing entity.
Purchase of land outside the Deva coal-fired power plant accompanying this
project (when necessary)
Summary-3
The properties of natural gas used as fuel gas are confirmed by field survey as follows.
Chemical composition vol. %

Methane 98.9594
Ethane 0.3788
Propane 0.1052
Isobutane 0.0173
Normal butane 0.0146
Isopentane 0.0041
Normal pentane 0.0024
Azole 0.4031
Carbon dioxide 0.1143
total 100.00
Net heating value (LHV)* 49,509 kJ/kg
* calculated by GT-Pro from above chemical component at supply temperature 25.0 ° C
2) Project Construction Cost
The estimation result for the CCPP to be newly constructed is shown in Table 1. The cost is shown in Table 8-1,
which the estimate is based on reusing some equipment of Deva coal thermal power plant.
Table 2 Estimation of the CCPP to be newly constructed

CCPP to be newly constructed:350MW class **
Item Total Cost Breakdown
Foreign Local
a) Construction Cost JPY EUR Currency Currency
EUR EUR
Power generation equipment/ 14,938,968,086 116,292,761 116,292,761 0
District Heat supply equipment
Erection 3,457,862,744 26,917,817 6,521,481 20,396,336
Civil/Buildings 3,156,998,856 24,575,735 0 24,575,735
Engineering 1,532,311,805 11,928,319 11,928,319 0
Admin Cost 6,798,148,673 52,920,354 52,920,354 0
Subtotal 29,884,290,164 232,634,985 187,662,915 44,972,070
b) Reserve Cost * 3,509,786,056 27,322,015 22,040,231 5,281,783
Total 33,394,076,220 259,957,000 209,703,146 50,253,854
*Reserve cost is 11.7% of construction cost. This includes consulting cost, various procedures cost, land acquisition cost
and finance costs, etc.
** These costs are rounded to integers.
Summary-4
3) Preliminary Financial and Economic Analysis
In this report, economic and financial analysis based on the two scenarios, as shown in table 3, will be carried out.
Scenario 1 is defined based on “Energy Strategy to 2030 with a 2050 Prospective”. Scenario 2 is defined based on
the consideration of the current business situation. The main assumptions used in this analysis are shown in Table
4, Table 5 and Table 6. The long-term forecast of CO2 price, wholesale gas, electricity and ancillary services prices
are cited from the study by Tractebel Engie.
Table 3 Outline of Each Scenario

Scenario Outline
Scenario 1 a) Cernavoda NPP
Based on Energy Strategy Units 1 and 2 are lifetime extension.
Units3 and 4 are commissioned in 2026 and 2036 (~2×700 MW).
b) Tarnita Lapnstesti pumped storage Hydro Power Plant (PSHPP)
PSHPP is commissioned in 2028. (1000MW)
Considering the Current Situation Units 1 and 2 are lifetime extension.
b) Tarnita Lapnstesti PSHPP
PSHPP are commissioned in 2028. (1000MW)
Summary-5
Table 4 Summary of the Common Assumptions
Item Assumption*
Power Output Net 338,354 kW
Production Efficiency Net 56.03%
CO2 Emission Factor 0.344 ton CO2/MWh
District heating supply 111,000 Gcal/year
Project Period 3 years for construction,
20 years for commercial operation
Discount Rate 6%
Depreciation Period 20 years
Cost Construction Cost 259,957,000 EUR
Operation & 10,000,000 EUR (escalation rate of 1.5% per year
Maintenance Cost
Tax (for corporate) 16%
Fuel Cost 21.22 EUR/MWh average escalation rate of 2.11% per year
CO2 Price 37 EUR/ton average escalation rate of 4.60% per year
Income Heat Selling Price 34.2 EUR/Gcal average escalation rate of 2.11% per year
Cogeneration Bonus not considered
Transformation Rate 1 EUR=128.46 JPY
1 EUR=1.13 USD
1 EUR=4.65 RON
Financing Structure JBIC and Japanese private banks covered by Nippon Export and
Investment Insurance’s (NEXI) buyer’s credit insurance.
JBIC and Banks 85%
Owner 15%
Financing Conditions Interest 3% per year, Commitment fee: 0.5%
Repayment period 12 years
* Each price is based on the reference year 2024.
Summary-6
Table 5 Assumptions for Scenario 1
Item Assumption *
Capacity Factor 2024 - 2026 68.5 %
2027 - 2036 51.4 %
2037 - 2043 58.2 %
Income Electricity Whole sale Spot 54.46 EUR/MWh (average escalation rate of 2.54% per year)
Selling electricity Forward 38.68 EUR/MWh(average escalation rate of 2.20% per year)
Price The transaction price of the CCPP to be newly constructed is assumed
54.15 EURO/MWh.
Balancing Upload 16.84 EUR/MWh(average escalation rate of 4.1% per year)
market Download 81.96 EUR/MWh average escalation rate of 2.03% per
year
Ancillary FCR** 20.31 EUR/MWh average escalation rate of 2.18% per year
Services aFRR*** 18.48 EUR/MWh average escalation rate of 1.89% per year
market mFRR*** 10.68 EUR/MWh average escalation rate of 2.71% per year
*Electricity selling price is based on the reference year 2024.
** Frequency Containment Reserve (FCR) is included in this analysis. Romania currently lacks a market for FCR, but
the ancillary services structure in compliance with European regulation will be operated in 2021.
*** Frequency Restoration Reserve (FRR) is automatically controlled and manually controlled, and they are shown
as Automatic Frequency Restoration Reserve (aFRR) and Manual Frequency Restoration Reserve (mFRR).
Summary-7
Table 6 Assumptions for scenario 2
Item Assumption *
Capacity factor 68.5 %
Selling electricity Forward 38.68EUR/MWh(average escalation rate of 2.42% per year)
54.15 EUR/MWh
Balancing Upload 16.63 EUR/MWh (average escalation rate of 4.2% per year)
market Download 80.94 EUR/MWh (average escalation rate of 2.13%
per year)
Ancillary FCR 20.12 (average escalation rate of 2.32% per year)
Services aFRR 18.30 EUR/MWh(average escalation rate of 1.94% per year)
market mFRR 10.59 EUR/MWh (average escalation rate of 2.75% per year)
** Frequency Containment Reserve (FCR) is included in this analysis. Romania currently lacks a market for FCR, but
the ancillary services structure in compliance with European regulation will be operated in 2021.
*** Frequency Restoration Reserve (FRR) is the automatically controlled and manually controlled, and they are
shown as Automatic Frequency Restoration Reserve (aFRR) and Manual Frequency Restoration Reserve (mFRR).
The results of economic and financial analysis using the above assumptions are shown in Table 7.
Table 7 Results of Economic and Financial Analysis

Scenario Financial Internal Rate of Return : FIRR Equity Internal Rate of Return: EIRR
Scenario 1 8.78% 14.57%
Scenario 2 10.15% 17.27%
The analysis in both scenarios shows high value. This is indicated that this project is financially and
economically viable.
Based on the aforesaid Romania’s Energy Strategy and study by Tractebel Engie, in consideration of the current
business situation, the project in both scenarios shows high value in all measurement indicators including FIRR and
EIRR. This indicates that this project is financially and economically viable. These high IRRs arise from the future
structure that the CCPP to be newly constructed will play a main role in the electricity market as renewable energy
increases, and thus the project is able to make profit. Therefore, this project is important for the electricity market
in Romania. However, in both scenarios, the revenue is low for the first 5 years since the start of commercial
operation, and during this period, it is hard to repay loans. This is because Gas and CO2 cost turns out to be a big
burden to the project and spoils its cash flow. In this regard, scheme to offset Gas and CO2 cost, such as cogeneration
support, is desired.
Summary-8
4) Study of Environmental Social Aspects
Table 8 shows the results of the preliminary evaluation on the environmental and social impact of this project.
As shown in Table 8, it is expected that the environmental burden will not be large.
This project also complies with Romanian laws and regulations on ESIA and EU regulations. Regarding
environmental and social impact, no serious concerns are found based on JBIC thermal power generation
checklist.
Table 8 Preliminary Evaluation Results on Environmental and Social Impact
Major research items Potential Remark
impact
I) Permit and approval, explanation No applicable
matters
II) Pollution control Small Compared with the current exhaust gas effect, it is
reduced. (CO2 reduction amount: about 500 t / year)
Noise is not an important source of influence
because there is no residence near the power station.
III) Natural environment Small Protected species and endangered species have not
been identified.
IV) Social environment Small Land acquisition or compensation from residents is
expected to be unnecessary.
V) Others Small
Table 9 shows the survey results on permits and approvals in Romania, which is necessary for this project
implementation.
Table 9 Major List of Permits and Approvals required
Permit/Approval Applied to
1 Zonal Urbanism Plan/ Building Permit Local Administration
2 Establishment Authorization ANRE
3 Environmental and Social Impact Assessment Local Administration
4 Grid Connection Transelectrica/ANRE
5 Aviation Easement Civil Aviation Authority
6 Approval by Neighbouring Owners Neighbouring Owners
7 Electromagnetic Interference National Communication Authority
8 Waters Endorsement National Water Administration
9 Emplacement Endorsement State Natural Gas System Operator (Transgaz)
10 Endorsement Agricultural Minister and Rural Development
11 Endorsement for Land Plots Administration of Land Improvement
(Source: prepared by the study team based on Nicolae Legal Report)
Summary-9
(5) Feasibility on Buyer's Credit Request / Implementation
1) Issues on Buyer's Credit Request
We examined borrowers. As a result, it was confirmed that JBIC / NEXI would be able to provide Buyer's Credit
only in the following two cases.
I) Payment guarantee is given by the Romanian government, or the Romanian government
II) Existing organization’s financial situation meets the loan condition of JBIC / NEXI
Obtaining permission (EIA, construction permission etc.) and loans can’t proceed unless the implementing entity
is decided.
As JBIC / NEXI finance to the entity described above, it is necessary for the bankable entity to be the successor
of this project.
2) Feasibility on Buyer's Credit Request / Implementation
It is not the implementing organization established until the licensing procedure and financial arrangement would
be faced.
The MOF would not issue guarantee for the repayment of external debt for implementation of the project.
The export credit provided by JBIC/NEXI is not available to CEH and MOE. However, it is possible to finance
the entity described in 1).
Therefore, if an entity eligible to be financed by JBIC / NEXI becomes the executing agency for this project, it
is possible to request Buyer's Credit. It is necessary to promote this project in cooperation with all the relevant
parties so that this entity becomes the executing agency.
Summary-11
(6) Advantages of Japanese Companies on Technical Aspects
Japanese power generation equipment manufacturers have endeavored to improve performance and improve
reliability while competing with manufacturers in Europe and the United States. In addition, Japanese power
generation equipment manufacturers have constantly made efforts to reduce costs in fierce international
competition. As a result, latest GT has sufficient competitiveness in terms of technology and price. Japanese
company has a comparable power output and thermal efficiency to its competitors, while the EPC cost is slightly
cheaper, which is also considered competitive.
In terms of operation, maintenance, and operation management, the technology and experience of Japanese
power generation equipment manufacturers, power generation companies etc. contribute greatly to support
CCPP's operation, maintenance and operation management of this project.
Summary-12
(7) Detailed Action Plan and Task to realize the Project
Challenges in promoting this project are mainly summarized into the following two points.
Decision of executing agency
Obtaining permission (EIA, construction permission etc.) and loans can’t proceed unless the implementing
entity is decided.
.
Financing
The Ministry of Finance in Romania will not guarantee for loans to this case. Export credit by JBIC / NEXI
is not applicable for CEH and Ministry of Energy.
In light of the necessity of main power supply in this region, supply of district heating and supply of system
operation service, it is necessary to repower the Deva CFPP. Construction of a state-of-the-art natural gas-fired
CCPP is judged to be the most suitable considering the diversification of power generation types, domestically
produced natural resources, environmental impact, and flexible adaptation to the load required by the system
throughout the year. Under these circumstances, prompt response of Romanian organizations, mainly the MOE, to
realize this project is expected.
Summary-13
(8) A Map showing the Project Site Location in the Survey Country
The map showing the project site location is as below.
Figure 1 Map showing the Project Site Location
Romania
Hunedoara County
Deva
Capital : Bucharest
Scale 1:5,000,000
Summary-14
Chapter 1 Background and Necessity of the Project
(1) Project Background
Romania is located in the southeastern Europe region, is the eastern edge of the EU. Romania is a geopolitical
point of view facing the Middle East region through the former Soviet bloc and the Black Sea.
Romania has undergone a shift to a market economy with the support of Western countries after the system
change in 1989, and since then, it has maintained solid economic growth. However, in 2009, it fell to negative
growth due to the global economic downturn. The importance of the manufacturing industry is low, the exporting
power has not been strengthened, and there is a delay in infrastructure development including roads as a
development task.
Looking at the power infrastructure that becomes the foundation of the industry in Romania, the demand is limited
to 9 GW regardless of the equipment capacity of 20 GW or more, which is in excess of supply. However, thermal
power plants, which are the main sources of supply, are aging and many do not meet EU emissions regulations
they joined in 2007. Therefore, the urgent issue is the construction of power generation equipment that reduces the
environmental burden caused by renewal of power plants.
Under such backgrounds, with a view to responding to the declining domestic coal output and strengthening EU
regulations on emissions, Romania MOE has formulated plans to update some facilities of the Deva coal fired
power plant (CFPP) located in the northwestern part of the country to a natural gas-fired combined cycle power
plant (CCPP).
Regarding this plan, when Prime Minister Abe visited Romania in January 2018, he received a support request
from Romanian Deputy Prime Minister by Japanese companies and governments.
1-1
(2) Existing Equipment
1) Plant Site
The investment objective, the new thermal power plant of approx.350 Mega Watt (MW) will be located within Deva
coal fired power plants (CFPP), branch of Hunedoara Energy Complex (Complexul Energetic Hunedoara: CEH),
which is the largest power generation equipment in the region.
Figure 1-1 Site Location Map
Romania
Hunedoara County
Deva
Capital City
Bucharest
2) General Data
Deva CFPP consists of

I) Four (4) units with an installed power of 210 MW (units:2,4,5 and 6),
II) One (1) unit with an installed power of 235 MW which has been modernized in 2009 (unit 3), and
III) One (1) unit decommissioned (unit 1),
It connects to the national power grid system through 220 kilo Volt (kV) stations, also provides the district heating
to Deva city with 1,598 contracts, and thus benefits from cogeneration bonus until 2021.
1-2
Table 1-1 Deva CFPP
Unit Capacity Steam Operation Rehabilitation decommission
1 - - 1969 - 2012
2 210 MW 13.72 MPa, 550 °C * 1971 - -
3 235 MW ditto 1971 2009 -
4 210 MW ditto 1971 - -
5 210 MW ditto 1977 - -
6 210 MW ditto 1980 - -
Total 1,075 MW
*Mega Pascal: MPa, Degree Celsius: oC
Figure 1-2 Appearance of Deva CFPP
(Source: CEH Home Page (HP) http://www.cenhd.ro/index.php/about-

us/?SGLSESSID=ahj1gjc9e5nsuqc5e6uv85gab7&/1/)
3) Power Generation
Deva CFPP is located in the South-Western part of Transylvania on the Mures River at a distance of 9 kilo meter
(km) from town of Deva, and has been contributed in providing national power generation as well as stabilizing
national power grid of which location there are small generation capacity as compared to south region.
1-3
Due to the structural change in the Romanian economy, the demand of electricity and heat in Romania as well as in
Deva has very much fallen. The structural change in power generation sources also affects the operation of thermal
power plant, which is forced to operate more in partial load, according to the increase of renewable energy.
Deva CFPP only generate electricity 885 Giga Watt hour (GWh) in 2017, which is only 12% of the record value
7,247 GWh in 1985, units in operation are only 3 of the original 6 units, mainly modernized unit 3 and secondary
unit 2 and unit 5.
Although the generation of the Deva CFPP has been decreased, it should be noticed that in the central-west of the
country there is a few power plants, which obviously creates an imbalance within the National power network and
the Deva CFPP has a strategic importance from the technological point of view to mitigate the imbalance and
stabilize the National power network. At the same time, it plays an important role to provide load frequency control
capability which becomes more and more necessary due to the increase of renewable energy. In 2017, Deva CFPP
has provided wide range of electricity from approx. 60 MW to 350 MW.
However, it is in a serious situation of operation of the power plants, since generation units in Deva CFPP were built
during 1971 – 1980 and very much deteriorated. Total efficiency of the power plant has been dropped by approx.
9% from its original value, resulting in higher fuel consumption.
The environmental regulation of large combustion plant, Directive 2010/75/EU, is making the situation much worse.
For strictly environmental and economic reasons, CEH was forced to retire from operation of Deva CFPP unit 1,
and other units (unit 2, 5 and 6) are to be decommissioned. To meet the European Union (EU) Directive, extremely
large rehabilitation works will be implemented such as replacement of Low-Nitrogen Oxides (NOx) burners,
mechanical works at coal mills and air fans, wet flue gas desulfurization, in conjunction with increasing the degree
of Electrostatic Precipitator particulate retention and disposal of ash and slag in dense fluid (semi-dry), which
requires huge amount of investments and long outage period.
4) Fuel Source
Fuel coal for Deva CFPP is extracted from the collieries in Jiu Valley area owned by CEH. Mining activity is also
in a very difficult economic and financial situation. Relatively higher cost of production of coal led to the lack of
financial possibilities, resulting in decrease in coal production capacity as well as the decrease of coal reserves in
Deva CFPP.
In order to compensate the lack of coal, the purchase of coal from other sources would be required. However there
is no reasonable source for the coal with such low calorific value which is specific to the existing boiler.
1-4
Figure 1-3 Map of Coal Field in Romania
(Source: EURACOAL HP https://euracoal.eu/info/country-profiles/romania/)
5) District Heat System
The centralized supply district heat system of Deva has been provided from Deva CFPP via hot water pipeline since
1985. From 1997, the vast majority of industrial units connected to Deva district heat system changed their field of
activity or even disappeared, which effectively led to the disappearance of technological steam consumption and to
significant reduction of the demand of hot water.
Thus, in 2017, the annual heat supply from Deva CFPP is 131,425 Giga calorie (Gcal), which is 26% of the record
number 513,462 Gcal in 1996. This fall in the demand of hot water is due to the change of circumstance that the
consumers who decided to disconnect from district heat system and adopted the individual heating solution.
The demand of hot water decreases, however district heat system is basically an efficient energy system as it utilizes
waste/low-value heat from thermal power plant effectively and it should be used continuously especially effective
use of energy and existing assets being considered.
1-5
(3) Necessity of the Project
1) EU Directive
The new environmental standards for all the large combustion plants in Europe has been approved on 31 July 2017
by the commission implementation decision 2017/1442 establishing best available technology (BAT) conclusions
under the Directive 2010/75/EU, which stipulates the limits of the materials in exhaust gas as the following table.
Table 1-2 Regulatory Value of each Pollutant

No Pollutant Material Limit Monitoring Due
1 NOx 175 mg/Nm3 *1 permanent 17 Aug.2021
2 Sulfur Dioxide (SO2) 130 mg/Nm3 permanent ditto
3 Particulate Matter (PM) 12 mg/Nm3 permanent ditto
4 Hydrargyrum (Hg, Mercury) 7 g/Nm3 *2 permanent ditto
5 Hydrochloric (HCl) 5 mg/Nm3 every 3 months ditto
6 Hydrogen Fluoride (HF) 3 mg/Nm3 every 3 months ditto
7 Carbon monoxide (CO) 100 mg/Nm3 permanent ditto
*1 milligram: mg, Normal cubic meter: Nm3
*2 micro:
2) Necessity of the Project
Deva CFPP has the following serious situations;

I) Compliance with EU environmental regulations to be tightened in August 2021 as the above-mentioned,
which requires extremely large rehabilitation works and investment costs,
II) Deterioration of the equipment, which causes larger operation cost (larger fuel consumption and the hugest
scale of repair works),
III) Lack of coal supply, due to the relatively higher production cost of fuel coal, CEH’s mining activity is
financially difficult situation, and there is no market in the world for fuel coal with such lower calorific value,
and
IV) Partial load operation which makes lower efficiency and a decrease in income, due to the increase of
renewable energy which receives priority connection right over fossil fuel power plants.
1-6
While, Deva CFPP still takes the following important role.
I) Ancillary Service in national power grid
Deva CFPP stands in the central-west of Romania where there is a few and smaller power plants, and
contributes to mitigation of the imbalance in the national power grid, especially under the circumstance of
large amount of renewable energy introduced which requires more load frequency control capability.
II) District heat system in Deva region
This is the most economical heat supply system since the heat is generated by the exhaust gas from Deva
CFPP, and only the solution in the region.
Once again, following is the problem of the Deva CFPP;

I) too expensive to be economically competitive,
II) the equipment exceeding those designed life time,
III) lack of coal supply,
IV) EU environmental regulations to be tightened in August 2021, and
V) ancillary service required to operate more flexibly
It is reiterated that the replacement of the old generation equipment with new thermal energy generation units is
absolutely necessary.
Considering the diversification in electricity generation equipment, the availability of domestic natural resources
and environmental friendly equipment, the ministry of energy (MOE) has the plan to install most advanced natural
gas fired combined cycle power plant within the Deva CFPP site, which shall be designed to operate with a required
load flexibly by the national grid over the year.
Thus, the Memorandum of Understanding was made in May 2018 among MOE, CEH and ITOCHU Corporation
for ITOCHU’s preparation of the study on the new high efficiency 350 MW class generation equipment whose goal
is to evaluate the technical and financial aspects required to carry out the investment works in the optimal and
feasible solution.
For the investment of new equipment most economical operation and the relatively shorted pay-back period shall
also be considered. With regard to the ancillary service to be provided, the new equipment shall be designed
compliant to the provisions of the grid code in Romania.
3) Objectives of the Investment
The following issues are mainly focused for the investment:

I) Improvement of the technical and economic parameters performed by the most advanced technology,
II) Environmental improvement by means of the fuel conversion from coal to gas and high-efficient operation,
III) Reinforcement of the ancillary service to the national grid, and
IV) Heat supply to the region continuous and safety manners with a minimal cost.
1-7
(4) Present Situation of the Plant
1) Electricity & Heat Generation
Figure 1-4 shows the transition of the amount of electricity generation after the start of the commercial operation of
the Deva CFPP and Figure 1-5 shows the transition of the heat supply amount.
As can be seen from Figure 1-4, after Romania joined EU in 2007, electricity generation gradually decreased to
below 1,000 GWh in the recent years. And as can be seen from Figure 1-5, heat demand is decreasing mainly due
to the individual heating solution.
Figure 1-4 Electricity Generation of Deva CFPP

GWh
8,000 Max.7,247
7,000
6,000
5,000
4,000
3,000
2,000
1,000 885
(Source: provided by CEH)
Figure 1-5 Heat Generation of Deva CFPP

GCal
600,000
Max.513,462
500,000
400,000
300,000
200,000
131,425
100,000
1-8
Monthly generation data for both electricity and heat in 2017 are shown Figure 1-6 and 1-7.
As shown in Figure 1-6, the Deva CFPP has a large amount of power generation in summer and winter. As shown
in Figure 1-7, heat supply tends to be higher in winter.
Figure 1-6 Monthly Electricity Generation of Deva CFPP in 2017

Mega Watt hour (MWh)
120,000
103,905
98,853
100,000 93,990
89,263
78,717
80,000 75,634 73,516
60,000 55,574 53,585 54,606 57,252

50,227
40,000
20,000
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Figure 1-7 Monthly Heat Generation of Deva CFPP in 2017

Gcal
25,000
23,307
20,000
17,773
16,580
15,000 13,763
13,003
10,448 10,140
10,000
6,830
5,060 4,711 4,658 5,152
5,000
0
1-9
2) Fuel Coal
a) Specifications
The following table shows the specifications of the fuel coal for Deva CFPP, and the Drummond coal in Colombia
for comparison. The 20% interest of Drummond coal is held by Itochu Corporation and the coal is exported to
European market.
As shown in the table below, the coal properties of Deva are low-grade coals different from coal properties
commonly traded in international markets, and it is difficult to procure coal of the same grade from the international
market.
Table 1-3 Coal Properties

Deva Drummond
Parameter Unit
Base Maximum Minimum Base Value
Calorific Value kcal/kg * as received 3,700 3,200 as received 6,030
* kilo calorie (kcal), kilo gram (kg)
(Source: prepared by the study team based on the data provided by CEH)
b) Coal Price Index

”Coal Price Indexes” are used worldwide when trading coal. “Coal Price Indexes” are the spot prices per ton given
in United States dollar (US$) and are published by Argus Media Limited and McCloskey.
As shown in the table below, fuel coal with calorific value of 3,200 - 3,700 kcal/kg does not have a market in the
world, and from that point also it is difficult to procure the coal used in Deva from the international market.
Table 1-4 Coal Price Indexes

Code Price Index Trade Term Calorific Value
1 API 2 ARA * Cost, Insurance & Freight (CIF) ARA 6,000kcal/kg
2 API 3 South Africa Free on Board (FOB) Richards Bay 5,500kcal/kg
3 API 4 South Africa FOB Richards Bay 6,000kcal/kg
4 API 5 Australia FOB Newcastle 5,500kcal/kg
5 API 6 Australia FOB Newcastle 6,000kcal/kg
6 API 8 South China Cost & Freight (CFR) South China 5,500kcal/kg
7 API 10 Colombia FOB Puerto Bolivar 6,000 kcal/kg
8 API 12 India CFR India 5,500kcal/kg
* Amsterdam/Rotterdam/Antwerp: ARA
1-10
c) Coal Production
The breakdown of hard coal /lignite is not available. The production of coal/lignite in Romania is given in the
following table. As shown in Figure 1-8, production volume is on a downward trend overall.
Figure 1-8 Transition of Coal/Lignite Production in Romania

million tons oil equivalent (TOE)
7.5 7.0
6.9
7.0 6.6 6.7
6.3
6.5
5.9
6.0
5.5
5.0 4.7 4.7 4.7
4.4
4.5 4.2
4.0
3.5
3.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
(Source: BP Statistical Review of World Energy June 2018)
d) Employees involved in the Mining Activity
Figure 1-9 shows the transition of the number of coal miners. As shown in Figure 1-9, in the last 20 years, the
average numbers of employees decreased from 37,808 in 1997 to 3,022 at the end of the first semester of 2018.
Figure 1-9 Numbers of Employees

40,000
37,808
35,000
30,000
25,000
23,265
20,000 18,114 17,337
19,914 14,900
15,000 17,943 12,041 11,533
16,516
9,200
10,000 13,364 7,433
11,740 10,742
4,741 4,083
5,000 8,459 3,022
5,095 4,493
0 3,552
(Source: CEH HP)
1-11
(5) Scope of Study
1) Study Contents
In this survey, the study team first investigated Romania's energy sector policy, master development plan, market
trends, competitive environment, etc. Next, in order to promote the adoption of eco-friendly high efficiency gas
turbine technology boasted by Japan with the Northern Deva Power Station in Romania as a target project, in
addition to examining the technical aspects, the study team also examined from the aspects of fuel supply and
environmental and social considerations. In addition, the study team clarified the technology and business
problems and risks of this project, and verified the financial and economic feasibility etc. on the premise of
utilizing optimal financing tools. In the study, the study team conducted a survey with the aim of contributing to
the development of Romania and the reduction of the environmental burden by implementing consistently high-
quality proposals from the delivery of equipment. The study team also conducted a survey with the aim of
contributing to expanding exports of high-quality infrastructure in our country.
Specifically, the following survey was conducted.
I) The situation of Romania and the energy sector

Romanian economic and financial situation
Situation of the electric power sector
(current situation and problems of market and policy, future plans, competitors etc.)
Analysis of current situation of target area
II) Project outline, technical aspects examination

Project outline, background, necessity
Optimum equipment specifications and composition
(including comparative advantage analysis with competitors)
Fuel supply status
Issues and proposals for operation and maintenance
(including comparative advantage analysis with competitors)
Possibility of Japanese companies to participate in operation and maintenance
Environmental impact analysis such as the reduction of the Carbon Dioxide (CO2) etc.
III) Examination of environmental and social aspects

Analysis of the current environment and society
The project’s impact on environment and society
Positive effect on the environment such as CO2 reduction
Outline of the relevant laws and regulations and investigation of necessary measures for the project
Investigation of necessary measures based on guidelines of Japan's export credit institution, etc.
1-12
IV) Project implementation schedule
V) Implementation capacity of the Romanian executing agency

Analysis of the Romanian Electricity Market System
Capability analysis of the existing agency (construction, operation, maintenance etc.)
VI) Financial and economic analysis and the prospect of procurement

Project cost (Capital Expenditure (CAPEX) and Operating Expense (OPEX))
Sensitivity analysis on power selling price, fuel price etc.
Review of financial arrangement plan and its feasibility
Cash flow analysis etc.
VII) Action plans and its bottleneck

Activities of Japanese companies, Romanian government agencies and Romanian executing agencies
Legal and financial constraints in Romania
Future actions etc.
2) Study Schedule
The implementation schedule of this study is shown below.
1-13
Figure 1-10 Overall Study Schedule
Survey consideration item · 2018 2019

event June July Aug Sep Oct Nov Dec Jan Feb
1. The situation of Romania

and the energy sector
2. Project outline, technical

aspects examination
3. Examination of
environmental and social
aspects
4. Project implementation
schedule
5. Implementation capacity of
the Romanian executing
agency
6. Financial and economic
analysis and the prospect
of procurement
7. Action plans and its
bottleneck
Field survey *** *** ***

Draft Final
Report submission
1-14
3) Executing Organization
The structure of the study team is shown below. Kansai Electric Power Co., Ltd. plays the main role, and a portion
of this study is shared by ITOCHU Corporation, Japan NUS Inc., TRACTEBEL and NICOLAE.
Figure 1-11 Study Implementation Organization
Kansai Electric Power Co., inc.

Thermal Power Division
Business administration group

Team Leader Deputy Team Leader
Power development plan / Financial Operation management / Environmental
economic analysis / Cost integration, social aspect / Implementation capacity
financing analysis
Katsutoshi Yurugi Naoki Fujimura
Mechanical Leader Electrical Leader

Kei Tanaka Toshihiko Ogata
Mechanical placement plan / Mechanical BOP Equipment /

Electric Design / Transformer
Fuel / Water Supply and Instrumentation equipment
master machine design Equipment
Equipment Kensuke Okumura
Masaaki Miura Rie Taniguchi
Eisuke Matsuoka
ITOCHU Corporation TRACTEBEL ENGINEERING NICOLAE

JAPAN NUS Co., ltd.
Collect local information, appoint S.A. Legal Advisory
Environmental and social
appointments, negotiate support Gathering and analyzing Services
consideration analysis
Analysis of finance and economics information on Romanian related
and consideration of project's funding laws and regulations, local situation
plan
Translation of related laws and
regulations
1-15
Chapter 2 Overview of the Host Country and Sector
(1) Economic and Fiscal Situation
1) General Information
a) Geography
Figure 2-1 shows the location of Romania. As shown in Figure 2-1, Romania is located in south east Europe at the
strategic crossroads of the EU, the Commonwealth of Independent States (CIS) and the Middle East. With 19.52
million inhabitants (as of 1st January 2018), the country is the seventh most populous EU member state, and its
capital and largest city, Bucharest, is the sixth largest city in the EU.
Figure 2-1 Location of Romania
(Source: HP https://www.tripsavvy.com/maps-of-eastern-europe-4123431)
It extends approximately 800 km from east to west (43~49 degrees east longitude) and 450 km from north to south
(20~30 degrees north latitude) with a total land area of 238,391 square kilo meter (km2), which is almost same area
as the Honshu island.
2-1
Romania’s relief is very diverse and complex. 31% of the area is covered by mountains (with heights between 800
and 2,543 meter (m)), 36% by hills and tablelands, and the rest of 33% by plains (under 200 m elevation).
The Danube Delta, located north of the Plateau of Dobrudja, is the youngest geographical feature in Romania. It
encompasses the three main arms, Chilia, Sulina and Sfantul Gheorghe, through which the Danube flows into the
Black Sea. The Danube Delta stretches on the Romanian territory over an area of 4,340 km2, of which 78% is subject
to flooding.
Romania’s flora and fauna are very rich and variegated, given the geographic position and the diversity of natural
conditions.
b) Administrative Divisions
Figure 2-2 shows the administrative divisions of Romania. As shown in Figure 2-2, the administrative organization
of Romania features 41 prefectures, and Bucharest, the capital city. In the prefectures, the basic administrative units
are the towns and communes (made of several villages). There are 263 cities and towns, of which 80 municipalities,
and 2,685 communes with over 13,285 villages.
Besides Bucharest, which has a population of nearly 2.1 million, there are 17 cities with over 100,000 inhabitants,
7 of which exceed 300,000. (Source: Embassy of Romania to Japan HP)
Figure 2-2 Administrative Divisions
Romania Map Ukraine
Hungary
Moldova
Ukraine
Serbia
Bulgaria
(Source: HP http://www2m.biglobe.ne.jp/ZenTech/world/map/Romania/Counties_Map_of_Romania.htm)
2-2
c) Population
Figure 2-3 shows the population of Romania. As shown in Figure 2-3, after the largest number was recorded in
1990, the population has been decreasing gradually. In 2017, the population was 19.64 million.
Figure 2-3 Population of Romania
million
Actual Forecast
30
joining the EU as of January 1, 2007

25
20
15
10
(Source: International Monetary Fund (IMF) HP http://www.imf.org/external/datamapper/datasets/WEO)
d) Language
The national language is Romanian (a neo-Latin language of the Romance languages family).
e) Ethnic Structure
Romanian is the largest and accounts for 89.5%. The others are Hungarians (6.5%: including Szecklers) and others
(4%: Roma, Tatars and etc. ).
f) Religion
Most of Romanian citizens keep Christiane identities (Eastern Orthodox: 86.7%, Roman-Catholic: 4.7%; Protestant:
3.2%, and etc.).
2-3
g) Currency
The Romanian leu (plural: lei) is the currency of Romania. Its currency code is RON. RON is subdivided into 100
bani (singular: ban). The word “bani” is also used for “money” in the Romanian language.
Figure 2-4 shows the RON vs US$, EUR and JPY historical chart. US$ 1 is RON4.0776, euro (EUR) 1 is
RON4.6519 and Japanese Yen (JPY) 100 is RON3.6172 with the exchange rate announced by the National Bank of
Romania (NBR) on 5 December 2018.
Figure 2-4 RON vs US$, EUR and JPY Historical Chart

RON/Currency
EUR Yen100 US$

6
0
Jan-08
Nov-08
Apr-09
Sep-09
Feb-10
Jul-10
Dec-10
May-11
Oct-11
Mar-12
Aug-12
Jan-13
Nov-13
Apr-14
Sep-14
Feb-15
Jul-15
Dec-15
May-16
Oct-16
Mar-17
Aug-17
Jan-18
Nov-18
Jun-08
Jun-13
Jun-18
(Source: NBR HP http://www.bnr.ro/Exchange-Rates--3727.aspx)
2-4
h) Climate
Figure 2-5 shows Romania map of Köppen climate classification. Romania has a temperate-continental climate with
moderate features which is characteristic for Central Europe, with hot summers, long, cold winters and very distinct
seasons. Abundant snowfalls may occur throughout the country from December to mid-March, especially in the
mountainous areas.
The annual average temperature depends on latitude and ranges from 8°C in the North and 11°C in the South, with
temperatures of 2.6°C in the mountains and 12°C in the plains. In general, the warmest areas are in the southern
districts of Romania.
Figure 2-6 shows the average temperature of Bucharest and Tokyo in the last 10 years. Daytime temperatures vary
from 0-5°C in the winter and 25-30°C in summer months. In the northern and eastern mountainous districts of
Transylvania, it can be cooler with moderate daytime temperatures and cool nights in the summer and temperatures
far below zero in the winter.
Figure 2-7 shows the monthly mean precipitation of Bucharest and Tokyo. Annual average rainfall is about 700
milli meter (mm), more in the mountains (up to 1000 mm) and less on the coast (around 400 mm). It can rain
throughout the year; spring is the driest season. In summer, showers and thunderstorms are common, especially in
the mountains.
2-5
Figure 2-5 Romania Map of Köppen Climate Classification
(Source: Romania National Meteorological Administration)
2-6
Figure 2-6 Average Temperature in the last 10 years
AHT Bucharest AHT Tokyo ALT Bucharest ALT Tokyo

35
30
25
20
15
10
5
0 Average Highest Temperature: AHT
-5 Average Lowest Temperature: ALT
-10
AHT Bucharest 2.3 5.4 12.7 18.7 23.9 27.3 31.0 31.0 26.1 16.9 11.7 5.3
AHT Tokyo 9.8 10.7 14.1 18.9 23.2 26.3 30.3 31.8 28.2 22.4 17.3 12.2
ALT Bucharest -6.0 -3.4 0.5 4.6 9.6 13.9 15.8 15.3 11.3 5.3 2.1 -2.9
ALT Tokyo 2.6 3.1 6.0 10.7 15.8 19.9 23.8 25.1 21.7 16.3 10.5 5.1
(Source: Japanese Meteorology Agency (JMA) HP
http://www.data.jma.go.jp/gmd/cpd/monitor/climatview/frame.php
http://www.jma.go.jp/jma/menu/menureport.html
Figure 2-7 Monthly Mean Precipitation
Amount 300
(mm)
250
200
150
100
50
0
Rainfall in Bucharest 33.8 34.1 38.6 52.4 56.4 79.2 63.1 51.4 54.5 49.5 43.0 44.2
Rainfall in Tokyo 49.9 79.3 99.1 152.4 162.8 166.6 117.4 139.5 213.0 293.2 93.8 82.2
(Source: JMA http://www.data.jma.go.jp/gmd/cpd/monitor/nrmlist/NrmMonth.php?stn=15420

http://www.jma.go.jp/jma/menu/menureport.html)
2-7
i) Politics
The constitution stipulates that Romania is a sovereign, independent, unitary and indivisible republic state headed
by the President.
The state is organized according to the principle of separation and balance of the powers - the Legislative, the
Executive and the Judiciary - in the framework of constitutional democracy, guaranteed by political pluralism.
The President of Romania represents the Romanian state and guarantees the national independence, unity and
territorial integrity of the country. The President is elected for a five-year term (maximum 2 times) by direct elections.
The current President of Romania is Klaus Iohannis since 21 December 2014.
The Parliament of Romania (4-year term) has two houses, the Senate (137seats) and the Chamber of Deputies (334
seats).
The Government of Romania, headed by the Prime Minister, entrusted by the President of Romania with forming
the Cabinet and with the Governance Program endorsed by Parliament by a vote of confidence.
j) Military
The Land Forces, Air Forces and Naval Forces of Romania are collectively known as the Romanian Armed Forces.
The new armed forces include 90,000 men and women, of whom about 75,000 are military personnel (the remaining
15,000 or so are civilians). 60,000 of the 90,000 are active forces; 30,000 comprise the territorial reserve. Out of the
75,000 troops which comprise the actual military, about 45,800 make up the Land Forces, 13,250 serve as the Air
Forces and 6,800 are in the Naval Forces; the remaining 8,800 serve in other fields.
The conscription system was abolished in 2006.
k) Foreign Relations
Romania is a member of the United Nation (UN) (joining in 1955)
After the end of the Cold War, Romania developed closer ties with Western Europe and the United States of America
(USA), eventually joining North Atlantic Treaty Organization (NATO) in 2004, and hosting the 2008 summit in
Bucharest.
The country applied in June 1993 for membership in the EU and became an Associated State of the EU in 1995, an
Acceding Country in 2004, and a full member on 1 January 2007.
2-8
2) Economic and Fiscal Condition
a) Economic Magnitude
Figure 2-8 shows the nominal Gross Domestic Product (GDP) of Romania and neighboring countries in 2016
reported by IMF. As shown in Figure 2-8, the nominal GDP of Romania in 2016 was US$ 187,593 million which
was 52nd biggest in the world and just the same economic magnitude of Hyogo prefecture in Japan.
Figure 2-8 Nominal GDP of Romania and Neighboring Countries in 2016
Serbia Unit: US$ million

37,745
Bulgaria 52,390
Ukraine 93,263
Hungary 124,380
Romania 187,593
0 50,000 100,000 150,000 200,000 250,000

(Source: IMF World Economic Database October 2017)
b) Economic and Fiscal Overview
Following the collapse of communist rule in 1989, Romania has undergone a long period of economic transition to
a market economy, which has not been smooth. Since 2000, there has been more progress.
An extensive programme of economic reforms included the privatization of several state-owned enterprises and the
restructuring of Romania’s energy, mining and industrial sector. The economy had been growing at an average
annual rate of 6% from 2000 until the economic crisis hit Romania’s economy hard in the final quarter of 2008.
2-9
Figure 2-9 shows the real GDP growth of Romania. As shown in Figure 2-9, Romania officially entered recession
in mid-May 2009. Romania signed a EUR 20 billion stand-by agreement with the EU and the IMF, which has helped
stabilize the economy. After that, the Romanian economy recovered and grew by 3.9% in 2015.
Figure 2-9 Real GDP Growth (%)
Actual Forecast
10
-5
Collapse of Bankruptcy of
Communist Rule Leaman Brothers
-10
-15
(Source: IMF World Economic Database October 2017)
Table 2-1 shows the Romanian key macroeconomic and financial indicators in the last 12 years. Private consumption
was the main source of growth. The pace of growth was accelerated to 4.8% in 2016 in response to the significant
fiscal stimulus including tax cuts and increases of the minimum wage and public wages. Economic growth is
estimated to 5.5% in 2017 and 3.3~4.4% in the following 5 years.
The EU has allocated EUR 23 billion to Romania through the year 2014 - 2020 structural and cohesion fund
(provided to Member States whose Gross National Income (GNI) per inhabitant is less than 90 % of the EU average
and available for investments related to energy or transport that benefit the environment in terms of energy efficiency,
use of renewable energy, developing transport and supporting intermodal transport) programme.
The current account and external debt are on a recovery trend compared to around the 2008 economic crisis.
2-10
c) Labor Cost and Unemployment Rate
Figure 2-10 shows the hourly labor cost in EU member countries. As shown in Figure 2-10, the mean labor cost in
industry was EUR6.3 per hour (4 times or much lower than EU average of EUR26.8 per hour) in 2017.
[EUR] Figure 2-10 Hourly Labor Cost in EU Member Countries

45
40
35
30
25
20
15
10
5
0 Italy
Romania
Latvia
Croatia
Estonia
Austria
France
Greece
Spain
Luxembourg
Denmark
Finland
Germany
Sweden
Czech
Cyprus
Ireland
Bulgaria
Netherlands
Lithuania
Slovakia
Malta
Portugal
Slovenia
UK
Hungary
Poland
Belgium
(Source: Eurostat HP http://ec.europa.eu/eurostat/web/labour-market/publications)
2-12
Figure 2-11 shows the unemployment rate in Romania. As shown in Figure 2-11, unemployment rate in Romania is
rather lower among EU member countries.
Figure 2-11 Unemployment Rate in Romania
[%]
10
8 7.2 7.3 7.2 7.1

7.0 6.8 6.8 6.8
6.4 6.5
5.9
5.6
6
5.0 4.8
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
(Source: National Institute of Statistics (NIS) HP http://www.insse.ro/cms/en/content/official-statistics-romania)
d) Inflation
Consumer prices in Romania increased 5.0 % year-on-year in March of 2018, accelerating from a 4.7 % gain in the
previous month and beating market expectations of 4.9 %. It was the highest inflation rate since June 2013, as prices
rose at a faster pace for both non-food (6.6 % from 6.3 % in February) and food products (4.0 % from 3.7 %).
Meanwhile, services inflation was steady at 2.9 %.
Figure 2-12 shows the inflation rate vs policy interest rate in Romania. As shown in Figure 2-12, inflation Rate in
Romania averaged 45.45 % from 1991 until 2018, reaching an all-time high of 316.90 % in November of 1993 and
a record low of -3.50 % in May of 2016.
2-13
Figure 2-12 Inflation Rate vs Policy Interest Rate in Romania
%
12
Poricy Interest
10
Inflation
8
-2
-4
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Jun-06
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
Jun-12
Jun-13
Jun-14
Jun-15
Jun-16
Jun-17
Jun-18
(Source: NBR HP http://www.bnro.ro/Monetary-Policy--3318.aspx
http://www.bnro.ro/Inflation-Reports-3343.aspx)
2-14
e) Foreign Direct Investment (FDI)
FDI flows and stock in 2009 – 2016 are shown below. As shown below, FDI is on an increasing trend.
Figure 2-13 FDI Flows in 2009 – 2016

[EUR million] Equity Credit
5,000
4,500 176
4,000
3,500
3,000
2,500 1,627 285
432 4,341
2,000
1,659 3,595
1,500 195
2,846
2,427
1,000 1,832
1,730 1,505
500 830
0 -134
-425
-500
2009 2010 2011 2012 2013 2014 2015 2016
(Source: FDI in 2016 published by NBR)
The breakdown of FDI stock by country of origin is shown below. As shown below, the top five countries were
Netherlands, Germany, Austria, France and Cyprus.
Figure 2-14 FDI in Romania by County-origin at 2016 End
Hungary, 1.4
[%]
Czech, 1.7
USA, 1.9 Other,
UK, 2.4 7.7
Spain, 2.4
Belgium, 2.7
Greece, 2.8 Netherlands, 24.3
Switzerland, 3.6
Germany, 13.2
Luxembourg, 4.3
Italy, 6.3
Austria, 11.9
France,
Cyprus, 6.5 6.9 Total EUR 70.1 billion
2-15
The breakdown of FDI in Romania by main economic activity is shown below. As shown below, utility sector such
as electricity, gas and water supply is one of largest recipients.
Figure 2-15 FDI in Romania by Main Economic Activity at 2016 End

Mining, 2.6 Transportation, 1.7 Food Service, 0.6 Other,
Information & Agriculture, 2.6 0.7
Technology, 5.2
[%]
Science &
Technology, 5.6
Manufacturing,
Electricity, Gas, 32.0
Water, 9.6
Finance
Insurance, Construction,
12.6 14.0
Trade, 12.8 Total EUR 70.1 billion
f) Trade
The transition of Romania's trade value is shown in the figure below. As shown below, export and import amount
has been rapidly increasing since Romania became an EU acceding country. Major export items are machinery and
electronic parts, transportation equipment, food, clothing, chemical products, etc., and major imports are machinery
and electronic parts, transportation equipment, chemical products, foods, metal products and the like.
2-16
Figure 2-16 Trade Volume in Romania (1990-2016)
[US$ billion] Export (FOB) Import (CIF)

90
80
70
60
50
40
30
20
10 EU Acceding Country
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
(Source: UNCTAD HP http://unctadstat.unctad.org/wds/TableViewer/tableView.aspx)
Table 2-2 shows the top 10 countries importing from Romania. Table 2-3 shows the top 10 countries exporting to
Romania. As shown in Table 2-2 and Table 2-3, major export countries are Germany, Italy, France, Hungary, and
United Kingdom (UK), and major importing countries are Germany, Italy, Hungary, France and Poland.
Table 2-2 Top 10 Countries Importing from Romania

(Unit: EUR million)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Germany 5,009 5,554 5,442 6,735 8,424 8,369 9,181 10,100 10,782 12,348
Italy 5,033 5,183 4,461 5,159 5,800 5,443 5,619 6,146 6,786 6,660
France 2,272 2,478 2,378 3,103 3,380 3,150 3,353 3,561 3,715 4,147
Hungary 1,691 1,708 1,266 1,782 2,568 2,419 2,456 2,662 2,937 2,974
UK 1,221 1,103 970 1,351 1,448 1,622 2,024 2,149 2,380 2,486
Bulgaria 941 1,390 1,106 1,337 1,636 1,735 1,691 1,772 1,822 1,851
Turkey 2,072 2,205 1,450 2,564 2,780 2,462 2,485 2,312 2,150 1,819
Spain 679 776 868 1,132 1,101 1,108 1,203 1,391 1,579 1,720
Poland 637 669 647 982 1,075 1,087 1,170 1,289 1,463 1,655
Czech 407 526 480 - 754 812 985 1,180 1,365 1,515
(Source: JETRO HP https://www.jetro.go.jp/world/europe/ro/gtir.html)
2-17
Table 2-3 Top 10 Countries Exporting to Romania
(Unit: EUR million)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Germany 8,845 9,189 6,741 7,818 9,405 9,511 10,227 11,187 12,482 13,810
Italy 6,529 6,384 4,551 5,420 6,251 5,983 6,000 6,263 6,857 6,910
Hungary 3,566 4,177 3,250 4,061 4,783 4,916 4,564 4,591 5,005 5,061
France 3,260 3,205 2,401 2,772 3,173 3,096 3,201 3,320 3,519 3,736
Poland 1,732 1,926 1,384 1,749 2,173 2,333 2,457 2,713 3,051 3,464
Netherlands 1,858 2,104 1,505 1,642 1,758 1,920 2,038 2,186 2,524 2,766
Turkey 2,764 2,776 1,460 1,721 1,903 1,841 1,860 1,939 2,283 2,554
Austria 2,483 2,742 1,855 1,914 2,198 2,284 2,193 2,204 2,427 2,406
Bulgaria 609 976 942 1,440 1,582 1,535 1,521 1,680 1,862 2,095
Russia 3,235 3,336 1,502 2,039 2,092 2,391 2,361 2,277 1,986 1,975
(Source: JETRO HP https://www.jetro.go.jp/world/europe/ro/gtir.html)
2-18
g) Trade with Japan
Figure 2-17 Japan’s Trade Volume with Romania
[Yen billion] Export (FOB) Import (CIF)

70
60
50
40
30
20
10
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Export (FOB) 2.58 1.24 2.38 7.56 9.53 19.7 21.8 29.9 46.5 20.9 24.3 36.5 29.2 30.2 35.3 39.4 42.0 44.6
Import (CIF) 5.20 5.56 6.39 7.28 11.3 17.1 21.3 26.4 22.5 20.4 26.0 34.8 34.3 49.7 52.3 52.5 51.9 64.1
(Source: Trade Statistics of Japan HP http://www.customs.go.jp/toukei/srch/index.htm?M=23&P=0)
Figure 2-17 shows the Japan’s trade volume with Romania. In 2016 Romania's exports to Japan amounted to EUR
215.53 million, up 2.2% from the previous year, imports to Japan amounted to about EUR 332.1 million, up 13.6%
the same.
Table 2-4 shows the major trade goods between Romania and Japan. Looking at exports by major items in Table 2-
4, wood and charcoal (composition ratio 75.7%) increased by 10.3% from the previous year. Grains (the same 4.5%)
decreased by 57.8%. This is due to the fact that wheat and maslin increased more than 6 times, while barley
decreased by 95.1% and remarkably decreased. Optical equipment and precision devices (the same 2.1%) increased
by 27.2%, transportation equipment (the same 1.7%) also increased 9.8%, and tractor and automobile parts 27.7%
increase contributed to this. In addition, medicine (the same 1.5%) and natural honey (the same 1.4%) increased 2.3
times and 2.8 times, respectively. Meanwhile, rubber and the same product (the same1.9%) decreased by 11.3%,
and electrical machinery and electrical equipment (the same 1.2%) decreased by 47.5%, both exports declined.
Looking at imports by major items, reactors, boilers, machinery (the same 23.0%) increased by 12.5%, and electrical
machinery and electrical equipment (the same 20.7%) also increased by 7.7%. Transportation equipment (the same
18.8%) increased by 42.8%, as passenger cars increased by 18.5%, and tractors and automobile parts increased by
60.6% to a large extent. In addition, glass and the same product (the same 3.1%) increased 56.9%, organic chemicals
(the same 1.2%) increased 81.3%. In addition, iron and steel (the same 1.1%) and steel products (the same 5.8%)
decreased by 52.3% and 11.1%, respectively.
2-19
h) Tax
EU Directives are applicable and extensive tax treaties are available (with around 90 countries, including Japan with
favorable withholding tax rates) in Romani.
Table 2-5 shows the taxes in Romania. As shown in Table 2-5, corporate income tax rate is 16.0%. Corporate income
tax is one of the lowest in Europe. Various tax incentives (for example extra deduction on research and development
(R&D) activities, corporate income tax exemption for 10 years for companies performing exclusively R&D,
exemption on reinvested profit, income tax exemption for software developers, etc.) and state aid schemes are
available.
2-21
Table 2-5 Taxes in Romania
Tax or Mandatory Contribution Rate Remark
1 Corporate Income 16.0% 7 years carry forward of tax losses
for Microenterprise (sales less than EUR1 mil) 1% 3% if no employees
2 Mandatory Social Contributions 37.25%
of which Pension Fund Contribution 25% born by Employees
Health Fund Contribution 10% born by Employees
Work Insurance Contribution 2.25% born by Employers
3 Personal Income Tax 10.0% effective on 1st January 2018
4 Withholding Tax - Dividends 5% Remittance to Japan Max.10%
- Interest/Royalties/Services 16% ditto Max.10% (Royalty 15%)
5 Value Added Tax (VAT) 19%
VAT for Medicines, Food, Beverage, etc. 9% excluding Alcohol
VAT for Book, Museum, Movie, Sport, etc. 5%
6 Local Tax (Building, Land, Car, Advertise, et.) various
7 Contribution for Environmental Fund shall be filed monthly
a Air Pollutants (PM, NOx, SOx, etc.) * various RON 0.02~20 per kilo gram (kg)
b Import or Manufacture of Hazardous Substance 2.0% levied on Price
c Waste (Ferrous & Non-Ferrous) Service Company 3.0% levied on Profit
d Woodwork Sales Company 2.0% levied on Sales
e Import or Manufacture of Mineral Oil RON0.3/kg
f Supplier of Plastic Package RON2/kg less than legal recovery ratio
g Tire Manufacture RON2/kg less than recycle target
h Manufacturer of Plastic Bag not made from Bio RON0.1/pack
* PM: RON0.02/kg
NOx, Sulfur Oxide (SOx): RON0.04/kg
Persistent Organic Pollutants: RON20/kg
Plumbum (Lead: Pb): RON12/kg, Cadmium (Cd): RON16/kg, Hg: RON20/k
2-22
i) Natural Resources
Romania is rich country in natural resources such as crude oil, coal and natural gas among east European countries.
In 2015 Rumanian self-sufficient rate of coal, crude oil, natural gas and uranium were 80.45%, 35.58%, 98.44%
and 100%, respectively.
Figure 2-18 shows the primary energy consumption vs real GDP in Romania. As shown in Figure 2-18, after three
consecutive years of decline, the primary energy consumption in 2015 increased by 1.08% compared with the
previous year and reach 31.91 million TOE.
Generally, it is said that the growth of energy consumption is correlate with that of GDP. However, being compared
to the figure in 2011, the primary energy consumption in 2015 decreased by 10.87%, while the real GDP grew by
11.34% in the same period.
Figure 2-18 Primary Energy Consumption vs real GDP in Romania
Energy Consumption Real GDP

[TOE million] [US$ billion]
40 200
39 190
38 180
37 170
36 160
35 150
34 140
33 130
32 120
31 110
30 100
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
(Source: International Energy Agency (IEA) HP

https://www.iea.org/statistics/statisticssearch/report/?country=Romania&product=indicators)
The consumption and production of natural resources in Romania during the period of 2006~2015 are shown in
Table 2-6. As shown in Table 2-6, consumption and production of coal are on a decreasing trend in Romania.
2-23
j) Natural Gas
Romania occupies the third place in the EU in term of natural gas reserves, after the Netherlands and the United
Kingdom. This makes it different from its neighbors, as it needs to import only a small quantity of natural gas in
recent years.
At this moment two companies account for 95% or more of Romanian gas production: state-owned Romgaz and
OMV Petrom, a subsidiary of Austrian company OMV. Imports (usually in the winter) come from Russia, although
not directly from Gazprom, but through intermediary companies, like WIEE (owned by Gazprom in hungary) and
Conef Gaz.
Table 2-7 shows the production and consumption of natural gas in Romania. As shown in Table 2-7, although
Romania was one of the first countries that used natural gas in Europe, nowadays consumption and production in
Romania are decreasing. The Energy Strategy drafted in 2016 end by the government envisioned a continuing
decrease in gas production and consumption from onshore reserves in the period 2016-2030, mainly because of the
shutdown of large gas consuming industries. While the government permits by the same strategy announced in
September 2018 those industries to consume gas as the raw material whose products are exported.
This is a continuation of a trend that started in the 1990s, when production declined from almost 25.5 billion cubic
meters (m3) in 1990 to around 10.2 billion m3 in 2015, with the share of natural gas declining from 60% to 34.4%
of total energy production.
Consumption has decreased from almost 32 billion m3 in 1990 to 11.0 billion m3 in 2014, the biggest decrease of
consumption in the EU, where the majority of countries increased their consumption of natural gas. For example,
Poland saw its gas consumption grew from 10 billion m3 in 1990 to 15 billion m3 in 2014.
Romania’s gas imports have followed the same path, with volumes decreasing from almost 6.5 billion m3 in 1990
to 0.5 billion m3 in 2014. In 2015, imports accounted for only 1.8% of Romania’s consumption.
Table 2-7 Production and Consumption of Natural Gas in Romania

(UNIT: billion m3)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Production 10.7 10.5 10.4 10.0 10.1 10.1 10.0 10.2 10.2 9.1 10.3
Consumption 14.8 14.1 12.3 12.5 12.9 12.5 11.4 11.0 10.4 10.4 11.9
(Source: BP Statistic Review of World Energy June 2018)
According to the Energy Strategy published by the government in September 2018, the total proved reserves of
natural gas in Romania is estimated at 153 billion m3.
2-25
Romania could almost double its natural gas production to about 20 billion m3 a year by 2025, helped by new
offshore discoveries in the Black Sea. It is expected that two companies could be producing natural gas offshore in
Romanian Black Sea waters by 2021.
Black Sea Oil & Gas, controlled by private equity firm Carlyle Group LP, has almost finalized its project and could
start producing roughly 1 billion m3 of gas per year by the start of 2020 at the latest. Meanwhile, a joint venture of
OMV Petrom and ExxonMobil could start extracting 6 billion m3 per year in 2020-2021
Figure 2-19 shows the map of gas field in Romania. Romania plans to start work this year on its section of a new
EU-backed natural gas pipeline to connect Bulgaria, Romania, Hungary and Austria and ease reliance on Russian
gas.
Figure 2-19 Map of Gas Field in Romania
(Source: HP http://peopletales.blogspot.jp/2013/10/oil-industry-in-romania-world-premieres.html)
k) Coal
Total hard coal resources are estimated to be 2,446 million tons of which 252.5 million tons are commercially
exploitable within the currently leased areas, although as little as 11 million tons might be economically recoverable.
Figure 2-20 shows the map of coal field in Romania. Proven reserves of lignite total 280 million tons, with a further
9,640 million tons of resources. Of these deposits, 95% are situated in the Oltenia mining basin where more than
80% can be surface mined. The remaining lignite deposits have low economic potential, explaining why extraction
in most other areas has stopped.
2-26
Figure 2-20 Map of Coal Field in Romania
(Source: EURACOAL HP https://euracoal.eu/info/country-profiles/romania/)
I) Hard Coal
Back in January 2011, the National Hard Coal Company had seven underground coal mines (Lonea, Petrila,
Livezeni, Vulcan, Paro eni, Lupeni and Uricani). In September 2012, these mines were merged with hard CFPP to
create the COMPLEXUL ENERGETIC HUNEDOARA (Hunedoara Energy Complex), a state-owned electricity
and heat producer headquartered at Petro ani in the Southern Carpathians.The company accounts for approximately
2% of Romanian electricity generation, with a capacity of 595MW and about 6,300 employees.
Meanwhile, the CEH entered into insolvency in June 2016. Restructuring continues according to Council Decision
787/2010/EU with aid approved by European Commission decision C (2015) 2652.
II) Lignite
COMPLEXUL ENERGETIC OLTENIA (Oltenia Energy Complex) is Romania’s largest producer of coal-based
energy with an installed capacity of 3,570MW. The company is responsible for 99% of national lignite production.
Its mines and power plants provide direct jobs for 15,500 people.
2-27
Reserves of lignite are concentrated in a relatively small area of 250 km2 where lignite is mined in twelve opencast
pits licensed for another fifty years. These reserves provide a long-term, secure supply for the adjacent Turceni,
Rovinari, Craiova and I alni a power plants
2-28
(2) Overview of the Power Sector
1) Brief History of Power Sector in Romania
Under the planned economy of Socialism the Romanian state-owned autonomous company in the electricity field,
Regia Na ional de Electricitate (National Electricity Authority: RENEL was established. In 1998, following the
RENEL restructuring programme, the National Electricity Company (CONEL) and Societatea Nationala
Nuclearelectrica (SNN) were established.
CONEL comprised three subsidiaries: SC Termoelectrica SA for generation of electrical and thermal power in
thermal power stations, SC Hidroelectrica SA for generation of electricity in hydro-electrical stations, and SC
Electrica SA for electricity distribution and supply.
SNN is the only nuclear power station in Romania and the only Canada Deuterium Uranium (CANDU) reactors
operating in Europe. SNN is now registered with the Register of Commerce, Chamber of Commerce and Industry,
as a state-owned company.
In 2000, CONEL was split into the following independent and fully state-owned trading companies: S.C.
Termoelectrica S.A., S.C. Hidroelectrica S.A., S.C. Electrica S.A. (Distribution and Sales) and C.N. Transelectrica
S.A., as Transmission System Operator, with its subsidiary and the electricity market administrator, Operatorul
Pie ei de Energie Electric i Gaze Naturale Romanian Gas and Electricity Market Operator: OPCOM . As result
of such split, CONEL was dissolved.
2) Organization in Power Sector
a) Ministry of Energy
The Ministry formulates programme and strategy in the energy sector, representing the state and the government, at
a national and international level in energy-related matters, monitoring the energy sector and the compliance with
international treaties in the energy sector.
The Ministry has published a draft of its Energy Strategy toward 2030, including an outlook until 2050 and being
elaborated based on quantitative modeling, which required macroeconomic, industrial, and employment impact
assessments of the energy scenarios and give stress tests for the power and the gas supply systems. The roadmap is
based on five strategic objectives, which have been combined to resemble a building in Figure 2-21.
Finally, the ministry has published “Energy Strategy to 2030 with a 2050 Prospective” on 19th September 2018.
2-29
Figure 2-21 Five Key Strategic Goals
(Source: Energy Strategy toward 2030 published by the MOE)
b) Romanian Energy Regulatory Authority (Autoritatea Na ional de Reglementare: ANRE)
Regulatory authorities for both electricity and natural gas sectors were established in Romania (the electricity
regulator ANRE in 1998 and the natural gas regulator ANRGN (Romanian Natural Gas Regulatory Authority) in
2000) with the mission to create and implement the appropriate regulatory system to ensure the proper functioning
of the electricity and natural gas sector and markets. In 2007, the two regulatory bodies merged under the name of
ANRE and in 2010 ANRE took over the activity of the Romanian Agency for Energy Conservation (ARCE),
therefore assuming the responsibility to monitor and implement energy efficiency measures and promote the use of
renewable energy sources to the final consumer.
Under the laws in Romania ANRE is an autonomous administrative body under Parliamentary control, entirely self-
financed and independent as regards its decision-making process, organization and functioning whose scope of
activity is to issue, approve and monitor the implementation of the national-wide binding regulatory framework
required for the proper functioning of the electricity, heat and natural gas sectors and markets in terms of efficiency,
competition, transparency and consumer protection.
c) Electricity Market
In Romania, which joined the EU in January 2007, the electricity market was completely liberalized from July 2007
and became a country with an advanced electricity market in the Balkans area.
It is OPCOM that manages the electricity market, and operates Day-ahead market, the futures market, the CO2
emission rights market, and the green certification market. The demand supply adjustment market is handled by
Transelectrica, a state-owned enterprise that is a transmission system operator.
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The structure of the current power sector can be classified into the following seven types in Table 2-8.
Table 2-8 Classification in Romanian Power Sector

Classification State/Private Numbers
1 Thermal Power Plant Operators State-owned 6
2 Combined Heat and Power (CHP) System Operators Private 20
3 Independent Power Producer (IPP) Private 170
4 Hydro Power Plant Operator (Hidroelectrica) State-owned 1
5 Nuclear Power Plant Operator (SNN) State-owned 1
6 Transmission System Operator (Transelectrica) State-owned 1
7 Distribution Companies Private 8
d) Electricity Generation
The available capacity installed in 2016, and the generation capacity of 2000 – 2015 are shown below. Following
hydro power generation plants, coal power generation plants have the second largest available installed capacity.
Figure 2-22 Available Installed Capacity (MW) in 2016
Solar 1,304MW Biomass 126MW

6% 1%
Nuclear 1,413MW
7%
Hydro 6,417MW
31%
Wind 3,008MW
14%
N.Gas 3,738MW
18% Coal 4,922MW
23%
Total 20,928MW
(Source: National Report 2016 published by ANRE)
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Figure 2-23 Generation Capacity (GWh) in Romania
[GWh] Coal Oil N.Gas Biofuel Nuclear Hydro Solar Wind
70,000 64,956 65,67666,296

62,69761,673 62,217
59,413 60,979
58,014 59,04558,887
60,000 55,14056,499
53,86654,735
51,934
50,000
40,000
30,000
20,000
10,000
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
(Source: IEA HP
https://www.iea.org/statistics/statisticssearch/report/?country=Romania&product=electricityandheat)
The market share in 2017 is shown below.
Figure 2-24 Market Share by Producers in 2017
Crucea,
0.55% Cernavoda, 0.53%
Veolia, 0.65%
Govora, 0.95%
Ovidiu, 0.98% EDPR, 0.91% Other, 10.53%
Tomis, 1.32%
Hunedoara, 1.98% Hidroelectrica,
Enel Green, 2.40% 24.14%
Romgaz, 3.17%
Elcen, 3.98%
OMV Petrom 5.51% Oltenia, 23.88%
Nuclearelectrica,
18.53%
(Source: Presentation by Oltenia Clean Coal Technology Seminar 22 February 2018)
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e) Hydro Power Plant Operator (Hidroelectrica)
Hidroelectrica is the largest energy producer in Romania, using water from all around the country. It generates about
25-30% of the national electricity consumption, and even more in the cases of heavy rain or snow falls.
Hidroelectrica has an installed capacity of 6,400 MW and produces about 15-20 Tera Wat hour (TWh) per year. The
largest hydro power plant in Romania is Iron Gates, situated on the Danube, which is exploited equally by Romania
and Serbia. It produces about 40% of the energy generated by Hidroelectrica.
Because of a bad management scheme in the last 10 years, Hidroelectrica is now in insolvency since January 2014,
for the second time. The first time was from June 2012 to June 2013.
Hidroelectrica is a state-owned company, with 80% held by the MOE and 20% by the Proprietatea Fund. The
Government wants to list the 10% or 15% of the company’s shares, on the Bucharest Stock Exchange when the
company exits insolvency, which was expected in the second half of 2015.
f) Nuclearelectrica (SNN)
SNN owns and operates Cernavoda Nuclear Power Plant (NPP) unit 1 and 2, 700MW each. 1st unit started the
commercial operation in December 1996 and 2nd unit in September 2007.
Since July 1998, SNN is registered with the Register of Commerce, Chamber of Commerce and Industry as a state
owned company. SNN is reporting to the Minister of Energy. The state owns 82.48% of SNN’s share, Fundul
Proprietatea 9.10% and other shareholders 8.42%.
The main activity fields of SNN are centered on the generation electrical and thermal power, and manufacturing of
nuclear fuel. SNN also coordinates the investment-development activities as well as the human resources training
and optimization.
SNN has two branches.

I) Cernavoda NPP division
- operating Cernavoda NPP units 1 and 2 and the auxiliary services
- performing the preservation of unit 3, 4 and 5 until completion and commissioning
II) FCN – Pitesi, the Nuclear Fuel plant
- manufacturing nuclear fuel for Cernavoda NPP units 1 and 2
In November 2010 receiving the favorable approval of the European Commission for the project of Cernavoda NPP
units 3 and 4 under the European Atomic Energy Community Treaty, SNN signed Memorandum of Understanding
for the development, construction, operation and decommissioning of Cernavoda NPP units 3 and 4 with China
General Nuclear Power Corporation in November 2015.
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g) Oltenia
Table 2-9 shows the power plants operated by Oltenia. Oltenia EC whose object of activity is to generate electricity
and thermal energy based on lignite and to operate lignite mining and reprocess, was established by merger of
Rovinari EC, Turceni EC, Craiova EC, Isalnita EC and Oltenia national lignite society.
Oltenia EC operates 12 power units whose total capacity is 3,570 MW.
Table 2-9 Power Plants operated by Oltenia

Power Plant Capacity Boiler Turbine Operation
1 Rovinari 4 x 330MW Babcock IMBG 1976-1979
2 Turceni 4 x 330MW Vulkan (Babcock) IMBG 1980-1987
3 Isalnita 2 x 315MW MAN Alstom 1987-1988
4 Craiova 2 x 150MW Vulkan IMBG 1987-1988

(Source: Presentation by Oltenia in Clean Coal Technology Seminar 22 February 2018)
h) Hunedoara
Table 2-10 shows the power plants operated by Hunedoara. Hunedoara EC was established in November, 2012, by
merging of Paroseni and Mintia power plants. The four viable mines in the Jiu Valley - Lonea, Livezeni, Vulcan and
Lupeni are going to be included in this structure.
Hunedoara provides about 2% of Romania's electricity generation with an existing installed capacity of 1,075 MW,
being the only major producer of electricity in the center and northwest of the country.
The setting-up of Hunedoara was required by the fact that in Romania there is no company generating electricity
from hard coal which is enough large to participate to regional and international projects for the benefit of Romanian
market.
Table 2-10 Power Plants operated by Hunedoara

Power Plant Capacity Boiler Turbine Operation
1 Paroseni 150MW Soviet Ganz 1964
2 Minta-Deva 210MWx4+235MW Soviet LMZ 1969-1980
(Source: prepared by the study team based on Hunedoara HP)
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i) Transmission System Operator
National Transmission System Operator, Transelectrica was founded in July 2000 further to unbounding the former
Romanian Electricity Authority (CONEL) into four independent entities: Transelectrica (electricity transmission
and dispatching), Electrica (distribution), Hidroelectrica (hydro generation) and Termoelectrica (thermal
generation).
Thus, the transmission and system services were completely separated from the generation, distribution and supply
activities. From the technical view point, the electric power system remained unitary, managed by a unique operator
– Transelectrica.
The shares are listed to the Bucharest Stock Exchange since August 2006.
Transelectrica operates according to the provisions of the Electricity Law and the secondary legislation, particularly
the Transmission and System Operator Licenses, the Transmission Grid Code (GC), Electricity Market Commercial
Code and the Metering Code.
The key function of Transelectrica is as follows:

I) Transmission and System Operator of the Romanian System
ž The grid infrastructure
ž The dispatching infrastructure
ž Capacity allocation on interconnections
ž Green certificate
II) Balancing market Operator
ž The balancing market platform
III) Commercial Operator of the Electricity Market – OPCOM, a legal subsidiary
ž Trading platforms
ž Green certificates trading platform
IV) Metering Operator of the Wholesale Electricity Metering Division OMEPA
ž Metering system
V) Telecommunication and IT Operator – TELETRANS, a legal subsidiary
ž The optic fiber, digital telecom system
Figure 2-25 shows the map of national grid operated by Transelectrica.
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Figure 2-25 National Grid Map
(Source: Transelectrica HP)
j) Distribution
In 2001 on the reorganization of “Electrica” SA, 8 distribution companies are established. “Electrica” SA was split
into 8 branches in Table 2-11:
Table 2-11 Regional Distribution Companies in Romania

Area Name Registered Office
1 North-West Electrica Transilvania Nord Cluj-Napoca
2 Center Electrica Transilvania Sud Bra ov
3 East Electrica Muntenia Nord Ploie ti
4 South-South-East Electrica Muntenia Sud Bucharest
5 South-West Electrica Banat Timi oara
6 North-East Electrica Moldova Bac u
7 South Electrica Oltenia Craiova
8 South-East Electrica Dobrogea Constan a
(Source: Electrica HP https://www.electrica.ro/en/the-group/about/hystory/)
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Figure 2-26 shows the map of distribution companies in Romania. As shown in Figure 2-26, 4 regional distribution
companies are bought by European utility companies; such as Electrica Moldova by E.ON (Germany), Electrica
Banat and Electrica Dobrogea by Enel (Italy), and Electrica Oltenia by CEZ (Czech).
Figure 2-26 Map of Distribution Companies in Romania
(Source: The Diplomat – Bucharest HP http://www.thediplomat.ro/features_0605.htm
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3) Current Situation of Power Sector
a) Electricity Consumption per Capita
The following figure shows the electricity consumption (kilo Watt hour: kWh) per capita of Romania and the EU
countries. The figure of Romania is the lowest among the EU countries.
Figure 2-27 Electricity Consumption per Capita in Romania and the EU Countries
[kWh/Capita]
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,602
2,000
0
Austria
Croatia
Estonia
Latvia
Italy
Spain
Cyprus
Germany
Ireland
Czech
Bulgaria
Netherlands
Lithuania
Portugal
Slovakia
Slovenia
UK
Romania
France
Belgium
Denmark
Greece
Finland
Sweden
Malta
Hungary
Luxemburg
Poland
(Source: IEA 2014 Key World Energy Statistics)
b) Fuel Resources
As shown in the following figure, 42% of all generation equipment in Romania is thermal power equipment.
It is quite rare case among the eastern Europe countries that Romania is rich country in fossil fuel as shown in table
1-6 for example in 2015 the self-sufficiency rate of coal, natural gas and crude oil were 80.5%, 98.4 and 35.6 ,
respectively. However those reserves are not many and Romania tries to develop new coal mines, accelerate the
introduction of renewable energy and promote energy conservation according to National Energy Strategy
2007~2020.
Then, there stipulates in Energy Strategy 2011~2035 announced by the government in April 2011 that electricity
consumption in 2035 is expected to increase to 88.5 Tera Wat hour (TWh) (62% up from that in 2010), and the share
of nuclear and renewable energy shall be increased:
Nuclear: 20.3% (2009) 42.4% (2035), Hydro: 29.2 24.3%, Renewable Energy: 0% 16.8%, Thermal:
50.5% 16.5%
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Figure 2-28 Generation Capacity in 2017
Total 59.8 TWh
RE, 9.6TWh
16%
Thermal,
Nuclear, 25.1TWh, 42%
10.6TWh, 18%
Hydro, 14.5TWh,
24%
(Source: Transelectrica Preliminary Report 2017)
SNN has a hard time in development of Cernavoda NPP units 3 and 4 with Chinese company.
Figure 2-29 shows the installed capacity of renewable energy in Romania 2017. As shown in Figure 2-29, regarding
renewable energy, thanks to the introduction of “Green Energy Certificate (GEC)” 9,069MW renewable energy
have started commercial operation as of end of 2017. However, since July 2013 the issuance of GEC has been
restricted and it is concerned if the pace of implementing renewable energy would slow down.
Figure 2-29 Installed Capacity of renewable energy in Romania 2017

Biomas 263MW
3%
Solar 2,757MW
30%
Wind 6,049MW
67%
Total 9,069MW
(Source: Transelectrica Preliminary Report 2017)
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On the other hand, it is important for Romania to utilize thermal power plants which now occupies 50% or less of
total generation capacity and can complement nuclear or renewable energy. In Romania coal and natural gas are
used for electricity generation. In 2012 CFPP accounted for 39.7% of total generation capacity and natural gas fired
power plants (GFPP) 12.8%. CFPP is still majority in thermal power plants and GFPP gradually increases a presence.
c) Gas Turbine Combined Cycle
Table 2-12 shows the Combined Cycle Power Plant (CCPP) installed in Romania. As shown in Table 2-12, oil and
gas giant Petrom, subsidiary company of OMV Austria, has the largest GFPP in Romania.
In 2015 in Romania 98 5% of domestic consumption of natural gas was produced in the country by Petrom and
state-owned company Romgaz equally.
Petrom has started commercial operation of 860MW CCPP in Brazi 50km north from Bucharest since August 2012.
It accounts for about 25% of the installed capacity of natural GFPPs in Romania (3,738MW, as of end of 2016) and
Petrom supplied 5.51% electricity of domestic consumption in 2017 together with other electricity generating
equipment.
Due to the increase of renewable energy whose electricity generation is instable depending on the climate, large
capacity CCPP is expected to take an important role by means of balancing the supply and the demand in electricity
market.
In June 2017 Romgaz ordered a new CCPP in Iernut (a part of Mures County located in the central part of the
Transylvanian Plateau). Work commenced later in 2017, and the new plant is expected to start commercial operation
in 2019.
Table 2-12 CCPP installed in Romania

Manufacturer
Commercial
Name Owner Steam
Gas Turbine * HRSG** Operation
Turbine***
1 Bucharest West 186MW (1-1-1) Elcen GE Alstom Skoda 2009
2 Brazi 860MW (2-2-1) Petrom GE Doosan GE 2012
3 Iernut 430MW (2-2-1) x 2 Romgaz GE Alstom GE construction
* Gas Turbine (GT)
** Heat Recovery Steam Generator (HRSG)
*** Steam Turbine (ST)
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4) Energy Strategy in Romania
In September 2018, the MOE has published “Energy Strategy of Romania for 2019-2030, with an outlook to 2050.
Table 2-13 shows the forecast of electricity generation to 2050. As shown in Table 2-13, the demand of electricity
is expected to be 77.1 TWh in 2030.
Table 2-13 Forecast of Electricity Generation to 2050

(Unit TWh)
2020 2025 2030 2035 2040 2045 2050
Nuclear 11.5 11.5 17.4 23.2 23.2 23.2 23.2
Hydro 15.8 17.5 17.6 17.6 17.6 17.6 17.6
Wind & Photovoltaic 8.8 9.6 10.5 11.4 12.3 13.1 14.0
Coal 17.5 17.8 15.8 14.9 14.9 14.9 14.9
Oil 0.4 0.4 0.4 0.4 0.4 0.4 0.4
Gas 14.0 14.5 14.5 14.5 14.5 14.5 14.5
Biomass 0.9 0.9 0.9 0.9 0.9 0.9 0.9
Total 68.9 72.2 77.1 82.9 83.8 84.6 85.5

(Source: Energy Strategy of Romania for 2019-2030, with an outlook to 2050)
Figure 2-30 shows the availability of existing power generation equipment. The demand of electricity is expected
to increase. By 2030 due to the ending their lives and or EU emission regulations, fossil fuel-fired equipment are
expected to be decommissioned, and therefore those modernizations or replacements shall be realized in compliant
to EU emission standard.
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Figure 2-30 Availability of Existing Power Generation Equipment
Unit: Giga Watt (GW)
a) Nuclear Energy
Nuclear power is a strategic option for Romania.
Making a timely extension of Cernavoda Unit 1's lifetime will mobilise nuclear expertise in Romania. During the
retrofitting of Unit 1, it will be necessary to provide energy from alternative sources or from import. For this reason,
postponing the definitive withdrawal of some coal or gas capacities could be justified.
Expanding nuclear capabilities at Cernavoda is a strategic decision. The project of two new units will make good
use of the existing infrastructure and will capitalize on the significant reserves of heavy water produced in Romania.
In addition, it will ensure the continuity and development of Romanian expertise in the nuclear sector, as well as
the premises for reuniting the complete nuclear cycle in Romania.
The Cernavoda Unit 3 and Unit 4 projects are the largest potential projects in Romania in the coming decades.
b) Natural Gas
Romania has a net installed capacity of natural gas of about 3,650 MW, out of which 1,750 MW with cogeneration
of thermal and electric energy. There are 450 MW in reserve, and another 1,150 MW are nearing the end of standard
life and will be retired by 2023. A new capacity of 400 MW is under construction in Iernut.
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Instead of the old capacities that will be decommissioned in the near future, it is required to invest in new capacities,
some of which are intended for cogeneration in localities with functional centralized heat supply system of
Bucharest, Constan a, Gala i and others. This includes the replacement of Iernut capabilities.
The cost of the investment is relatively low, below EUR1,000/kW of installed power so that it can be financed even
under the high cost of capital, and the turbines are efficient and flexible.
c) Coal
Romania currently has 3,300 MW of installed and available net capacity (including those reserved for system
services) in lignite and CFPP, with other capacities being refurbished.
All lignite-based units were put into operation in 1970-1990 and the oldest ones are near the end of their life span,
requiring either retrofitting investments to extend the life spans of existing equipment or replacing them with new
units, through larger investments.
The competitiveness of lignite in the electricity mix will depend on:

I) the performance of each unit, rather low for existing equipment,
II) the cost of the lignite delivered to the plant, which is relatively high, and
III) the price of EU Emission Trading Scheme (EU ETS) emission allowances,
and new lignite capacities must have over-critical parameters, high efficiency, operational flexibility and low green-
house gas emissions.
Maintaining coal-based equipment implies streamlining business in this sector throughout the production chain,
including implementing technologies that ensure emissions levels that meet the requirements of environmental
legislation.
In the long run, the role of lignite in the energy mix can be preserved by developing new equipment, equipped with
CO2 capture, transport and geological storage technology.
Even more important will be the role of lignite in ensuring the adequacy of national energy system in stressful
situations, such as periods of prolonged drought or severe frost.
Hard coal reserves in Romania are impossible to exploit under economic efficiency, making it impossible to build
new units to replace the withdrawn ones.
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d) Hydro
A slight increase in hydropower capacity by finalising projects that are currently under development is forecasted.
The essential role played by hydropower on the balancing market will require strengthening through timely
implementation of maintenance and refurbishment works.
According to Energy Strategy of Romania for 2019-2030, hydropower will have an investment budget of over euro
800 million up to 2020 for modernisation and retrofitting works at the plants currently in operation.
The investments necessary for the completion by 2030 of the hydropower equipment, optimised according to the
current requirements, amount to about 2.5 billion euros, which will be provided both by Hidroelectrica and by other
companies and authorities benefiting from these equipment.
In 2030, the total installed capacity in hydropower plants in Romania will reach 7,490 MW compared to 6,741 MW
in 2018. As a result of this installed capacity increase, in 2030 the production of electricity in hydropower plants
will increase from 16.55 TWh in 2018, up to 17.60 TWh.
e) Renewable Energy
Technological evolution leads to lower costs of wind and photovoltaic equipment and opens new prospects for
prosumers. However, without the financial support scheme established by the government, the share of renewable
energy is expected to grow slightly by 2030. Nevertheless, if the energy storage technology were be developed with
the reasonable cost, the share of renewable energy would be higher.
In 2030 the total installed capacity and the annual generated electricity of wind power are expected to reach
approximate 4,300 MW and 11 TWh (It is conflict with the figure shown in table 2-13, however is kept as it is since
so written in the Energy Strategy of Romania.), respectively.
Until 2030, a total installed capacity and an annual production of photovoltaic systems will reach about 3,100 MW
and 5 TWh (ditto).
It is estimated that plants powered exclusively by biomass, bio-liquids or waste, with a total capacity of 139 MW
will be in operation by 2030. The total electricity production from biomass is estimated at about 2 TWh in 2030.
The total investments to be made by 2030 to build new plants or adapt existing ones are around euro280 million.
These investments will be made by the operators who wish to capitalise on this relatively inexpensive energy
resource in new projects, or by thermal power station owners who want to reduce their costs by using a mix of fuel
including primary renewable resources.
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f) Conclusion
Figure 2-31 shows the installed capacity forecast in 2030 compared with present. As shown in Figure 2-31, Romania
has a balanced and diversified electricity mix at present. It contains all types of primary energy sources available in
Romania. It is composed of traditional fuels such as hydropower, nuclear power, coal and natural gas, which is also
preferable from the viewpoint of energy security.
The relative role of natural gas and CFPP in the electricity mix after 2025 will depend on the price of EU ETS
emission allowances. Current projections show a sustained increase in the cost of emissions to euro 40/tonne of CO2
equivalent in 2030 to facilitate the achievement of decarbonisation targets. At this cost, natural gas is competitive
compared to lignite at a price level of euro19 per MWh. If the EU ETS cost remains lower than currently estimated,
coal would keep important position in the energy mix, as it is unlikely that long-term gas prices will remain below
euro15/MWh.
Unless the volume of electricity generated by nuclear energy becomes double, larger scale of natural gas and CFPP
will take place of nuclear energy.
New investment to renewable energy is expected to continue intermittently without the support schemes
implemented by the government. A key factor for the sustainability of renewable energy projects is to secure low-
cost financing.
Through appropriate support mechanisms, the use of biogas and waste will slightly increase, especially in
cogeneration equipment in accordance with environmental regulations.
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Figure 2-31 Installed Capacity Forecast in 2030 Compared with Present
MW Current 2030
8,000 7,490
7,000 6,741
6,000
5,000
4,300
4,000 3,650
3,300 3,100
2,953
3,000
2,200
2,000 1,400 1,440 1,600
1,360
1,000
126 139
0
Nuclear Gas Coal Hydro Wind Photovoltaic Baiomass
* The figures for Gas/Coal in 2030 are obtained by visual measurement from the graphs.
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(3) Matters relevant to the Deva Project
1) Relevant Matters from the Viewpoint of EU Environmental Regulation
Romania joined EU in 2007. Thus existing thermal power plants are required to comply with EU environmental
regulations.
CFPP, which account for more than half of the thermal power plants, are not equipped with adequate environmental
equipment and are facing deterioration. Therefore, the reduction of the environmental burden is necessary as below:
Renovate CCPP to improve environmental impact
Repair coal boiler on large scale and introduce environmental equipment
Abolition of CFPP
As shown in Table 2-14 and Table 2-15, the emissions of air pollutants from the Deva CFPP does not comply with
the current EU environmental regulations. (PM, SO2 and NOx exceed regulatory limits) Therefore, the reduction of
environmental impact is urgently required. The EU environmental regulations plan to launch even stricter
atmospheric emission standards in 2021, and thus acceleration to apply environmental measures is required more
than ever before.
The value of NOx and PM10 included in the air around Deva city exceeded the EU environmental regulation value
as shown in Table 2-16. In the light of the EU’s intention towards new stricter regulations, improvement of air
quality is necessary.
Table 2-14 Air Emission Limits for CFPP in EU

PM CO SO2 NOx
Fuel
(mg/Nm3) (mg/Nm3) (mg/Nm3) (mg/Nm3)
coal and lignite 20 - 200 200
(Source: DIRECTIVE 2010/75/EU, Article 30, Annex V Part1)
Table 2-15 Air Emission Concentration in the Deva CFPP in 2017

PM CO SO2 NOx
(mg/Nm3) (mg/Nm3) (mg/Nm3) (mg/Nm3)
Deva 271.44 - 2720.66 422.20
(Source: prepared by the study team based on interview with the project company)
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Table 2-16 Air Quality Standards in EU and Air Quality Monitoring Results in Deva City Throughout 2017
Critical Level
Monitoring Results
Parameter Limit Warning Level (Influence on
in Deva city
Vegetation)
Hourly average
350 500 - 310.26
( g/m3)
24-hour average
SO2 125 - - 41.85
( g/m3)
Yearly average
- - 20 10.26
( g/m3)
Hourly average
200 400 - 108.06
( g/m3)
NO2 *
Yearly average
40 - - 16.58
( g/m3)
Yearly average
NOx - - 30 32.10
( g/m3)
24-hour average
50 - - 143.62
( g/m3)
PM10
Yearly average
- - 23.27
( g/m3)
Yearly average -
PM2.5 25 - -
( g/m3)
Max. 8-hour
Max daily
CO average 10 - -
2.51
(mg/m3)
* Nitric Dioxide (NO2)
(Source: prepared by the study team based on interview to CEH and DIRECTIVE 2008/50/EC)
2) Relevant Matters of the Future Fuel Supply
a) Coal
Currently, Deva CFPP generates electricity by domestic coal (lignite) from the nearby mine. The amount of domestic
lignite is currently confirmed as approx. 690,000,000 tons and the reserves are approx. 290,000,000 tons, which is
abundant, as shown in Table 2-17 “Situation of Natural Primary Energy Resources” issued by MOE in 2018.
However, since the lignite is mined from underground, the mining of lignite is becoming increasingly difficult due
to economic and financial reasons, and thus lignite mines are being closed in accordance with the plan. A vicious
spiral is formed that the decrease of lignite production and high price compared to other power fuels bring about the
decrease of the electricity sales. This problem may be solved if lignite is transported from other economically and
financially reasonable mines and used for generation at Deva CFPP. However, there are no such suitable mines in
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the vicinity of the Deva CFPP, therefore it is not sustainable to generate electricity with lignite. Accordingly, even
at Deva CFPP, it is meaningful to shift from coal power generation system to natural gas power generation system.
Table 2-17 Situation of Natural Primary Energy Resources

Resource and Reserve
Estimate Annual
Primary Resources Reserves Ensurance Period
Production
Energy Resources Reserves
Resources Mil. Mil. Mil.
Mil. Toe Mil. Toe Mil. Toe Years Years
tonnes1) tonnest1) tonnest1)
Lignite 690 124 290 52 25 4.5 28 12
Hard
232 85 83 30 0.8 0.3 290 104
Coal
Oil 229.2 52.6 3.4 67.4 15.5
Natural
726.8 153 10.5 69.2 14.6
Gas
1) only natural gas is calculated in billions of m3
(Source: Energy Strategy of Romania for 2019-2030 with outlook to 2050)
b) Natural Gas
Romania is rich in natural gas. As shown in Table 2-17, Romania has 726.8 billion cubic meter (bcm) of natural gas
resources and 153 bcm of natural gas reserves. Regarding natural gas reserves, Romania is ranked third in the EU.
Romanian gas self-sufficiency rate is at a high level. At present, reserves-to production ratio is expected to be 14.6
years on reserves basis and 69.2 years on a resources basis. Current gas production sources are primarily onshore
gas wells, but the offshore gas wells at the Black Sea are developed for the use of the Black Sea region. A huge
amount of gas exceeding 200 bcm is buried in the Black Sea, and this gas is regarded as important in the Romanian
energy strategy. In the future, domestic reserves will increase along with the development of the Black Sea,
Romania’s reserves are expected to be the second largest in the EU, exceeding the UK.
As described in Chapter 2 (1) 2) j), domestic gas production volume has a trend toward decrease along with the
decline in domestic gas consumption until 2016, but as stated in the energy strategy issued at the end of 2018,
Romanian government plans to increase domestic gas consumption in the future, and increase in domestic gas
production is expected. The Black Sea gas which is being developed is the prime source of this increase in gas
production.
Given the situation of such gas reserves and production, the gas supply for this project is stable in the future.
Romania and its neighboring countries are connected with gas transmission pipelines. To export Black Sea gas to
the European gas market, the expansion of the interconnection network is in progress. The major suppliers to the
European natural gas market are Russia which has abundant gas reserves, Azerbaijan which is now developing the
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interconnection network to start exporting gas in 2020 and etc. If necessary, it is possible to use imported gas as an
alternative of domestic gas, and therefore fuel supply stability to this project is deemed to be high.
Considering these circumstances of Romanian natural energy resources, shift from coal power generation system to
CCPP using natural gas as fuel for Deva power plant is recommended.
3) Relevant matters of Location
a) From the Viewpoint of Power Supply System
Table 2-18 shows a list of main thermal power plant which is above300 MW. Highlighted in yellow shows the
power plant near Bucharest. As the table shows, the new large-scale CCPP is currently concentrated in the southern
part of Romania, close to the demand site. On the other hand, only few power plants exist in the northwestern part
of Romania where the Deva CFPP is located, and the Deva CFPP is the largest power plant in the area.
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Table 2-18 Main Thermal Power Plant in Romania (over 300MW)
Name of power plant Power Output Configuration Fuel Type Year of
*
(MW) (MW × Number of units) COD
Turceni 1650 330×5 Lignite 1978-1987
Rovinari 1,320 330×4 Lignite 1976-1979
Deva 1,075 210×4 Lignite 1969-1980
235×1
Brazi 950 50×5 Coal 2012
150×2
200×2
Petrom Brazi 860 430×1 Natural Gas 2011
430×1
Ludu -Iernut 800 200×2 Natural Gas 1963/1967
100×4
Br ila 647 227×1 Petroleum Natural 1973/1974
210×2 Gas
Craiova- I alni a 630 315×2 Lignite, Natural Gas 1987/1988
Bucharest South 550 125×2 Natural Gas 1965/1975
100×2
50×2
Gala i 535 105×3 Natural Gas 1969/1988
100×1
60×2
Bucharest West 310 40×4 Coal, Natural Gas 1955/2007
190×1
Borze ti 420 210×2 Petroleum 1968/1969
Craiova II 300 150×2 Lignite, Natural Gas 1987/1988
* COD : Commercial Operation Date
(Source: https://en.wikipedia.org/wiki/List_of_power_stations_in_Romania,
https://www.sourcewatch.org/index.php/Category:Existing_coal_plants_in_Romania)
Figure 2-32 shows the current configuration and the future plan of the 400 kV transmission system. As can be
seen in Figure 2-32, the Mintia district which embrace the Deva CFPP has a plan to reinforce the system to export
electricity to Moldova in the future, and with regard to this plan, the Deva CFPP is expected to be an important
source. This future expansion of energy exports is clearly stipulated as a policy in the "Energy Strategy of
Romania for 2019-2030, with an outlook to 2050" in Romania.
In addition, the Mintia district is located at the middle of the transmission network between the neighboring Hungary,
and since the Deva CFPP have strengthened disperse of the power plant, Deva CCPP to be newly constructed will
contribute greatly to the stabilization of the electric power system.
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Figure 2-32 Current Structure and Future Plan of 400 kV Transmission System in Romania
Mintia
(Source: Transelectrica HP http://www.transelectrica.ro/web/tel/plan-perspectiva)
b) From the Viewpoint of Introduction and Expansion of Renewable Energy
Currently, renewable energy is introduced and expanded. Also in the "Energy Strategy of Romania for 2019-2030,
with an outlook to 2050" in Romania, the future expansion of renewable energy is expected. Figure 2-33 shows the
transition of the future power capacity and its breakdown which is indicated in the "Energy Strategy of Romania for
2019-2030, with an outlook to 2050".
It is assumed to increase the ratio of renewable energy and nuclear power energy which has few frequency
adjustment capability. On the other hand, the ratio of coal-fired power energy which has frequency adjustment
capability is assumed to decrease.
Therefore, to comply with the demand change, the importance of the power source containing both the load change
ability and the frequency adjustment function will increase more in the future. In the current situation, the Deva
CFPP is required to operate in a wide range of load zones. Taking this into consideration, from the viewpoint of
stabilizing the power frequency, it is assumed that the necessity of CCPP, which has higher frequency adjustment
capability than the thermal power plant, namely coal-fired power, is expected to increase further.
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Figure 2-33 Changes in Future Power Capacity of each Power Supply Indicated in "Energy Strategy of
Romania for 2019-2030, with an outlook to 2050"
Nuclear Power
Renewable Energy
Coal-fired Power
Other Thermal
Power
c) From the Viewpoint of Cost Reduction
Since this project is a renewal of the existing equipment (Brownfield case), it is possible to reuse existing equipment
such as water intake / drainage equipment and fuel gas piping. By reusing the existing equipment, CAPEX can be
lowered, which enables to construct a competitive power supply. From this point, it is very significant to build a
CCPP in the Deva CFPP area.
d) From the Viewpoint of Heat Supply
Regarding heat supply, in the "Energy Strategy of Romania for 2019-2030, with an outlook to 2050" in Romania, it
is indicated as a policy that all consumers have secure access to electricity and heat.
Heat from the thermal power plant makes it possible to form a cogeneration system that can effectively utilize the
exhausted steam from the ST, which as a result improves the total thermal efficiency of the power plant.
The amount of district heat supply from the Deva CFPP is very small compared to the heat quantity of ST exhaust
steam of the CCPP to be newly constructed, thus without adding any special equipment, it is possible to supply
regional heat.
Regional district heat supply network has already been developed in Deva area, and successive operation of the
Deva CFPP is also important from this point.
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4) Current Situation of Deva Power Plant
A total of 6 units were built in the Deva CFPP from 1971 to 1980 in order. As described in Table 2-19, Unit 1 has
already been abolished, and currently total of 5 units (Unit 2 to 6) are in operation. Unit 3 was updated in 2007, and
output of Unit 3 improved from 210 MW to 235 MW.
Table 2-19 Abolition Plan of Deva CFPP and List of Power Generation Output
Unit 1 2 3 4 5 6
Already To be To be
Abolition plan 2019 2020 2020
abolished determined determined
Power Output Already
210 235 210 210 210
(MW) abolished
(Source: Based on the data provided by CEH and prepared by the study team)
The transition of the electricity generation is shown in Figure 2-34. Compared with the maximum electricity
generation (7,247 GWh) which was recorded in 1985, the electricity generation in 2017 resulted in 12% (885 GWh)
decline, and 3 units were operated.
Figure 2-34 Transition Electricity Generation at Deva CFPP
2,500
Generated Electric Energy (MWh)
2,085
Electricity Generation
2,000
1,757
1,500
987 997
1,000 885
500
0
2013 2014 2015 2016 2017
Year
(Source: Based on the data provided by CEH and arranged by the study team)
On the other hand, the Deva CFPP supplies electricity in a wide range of load from 60 MW to 350 MW, making a
great contribution to the stabilization of grid power which bears the introduction of renewable energy.
However, the Deva CFPP started its operation from 1971 to 1980 and is now facing deterioration. The thermal
efficiency has also decreased by about 9% since commercial operation started.
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Furthermore, along with the accession to the EU, large-scale thermal power plants are required to comply with EU
environmental regulations (Directive 2010/75 / EU), and in order to comply with this regulation, large scale of
Rehabilitation is necessary.
Replacement to low NOx burner
Modification of mills and fans
Installation of desulfurization equipment
Enhancement of electrostatic precipitator
Enhancement of ash treatment equipment etc.
In response to this, from the viewpoint of environmental friendliness and economic efficiency, Unit 1 had already
abolished and other units will also be abolished in order.
5) Relevant matters of Power Demand and Analysis
a) Power Demand and Future Assumption
Figure 2-35 shows the Romania country power supply type generation electric energy. Electric power demand,
which recorded approximately 59,000 GWh in 1985, declined in 2000 due to a series of restructuring in the industry
and transporting sectors. Electric power demand has recovered since 2000 as a result of stable demand growth in
the homes and commercial sector.
Despite the Romania’s decline in population which should directly ruin the electricity demand, the demand for
electricity is stable owing to the government’s effective economic policy.
As above, it is estimated that the demand for electricity will stay at the current level.
b) Influence of Renewable Energy
Renewable energy (excluding hydraulic power) has expanded from 5.5% (2012) to 16% (2017) on the basis of
electricity generation, and expansion is expected to accelerate in the future. From this point, the growing importance
of a power supply having a high frequency adjustment function can be forecasted.
Since CCPP has a notably high frequency adjustment function among thermal power plant, CCPP is important from
the viewpoint of stabilizing the frequency, given the background of growing increase in introduction and expansion
of renewable energy.
c) Effect of Coal-fired Power
Coal-fired power, which occupied 37.5% (as of 2012) of the amount of electricity generation, continues to
decrease year by year as renewable energy increases, and has decreased to 25.2% as of 2017. CFPP are obliged to
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be abolished due to the strict EU environmental regulations, thus it is expected that repowering and construction
of new CCPP with high frequency adjustment function will become indispensable in the future.
Figure 2-35 Romania Country Power Supply Type Generation Electric Energy
(Source: Romania State Energy Department HP)
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Chapter 3 Study on the Power Plant
(1) General Explanations on the Power Plant
1) Introduction
As mentioned in Chapter 2, Romania became a member of the EU in January 2007. Along with this, thermal power
plants in Romania are required to comply with EU environmental regulations. Especially since aged CFPP is being
big burden to the environment, environmental measures in large amount is required against the operating existing
equipment.
On the fuel supply side, the continuous supply of coal (lignite) in Romania is at a difficult situation. Meanwhile,
the prospect of natural gas supply is stable in the medium and long term due to the rich reserves of the Black Sea
and the reinforcement of the supply network within the EU.
The Deva area is a major base from the viewpoint of the transmission grid and from the viewpoint of district heat
supply.
In addition, since Deva CFPP can be renovated to CCPP by using its existing equipment, it is possible to reduce the
CAPEX and therefore competitive electricity selling price can be achieved.
Based on the above, we will consider to renew an aging Deva CFPP to high thermal efficiency CCPP by replacing
the existing equipment.
2) Power Block Configuration (2on1, 1on1)

a) CCPP Configuration
In constructing the CCPP, the CCPP configuration needs to be studied. The main shaft configuration can be
classified into two types, single-shaft type and multi-shaft type.
Single-shaft type shall be selected from one unit configuration or two unit configuration. Considering the following,
we choose to the premise to be of a single-shaft type with two unit configuration. Comparison between single-shaft
type and a multi-shaft type will be performed afterwards.
I) Because there is district heat demand throughout the year, the configuration should be suitable for short
heat outage period.
II) Since this power plant will be the main electric power source of the Deva area, the configuration should
be suitable for short power plant outage.
Figure3-1 shows an example of the shaft configuration of both types. The single-shaft type is a shaft configuration
in which GT, ST, and generator are coaxially laid.
On the other hand, in the multi-shaft type, separate shaft pierces GT and ST respectively, and the generator
configuration is set together with each GT and ST.
3-1
Figure 3-1 An Example of the Shaft Configuration of Single-shaft and Multi-shaft
Shaft type Configuration
Single- 1on1 ×2 units

shaft
HRSG GT ST HRSG GT ST
The system that consists of GT and ST on the same shaft.
Multi-shaft 2on1 ×1 unit
HRSG GT
ST
HRSG GT
Each GT and ST is installed separately and each GT and ST has a generator.
b) Main Characteristics of CCPP Shaft Configuration

I) Power output, Thermal efficiency
In general, it is possible to increase ST output by adopting multi-shaft type CCPP. Compared to single-shaft
type, during base load operation, multi-shaft type has a little higher generator output and thermal efficiency.
On the other hand, in case of middle load operation, this type of CCPP can be operated with high efficiency,
since one block can be stopped while the other block operates at rated load.
II) Operability
CCPP’s main operation is solely done by the automatic control of fuel which flows into GT. It is a complete
automatic operation. Therefore, there is no difference between multi-shaft type and single-shaft type.
III) Number of main equipment

Compared to the multi-shaft type, the single-shaft type has one less generator and one more ST and related
equipment.
3-2
IV) Installation area
Multi-shaft type is inferior to single-shaft type in terms of efficient land use, since ST needs to be installed
separately. On the other hand, multi-shaft type can have a more flexible plan than single-shaft type when
placing equipment.
Installing a multi-shaft type (2 on 1) as one block requires larger area than installing two blocks of single-
shaft type (1 on 1).
V) Construction cost
Construction cost of single-shaft type is slightly higher due to the increase in auxiliary equipment.
VI) Serviceability
Little difference in configuration exists, however, basically difference is scarce in terms of serviceability
between the two types.
VII) Repair cost

Difference between single-shaft type and multi-shaft type is scarce.
VIII) Unit price of electricity generation

The difference of shaft configuration hardly makes difference in repair cost. On the other hand, single shaft
type is slightly higher in construction cost than multi-shaft type, while single-shaft type’s power
generation efficiency is slightly lower than multi-shaft type. As a result, single-shaft type’s unit price of
electricity generation is slightly higher than multi-shaft type.
IX) GT/ST handling at maintenance period

In the case of multi-shaft type, when one GT can’t be operated due to inspection or unplanned outage, power
plant can operate at almost 50% output.
On the other hand, in the case of single-shaft type, when the GT or ST can’t be operated due to situations
such as inspection of each shaft, it is possible to continue operation by high thermal efficiency while securing
50% output.
X) Summary of Examination Results

A summary of the evaluation is shown in the table3-1.
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Table 3-1 Characteristic of Each Shaft Type
Item Multi-shaft type (2on1×1 block) Single-shaft type (1on1×2blocks)
Power Output Base A little low
A little high
Thermal efficiency Base
high efficiency at partial load of CCPP
Operability Base Same
Number of main Base Many
equipment GT:2, HRSG2, ST:1, GEN:3 GT:2, HRSG:2, ST:2, GEN:2
Installation area Base A little compact
Construction cost Base A little expensive
Serviceability Base Same
Repair cost Base Same
Unit price of
Base A little high
electricity generation
GT/ST handling at Same
It can be operated at about half load.
maintenance period it is possible to operate at high efficiency
c) Recommended Shaft Configuration at the Deva CFPP

As shown in Chapter 2 (3), Table 3-2 can be cited as requirements for the power supply of the Deva area.
Table 3-2 Requirements for the Power of the Deva Area

Requirement Reason
High thermal efficiency To maintain price competitiveness against other power supplies
Low construction cost Same as above
It is possible to operate in a wide load To stabilize the power system accompanying expansion of
range renewable energy
High frequency adjustment function Same as above
Considering the requirement, as shown in the previous section, multi-shaft type (2on1) is favorable than single-shaft
type (1on1) in the following points.
High thermal efficiency
Low construction cost
No difference between multi-shaft type and single-shaft type regarding the following points.
Operational load range
Frequency adjustment function
Based on the above, we recommend the shaft configuration to be multi-shaft type (2on1) as the CCPP of the Deva.
3-4
3) Gas Turbine
a) Dual Fuel System
For an emergency backup power system, GT loaded with dual fuel system is capable of burning liquid fuel such
as light oil when no fuel gas is supplied. In case of burning liquid fuel, there is a method to suppress the amount of
NOx caused by partially high temperature by lowering the combustion temperature by spraying steam or water
into the combustion chamber.
For this project, we confirmed through field survey that the dual fuel system is unnecessary.
4) Condenser Cooling System

a) Overview
Since the candidate site of the project is adjacent to the river, generally there are three following options for the ST
condenser cooling system.
River water cooling system
Cooling tower system
Air cooled condenser system
The ST condenser cooling system is selected through consideration on the environmental conditions of the candidate
site (atmospheric temperature, river water temperature, availability of water use), regulation, operation cost,
construction cost, and ST power generation efficiency.
With regard to the CCPP to be newly constructed, we will consider suitable cooling system, taking into consideration
the operation status of the current Deva CFPP.
b) Condenser Cooling System of Deva CFPP

The condenser cooling system of the Deva CFPP is shown in Figure 3-2. The cooling system is combined with the
following three cases and are used in combination.
Unidirectional flow cooling system using river water
Circulation cooling system using cooling tower (natural circulation type)
Discharge case upstream from the water intake position of the Mures river
3-5
Figure 3-2 Condenser Cooling System of Deva CFPP
Water Gate
Mures River
Water
Screen
Gate
Recirculation P P Circulation
Pump Pump
Cooling
Tower
Route 2
Route 1
Condenser
Route 3
Regarding the operation of these three cases, taking into consideration the operation restrictions shown in Table 3-
3, optimum system is selected and operated each time. When operating the circulation cooling system, from the
viewpoint of securing the minimum flow rate, 2 units of operation is required. In addition, the circulating water
pump is namely a variable blade, and thus enables to adjust the amount of circulating water.
Table 3-3 Operation Restriction List of Each Condenser Cooling System

Route Operational restriction
1 None
2 If any of the following conditions are satisfied, Route2 is operated.
Low flow rate of river water
Occurence of screen clogging due to river garbage
When the river water temperature rises and the cooling merit in the cooling tower relatively
increases
When saving is necessary due to high water unit cost
3 If the Mures river freezes and has negative impact to water intake or if there is such concern, Route
3 is selected.
3-6
For reference, Table 3-4 shows the rated circulation water volume list of the Deva CFPP.
Table 3-4 List of rated Circulating Water Amount of the Deva CFPP
Existing unit 1 2 3 4 5 6
Circulating water Already abolished
29,400* 29,400* 29,400* 29,400* 29,400*
3
volume (m /h) (before abolished:29,400*)
*These values include plant cooling water of 2,400 m3/h.
c) Condenser Cooling System of the CCPP to be newly constructed

I) Reuse policy of existing equipment
i) Cooling tower
Based on the condenser cooling system of the Deva CFPP, we studied the condenser cooling system for the CCPP
to be newly constructed. With respect to the cooling tower, considering the operation restrictions of the Deva CFPP,
we think that this equipment is also necessary for the CCPP to be newly constructed.
The maximum circulating water volume of the CCPP to be newly constructed is expected to be 29,000 (m 3 / h).
This circulating water amount is equivalent to the circulating water pumps flow rate (two pumps) per unit of the
Deva CFPP, which is 29,400 (m 3 / h), and it is considered that the existing equipment of circulating water system
can be reused by judging the design aspect. Also, as a result of visual inspection of the exterior, we recommend the
reuse of the existing cooling tower since the equipment condition by visual inspection is good.
In addition, it is confirmed that the cooling tower has not been operated in 2018 (operating hour is 0). As mentioned
above, since the cooling tower is rarely operated, there is no problem in operation at present. However, if the cooling
tower will be operated more frequently in the future, re-examination of the operation method of the cooling tower
is recommended in order to reduce the in-house power.
Table 3-5 List of Discharge Flow Rates of Existing Circulating Water Pump and Recirculation Pump
Specification Circulating Water Pump Recirculation Pump
Discharge flow rate (m3/h/pump) 14,700 14,700
ii) Pump
As described above, the power of circulating water pump is the largest among the in-house power, and optimum
design leads to improvement of the thermal efficiency of the CCPP to be newly constructed. The same applies to
the recirculation pump. Based on the above, it is recommended to newly install both pumps. For reference, the
specifications of both pumps examined by the study team are shown in Table 3-6.
3-7
Table 3-6 Recommended New Equipment for Circulating Water System for CCPP to be newly constructed
Equipment Specification
Circulating Water Pump 14,500 (m3/h) × 2 units
Recirculation Pump 14,500 (m3/h) × 2 units
iii) Screen
As for the bar screen and the traveling screen, there is no abnormality as a result of the visual inspection. Also, since
the design capacity of existing equipment and the design capacity of the CCPP to be newly constructed are almost
equal, we recommend the reuse of these equipment.
5) Plant Water Supply and Water Treatment System

The amount of water required for the CCPP to be newly constructed is within the water required per unit for existing
CFPP. Since Unit 1 of the existing CFPP is abolished, from the viewpoint of the specification, water equipment can
be reused without problems.
6) Fuel Gas Supply System

a) Equipment Specifications of the Deva CFPP
The specifications of the fuel gas supply piping for the Deva CFPP are shown in Table 3-7.
In the Deva CFPP, up to approximately 40,000 Nm 3 / h of gas is used for auxiliary combustion. The existing units
are planned to be abolished sequentially, therefore the amount of gas will decrease in accordance with the number
of discontinued units.
Table 3-7 Specification of Fuel Gas Supply Piping for the Deva CFPP
Item Specification
Design pressure 10.5bar (gauge)
Design flow rate 100,000Nm3/h
Piping diameter 500A
Piping material Steel
b) Equipment Specifications required for CCPP to be newly constructed

For fuel gas, it is necessary to check whether it meets the required gas temperature and pressure of CCPP.
Table 3-8 shows the fuel gas pressure and flow rate required for the CCPP to be newly constructed.
As shown in Table 3-8, the required flow rates are consistent with the specifications of the Deva CFPP. Since the
required pressures do not match, it is necessary to newly install a fuel gas compressor. Since gas is supplied within
the design pressure (10.5 bar) on the upstream side of the fuel gas compressor, it is possible to reuse upstream fuel
gas piping (from the fuel gas compressor to the existing valve station).
3-8
Table 3-8 Fuel Gas Pressure and Flow Rate required for CCPP to be newly constructed
Item Specification
Required pressure About 40bar (gauge)
Required flow rate About 70,000 Nm3/h
According to GT model.
This specification describes the largest numerical value among candidate CCPP.
7) Transmission Line for Generator

a Transmission System of the Electrical Power generated by Deva CFPP
As shown in Figure 3-3, the electrical power generated by Deva CFPP is stepped up to 220 kV by the generator
step-up transformer (GST) for each unit, and is transmitted to the adjacent Mintia substation. One line capacity of
the transmission line connecting the Deva CFPP - Mintia substation is 225 MW, the rated current of the GST circuit
breaker installed at the Mintia substation is 1,600 A (capable of transmitting up to 550 MW). The substation is
owned by Transelectrica which is Romanian electricity transmission company, and the point of interconnection with
the transmission company is the dead-end transmission tower. Along with the elimination of the unit, the
transmission line from the GST of the existing No.1 power plant to the dead-end transmission tower has already
been removed.
Figure 3-3 Outline Drawing of Transmission Line to Mintia Substation
(Source: prepared by the study team based on Google Earth)
b) Transmission System of the Electrical Power generated by CCPP to be newly constructed

As the power transmission equipment will be constructed after the abolition of existing power station units, we
believe that they can be reused. For example, the configuration of 3 feeders is shown in Figure 3-4. The advantages
of 3 feeders include the ability to supply partial load at the time of failure / inspection of transformers / circuit
breakers, and to reduce the frequency fluctuation to the grid at the time of 1 feeder transformer / circuit breaker
failure. On the other hand, as three transformers is required, equipment costs will increase.
3-9
Figure 3-4 Generated Power Supply System of H-100 type CCPP
8) Candidate for Existing Equipment to be Reused

a) Significance of Reusing Existing Equipment
This project is a Brownfield project. To realize a competitive power supply, it is important to reuse equipment that
can maintain the condition of equipment to the utmost, while at the same time it is also important to take into
consideration the condition of aging equipment. By reusing equipment, CAPEX can be reduced. On the other hand,
if equipment that can’t maintain equipment integrity in the future is reused, there is a possibility that some equipment
might stop the operation, and thus repair expenses may increase significantly.
Therefore, the selection of equipment to be reused is important from the viewpoint of minimizing the life cycle cost
(LCC).
b) Equipment subject to Reuse Study

In terms of reusing equipment, equipment that satisfy the following are the target.
Equipment outside the scope of the main equipment manufacturer ‘s package of supply equipment
Equipment which its design specification does not violate that of the equipment for the CCPP to be newly
constructed.
c) Candidate for Reuse

In light of the requirements of the MOE in Romania and on-site inspection of existing equipment, we consider that
existing equipment in Table 3-9 are the possible candidates to be reused.
For the avoidance of doubt, the existing equipment was selected by evaluating its specification and by visual
inspection. Therefore, we do not guarantee that the reused equipment will operate normally, and we think that re-
examination is necessary to judge whether equipment listed Table 3-9 is good to reuse at detailed designing stage.
As for the candidate equipment listed Table 3-9, it is considered that relocation is unnecessary under current
3-10
circumstances.
Table 3-9 Existing Equipment that can be Reused

Candidate equipment for Visual inspection Rationale of judgment to reuse from the viewpoint of
existing reuse result specification comparison
Intake pit Good The amount of circulating water is equal and possible
Bar screen Good Same as above
Traveling screen Good Same as above
Circulating water piping Good Same as above
Intake
Discharge pit Good Same as above
Cooling tower Good Same as above
Fuel gas piping Good It is possible because the amount of fuel gas used is
within the design flow rate.
District heat supply pump Good It is possible that the amount of district heat supply is
within the amount of existing equipment supply.
District heat supply piping Good Same as above
Demineralized water Good It is possible that the amount of required demineralized
equipment water is within the existing equipment usage.
Demineralized water tank Good Same as above
Potable water equipment Good It is possible that the amount of required potable water
is within the existing equipment usage.
Water pre-treatment Good It is possible that the equipment scale is within the
equipment existing equipment scale.
Wastewater treatment Good It is possible that the equipment scale is within the
equipment existing equipment scale. (However, depending on the
wastewater standard applied to the CCPP to be newly
constructed, it may be necessary to remodel the
equipment)
Workers house Good It is possible that the equipment scale is within the
existing equipment scale.
Warehouse Good Same as above
Transmission line Good Same as above
In the future, when discontinuing all the units of the Deva CFPP, it is necessary to reconsider whether it can
be reused.
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Figure 3-5 Reuse / New Installation Equipment out of Equipment around the Intake Pit
(New installation)
(Reuse)
Circulating water pump
(Reuse) Traveling
Bar screen screen
(Reuse)
Intake pit
(Reuse)
Circulating
water piping
Figure 3-6 Reuse / New Installation Equipment out of Equipment around the Discharge Pit
(Retirement)
(Reuse)
Recirculation pump
Discharge pit
Cooling tower
(Reuse)
Cooling tower
(1 unit : new installation)

Recirculation pump
3-12
d) Equipment not recommended for Reuse
We compared existing equipment and equipment specification required for CCPP to be newly constructed. As a
result, it isn’t recommended to reuse the equipment shown in Table 3-10 in the CCPP to be newly constructed.
Table 3-10 Existing Equipment not recommending Reuse

Equipment Visual inspection Basis for judging not to reuse from the viewpoint of
result specification comparison
Circulating water pump Good Since the equipment performance is directly related to
thermal efficiency, and the influence on power plant
operation upon failure is also large, it isn’t
recommended to be reused.
Recirculation pump Good Because this equipment performance directly connects
to thermal efficiency, it can’t be reused.
Heat exchanger for Good Because the number of steam lines for heat exchange is
district heat supply different and remodeling costs is estimated to be huge, it
isn’t recommended to be reused.
Central control room Good Considering the point that the operability deteriorates
and the construction cost increases, it isn’t
recommended to be reused.
Generator step-up Oil bleeding is Considering the point that the generator voltage is
transformer present different, the number of years since the installation, and
the influence on power plant operation at the time of
failure is also large, it isn’t recommended to be reused.
Start-up auxiliary - No installation required for new CCPP
transformer
Compressed air - Considering the number of years passed since
equipment installation and the influence on plant at the time of
trouble is also large, it isn’t recommended to be reused..
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(2) Supply Plan of Natural Gas and Water
1) Supply Plan of Natural Gas
a) Demand of Natural Gas
Currently, the development and refurbishment plan of an international gas transmission pipeline including the
BRUA connecting Bulgaria, Romania, Hungary and Austria is proceeding. It is expected that gas export to the
European markets including Romania's neighboring countries will increase mainly due to the Black Sea gas.
As mentioned in Chapter 2 (3) 2) b), Romanian gas reserves are huge as 153 bcm. In comparison, the gas volume
used in this project is very small, approximately 0.5 bcm per year. While development of the Black Sea gas fields
increase gas production and thus the exportation to the European gas market increase, simultaneously the gas reserve
is also expected to increase. Therefore, the project’s consumption of gas gives slight impact to Romanian gas
demand and supply balance.
b) Supply of Natural Gas

Trans gaz, which is the gas supplier of this project, is extending Romanian gas transmission infrastructure to meet
the increasing future gas demand and to comply with each gas consuming project’s plan. We confirmed that Trans
gaz will complete the extension of gas transmission infrastructure and supply gas to this project at the required time.
Regarding gas supply to this project, the adjustment will be proceeded with the following system.
Trans gaz
MOE
Owner of CCPP
2) Fuel Gas Supply System

Existing equipment upstream from the fuel gas pressure reduction equipment to the valve station can be reused as
mentioned in Chapter 3 (1) 6). It is necessary to design equipment downstream from existing gas pressure reduction
equipment during the detailed designing phase. Specifically, the following equipment will be designed.
(The following equipment will be installed downstream from existing gas pressure reduction equipment.)
ž Shut-off valves
ž Flow meter
ž Separators for removing foreign substance
ž Gas compressors
ž Gas heaters (if necessary)
ž Gas flow and pressure regulating system
ž Gas detectors
ž Fire extinguish system
ž Gas sampling systems (if necessary)
3-14
The flow meter is an important data measuring instrument to confirm performance in the performance test. In this
performance test, the owner of the CCPP will confirm whether the actual performance of the CCPP satisfies the
contract guarantee. Therefore, it is recommended the flow meter to be newly installed.
There is the minimum gas supply pressure for GT. Each model of GT requires different level of this pressure. The
maximum value of this pressure will be approximately 40 bar.
As shown in Table 3-8, it is confirmed that the designed gas pressure of the existing gas piping is 10.5 bar. Currently
supplied gas does not meet gas pressure requirements of GT. Therefore, it is necessary to install gas compressors
inside the power plant site for this project.
3) Supply of Plant Water

It is confirmed that city water or river water near the Deva CFPP is used for plant water. Water consumption at the
Deva CFPP is approximately 400 m3/h. This means that water supply capacity of the Deva CFPP is enough for
CCPP which requires approximately 13 m3/h of plant water. As the Deva CFPP units will be retired in the future, it
can be evaluated that there is no problem with water supply for CCPP. For reference, Table 3-11 shows the water
source and price of the water confirmed to CEH in the field survey.
Table 3-11 Price and Source of Water

Water Source Price
District heating water City water 1.14 EURO (5.31 RON) / m3
*
Plant water City water 1.14 EURO*(5.31 RON) / m3

Cooling water for condenser Mures river 5.16 EURO*(24 RON) / 1,000m3 + thermal contribution
* This is the price calculated from original RON-denominated data.
4) Water Treatment System

High quality water is required for a power plant. It is necessary to install water treatment equipment such as
pretreatment equipment and demineralized water equipment as shown. As mentioned in Chapter 3 (1) 5), the water
treatment system including pretreatment equipment and demineralized water equipment can be reused for this
project. Figure 3-7 shows an example of a typical water treatment system.
Figure 3-7 Example of Water Treatment System
(Source: Mitsubishi Heavy Industries technical report Vol.50 No.3 [2013]
3-15
(3) District Heating
1) Equipment Specification of District Heat Supply
a) Possibility of Reuse of Existing Heat Exchanger
Concerning existing equipment, it was confirmed that heat exchanger was installed for each unit.
In addition, the heat exchangers of existing equipment have different steam side systems from that of the CCPP to
be newly constructed, and through field investigation we found out that equipment is aging and reuse is difficult.
b) Heat Supply Price

Regarding the price of heat supply, it was confirmed through field survey that the price of the following two types
are determined by the permission of ANRE.
Price for the amount of heat delivered from the Deva CFPP to the central control district heating system
Price for the amount of heat supplied from the central control district heating system to customers such as
home
2) Demand Record of District Heat Supply and Future Prospects

As a district heat supply, we confirmed in the field survey that heat supply of 5 MWth in summer and 30 MWth in
winter needs to be incorporated to the future supply plan.
The amount of district heat supply supplied from Deva CFPP is small but sufficient compared with the amount of
ST exhaust steam of CCPP to be newly constructed, making it possible to supply district heat without adding any
special equipment.
Table 3-12 and Figure 3-8 show the historical record of district heat supply amount of the Deva CFPP acquired on
the field survey and summarized on monthly basis.
It is expected that the same trend will continue in the future, as the average supply of heat of about 16 MWth is
carried out throughout the year, and it fluctuates with similar trends over the 3 years from 2015 to 2017.
Table 3-12 District Heat Supply Amount of Deva CFPP (MW)

Period: January 2015 ~ December 2017
Annual
Year Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.
average
2015 28.9 28.0 21.3 15.1 8.1 7.1 6.5 6.3 6.7 13.2 18.7 24.8 15.4
2016 29.5 23.8 21.4 12.4 9.6 7.8 7.0 7.2 7.8 15.8 24.6 29.1 16.3
2017 34.2 26.7 18.8 15.4 9.6 7.5 7.0 7.0 7.7 14.1 20.4 25.5 16.2
Average 30.9 26.2 20.5 14.3 9.1 7.5 6.8 6.8 7.4 14.4 21.2 26.5 16.0
3-16
Figure 3-8 District Heat Supply Amount of Deva CFPP
Period: January 2015 ~ December 2017
40
District Heat Supply(MW)
35
30
25 Yearly average
20
15
10
0
Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.
2015 2016 2017 Average
3) District Heat Supply by CCPP to be newly constructed

The amount of heat for district heat supply is 5 to 30 MWth, which is a very small amount of condenser heat capacity
used at 350 MW class CCPP, and the influence on the performance of CCPP itself is negligible. Moreover, utilizing
the CCPP calorific value as a heat supply leads to an improvement in the total thermal efficiency of the plant as a
whole, which is a favorable state of operation.
3-17
Chapter 4 Conditions of Land and Climate
(1) Site of the power plant
1) Candidate Site for CCPP to be newly constructed
Based on the results of field survey, coordination with local stakeholders (MOE · CEH · the staff of the Deva
CFPP) was implemented, and the following three are the candidate sites to a CCPP to be newly constructed.
Case 1: The site of Unit1, 2 of existing CFPP
Case 2: Coal yard
Case 3: An adjacent site of Unit 6 of existing CFPP
Figure 4-1 shows terminal points between the candidate site and utility equipment scheduled to be reused.
Figure 4-1 Terminal Points between Candidate Sites and Utility Equipment scheduled to be Reused
2 Characteristics of Each Candidate Site

Characteristics of each candidate site are shown in Table 4-1. Case 3 has the greatest economic merit when
comparing the three cases. However, land acquisition of private land is necessary in Case 3. There will be a risk
of delaying the construction schedule if it takes time to proceed the land acquisition. Therefore, it is important to
promote land acquisition in a timely manner so as to avoid the risk. The required land acquisition range is
shown in Figure 4-2.
It was confirmed at the Deva CFPP that the unit price of private land in Case 3 is estimated to be 8 to 20 EUR /m2.
Therefore, the cost of land acquisition is estimated to be around 61,000 to 152,000 EUR.
4-1
Table 4-1 Characteristics of Each Candidate Site
Items Case 1 Case 2 Case 3
Economy 15,800,000 EUR 4,500,000 EUR Base
: the cost of demobilization : The cost of power (Including the expense of
for equipment below FL + 0 consumption caused to the land acquisition)
m the cost of relocation increase of the power for
cost for common equipment circulating water pump
in the same area
Environment [Concerns] [Concerns]
Soil contamination Soil contamination
(Outflow of underground (Outflow of underground
polluted soil because of the polluted soil because of the
excavation) excavation)
The influence of asbestos
Operability [Concerns]
Inconvenience for O & M
(The central control room
becomes farther than the
existing.)
Work [Concerns] [Concerns] [Concerns]
Schedule The delay of schedule The delay of schedule The delay of schedule
(Due to dismantling large- (Due to soil remediation and (If the acquisition of the land
scale existing equipment and the installation of common outside the CFPP is delayed)
soil remediation) equipment)
Safety [Concerns]
Impact on the construction
(Due to the insufficient
earthquake resistance)
Impact on the existing
CFPP during operation
Evaluation Not recommended Not recommended Best
Results
(Source: Prepared by the study team)
4-2
Figure 4-2 The Range of Private Land in the Candidate Site of Case 3
4-3
(2) The Climate of the Power Plant Site
1) Climate
Romania is classified as a humid continental climates with hot summers (Dfb) in the Köppen-Geiger climate
classification (shown in Figure 4-3). This climate classification refers to a region where the average temperature of
the coldest month is less than 0 (or -3) ° C., the average temperature of the warmest month is between 10 ° C. and
22 ° C., and at least 4 months are 10 ° C. or more. Compared to a humid continental climate with dry winter (Dw),
humid continental climate has no significant difference in precipitation among the four seasons.
Table 4-2 shows each climate data of the project site in Deva.
The average monthly temperature is the highest at 28.6 ° C in August and the lowest at 0.8 ° C in January, and the
annual average temperature is 15.0 ° C.
The annual precipitation is 500 mm - 950 mm, and rainy season and dry season are not clearly separated throughout
the year as shown in the table below (monthly average precipitation 59.2 mm).
Figure 4-3 The Köppen-Geiger Climate Classification (Europe)
(Source: Hydrology and Earth System Sciences: "Updated world map of the Köppen-Geiger climate
classification")
4-4
Table 4-2 The Climate Data in Deva [Five-year Average] Period: 2013.4~2018.3
Summer Winter
Yearly Average Average
Items Units Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Average (Jun.- (Dec.-
Aug.) Feb.)
Average Air
°C 15.4 21 25.6 28.2 28.6 21.4 14 8.4 2 0.8 4.8 9.6 15.0 27.5 2.5
Temperature
Precipitation mm 67.6 94.7 71.9 49.9 33.2 67.8 58.6 56.0 44.3 60.8 41.7 63.5 59.2 51.7 49.0
Relative
% 69.8 71.8 69.6 63 59 67.8 73.2 78 79.8 80.8 78.4 69.8 71.8 63.9 79.7
Humidity
Atmospheric
mb* 1015 1013 1014 1014 1016 1016 1020 1019 1025 1020 1018 1015 1017 1015 1021
Pressure
Wind
m/s 1.9 1.7 1.6 1.6 1.4 1.7 1.6 1.5 1.6 1.5 1.7 1.8 1.6 1.6 1.6
speed
River
°C 11.2 15.0 19.2 20.9 21.8 18.1 11.9 6.4 3.6 2.4 3.7 6.8 11.7 20.6 3.2
Temperature
* Milli bar: mb
(Source: HP WORLD WEATHER ONLINE URL: https://www.worldweatheronline.com/deva-weather-
averages/hunedoara/ro.aspx)
Figure 4-4 The Temperature and Precipitation in Deva (Five-year average)

35 100
90
30
80
25 70
60
20
50
15 40
10 30
20
5
10
0 0
Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.
Average Tempreture [ ] Monthly Precipitation [mm]

The monthly average of the relative humidity is 59 - 69.6% in summer and 78.4 - 80.8% in winter. Atmospheric
pressure fluctuated from 1013 to 1025 mb throughout the year.
4-5
2) Water Intake Temperature of the River
Table 4-3 shows the water temperature of the Mures river, used for cooling of the condenser.
The annual average water temperature is 11.8 ° C, and the monthly average water temperature is 21.8 ° C which is
the highest in August and 2.4 ° C which is the lowest in January.
Table 4-3 Average Water Intake Temperature of the Mures River Unit: ° C
Yearly
Year Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec.
average
2014 3.6 3.9 8.6 12.9 14.7 20.5 23.7 25.2 21.4 14.7 6.8 3.6 13.3
2015 1.2 2.6 6.7 9.7 16.4 19.8 23.2 22.8 19.2 12.7 7.0 4.7 12.2
2016 1.8 4.8 7.0 12.5 14.3 19.0 19.0 18.7 16.7 9.7 5.1 2.4 10.9
2017 - - 7.8 9.6 14.7 17.5 17.9 20.4 15.0 10.3 6.6 3.8 12.4
2018 2.8 3.3 4.0 11.8 17.4 18.1 - - - - - - 9.6
Average 2.4 3.7 6.8 11.3 15.5 19.0 20.9 21.8 18.1 11.9 6.4 3.6 11.8
Source: Provided by CEH
Figure 4-5 Water Intake Temperature of the Mures River (unit: ° C)

30
25
20
15
10
0
Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.
Monthly Average Max. Min. Yearly Average

3) Climate Data
a) Air Temperature
The monthly average air temperature in Deva is shown in Table 4-4 and Figure 4-6.
According to the five-year average of the temperature, the annual average is 15 ° C, which is the highest at 29 ° C
in August and the lowest at 0.8 ° C in January.
According to each monthly data, the highest temperature of 31 ° C was recorded in July 2015 and the lowest
temperature of -4 ° C was recorded in January 2017.
4-6
Table 4-4 Average Air Temperature in Deva (unit: ° C)
Yearly
Year Apr. May June July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.
Average
2013-2014 15 21 24 26 28 18 15 10 1 3 7 11 15
2014-2015 16 20 24 27 27 21 15 9 3 1 3 9 15
2015-2016 14 23 26 31 30 24 14 9 4 0 7 9 16
2016-2017 18 20 27 28 28 24 12 6 -1 -4 4 12 15
2017-2018 14 21 27 29 30 20 14 8 3 4 3 7 15
Average 15 21 26 28 29 21 14 8 2 0.8 5 10 15
Figure 4-6 Average Air Temperature in Deva

35
Max: 31
30
25
20
Average: 15
15
10
0
Min: -4
-5
-10
2013 Apr. Oct. 2014 Apr. Oct. 2015 Apr. Oct. 2016 Apr. Oct. 2017 Apr. Oct. 2018 May.

b) Precipitation and Atmospheric Pressure

The monthly precipitation and atmospheric pressure in Deva are shown in Table 4-5, 4-6, and Figure 4-7.
Regarding the data of precipitation for five years, the average precipitation throughout the year is 59.2 mm. The
maximum precipitation 94.7 mm was recorded in May and the lowest precipitation 33.2 mm was recorded in
August.
Regarding the precipitation data for each month, the highest precipitation 137.8 mm was recorded in May 2017
and the lowest precipitation 16.0 mm was recorded in December 2015.
Regarding the precipitation data for each fiscal year, the highest precipitation 945.4 mm was recorded in FY 2017
and the lowest precipitation 517.9 mm was recorded in FY 2013.
4-7
Regarding the data of atmospheric pressure for five years, the average annual atmospheric pressure is 1017.1 mb.
The highest atmospheric pressure 1025.4 mb was recorded in December and the lowest atmospheric pressure
1013.1 mb was recorded in May.
4-8
Table 4-5 The Precipitation data in Deva (Unit: mm)
Yearly
total
2013-2014 59.9 70.5 59.0 19.0 42.2 82.8 45.9 32.7 16.7 26.9 19.0 43.4 517.9
2014-2015 67.8 85.9 56.8 91.1 28.2 55.3 51.1 27.0 46.5 68.8 37.8 40.5 656.9
2015-2016 78.0 76.2 52.5 19.8 30.7 90.1 51.7 45.7 16.0 78.0 66.3 65.9 670.9
2016-2017 68.6 103.0 112.3 85.1 36.6 43.4 79.2 70.3 42.4 29.3 34.4 54.8 759.4
2017-2018 63.5 137.8 79.0 34.8 28.2 67.3 64.8 104.5 100.2 101.1 51.3 112.9 945.4
Average 67.6 94.7 71.9 49.9 33.2 67.8 58.6 56.0 44.3 60.8 41.7 63.5 710.1
Table 4-6 Average Atmospheric Pressure (Unit: mb)

Yearly
Average
2013-2014 1015.9 1011.2 1013.4 1015.7 1015.4 1015.2 1021.0 1016.3 1026.8 1017.0 1017.5 1015.8 1016.8
2014-2015 1012.3 1012.5 1014.3 1012.4 1013.6 1016.7 1019.8 1020.1 1020.6 1018.4 1017.1 1020.2 1016.5
2015-2016 1017.3 1014.2 1016.3 1014.9 1016.4 1016.3 1020.4 1020.0 1031.7 1018.5 1016.2 1013.4 1018.0
2016-2017 1012.1 1012.5 1013.5 1015.1 1017.1 1017.9 1020.9 1019.9 1029.7 1024.2 1022.4 1017.1 1018.5
2017-2018 1016.3 1015.1 1014.2 1014.1 1016.5 1015.7 1019.0 1017.7 1018.2 1020.0 1015.9 1008.9 1016.0
Average 1014.8 1013.1 1014.3 1014.4 1015.8 1016.4 1020.2 1018.8 1025.4 1019.6 1017.8 1015.1 1017.1

Figure 4-7 Precipitation and Average Atmospheric Pressure in Deva
1035 160
1030 140
1025 120
1020 100
1015 80
1010 60
1005 40
1000 20
995 0
2013 2014 2015 2016 2017 2018
Apr. Oct. Apr. Oct. Apr. Oct. Apr. Oct. Apr. Oct. May.
Precipitation [mm] Atomospheric Pressure [mb]

4-9
c) Relative Humidity / Wind Speed
Relative humidity and wind speed of Deva are shown in Tables 4-7, 4-8, and 4-8.
As for the relative humidity in terms of the 5-year average, the yearly average of relative humidity (RH) is 72%,
which the highest RH is 81% in January and the lowest RH is 59% in August.
Yearly average of wind speed over the past 5 years is 1.6 m / s, which the highest is 1.9 m / s in April , and the
lowest is 1.9 m / s in August.
Table 4-7 Average Relative Humidity of Deva (Unit: %RH)

Yearly
Average
2013-2014 70 66 71 62 62 74 72 79 73 73 74 64 70
2014-2015 71 73 69 70 64 69 71 74 82 82 78 71 73
2015-2016 69 71 66 55 55 67 75 77 83 83 83 76 72
2016-2017 68 73 73 68 64 64 80 80 79 89 82 75 75
2017-2018 71 76 69 60 50 65 68 80 82 77 75 63 70
Average 70 72 70 63 59 68 73 78 80 81 78 70 72
Table 4-8 Average wind speed of the Deva (Unit : m/s)

Yearly
Average
2013-2014 2.0 2.1 1.4 1.6 1.3 1.9 1.6 1.9 1.9 1.9 2.1 2.3 1.8
2014-2015 2.0 1.7 1.7 1.7 1.5 1.7 1.7 1.7 2.0 1.7 1.5 1.8 1.7
2015-2016 2.1 1.6 1.6 1.7 1.5 1.6 1.4 1.5 1.1 1.4 1.6 1.6 1.6
2016-2017 1.8 1.8 1.4 1.5 1.4 1.3 1.5 1.4 1.4 1.3 1.3 1.5 1.5
2017-2018 1.8 1.5 1.8 1.7 1.5 1.8 1.8 1.2 1.5 1.4 1.9 1.7 1.6
Average 1.9 1.7 1.6 1.6 1.4 1.7 1.6 1.5 1.6 1.5 1.7 1.8 1.6
4-10
Figure 4-8 Average Wind Speed and Average Relative Humidity of Deva
2.5 160
140
2
120
1.5 100
80
1 60
40
0.5
20
0 0
2013 2014 2015 2016 2017 2018
Apr. Oct. Apr. Oct. Apr. Oct. Apr. Oct. Apr. Oct. May.
Wind Speed [m/s] Relative Humidity [%RH]

4) Natural Disasters
We confirmed through field survey that a large natural disaster disturbing the operation of the plant did not occur
around Deva and the project site, and the risk of natural disasters such as earthquakes and floods are low.
Also from the viewpoint of the degree of disaster based on the past earthquake records in the area, the situation of
the seismic activity and other factors of the earthquake area, coefficient Ks - a coefficient determined according to
the properties of the earthquake - around the Deva area is 0.08, which is low enough compared to coefficient Ks of
Japan, which is 0.7 to 1.2. Based on the value of Ks, the risk of earthquakes is low.
As for the ground characteristics, coefficient Tc is 0.7 seconds, and Deva area is classified as the second type ground.
It can be understood that the hardness of the ground is at ordinary degree.
From the above, it can be considered that the risk of natural disaster is low according to Deva area’s past natural
disaster record, the earthquake record and the ground based evaluation index.
Table 4-9 Earthquake Relation Coefficient of Deva

coefficient Deva Japan
Earthquake area coefficient 0.08 0.7 1.2
Ks
Ground period 0.7
Tc (second)
4-11
Table 4-10 Ground Type and Ground Cycle
Ground type Ground period Tc (second) Characteristic
Type 1 ground 0.4 Rigid
Type 2 ground 0.6 Normal
Type 3 ground 0.8 Soft
4-12
(3) Characteristics of Land
1) Soil
Soil monitoring at the project site was conducted from 2016 to 2017. As for monitoring points, points with high
probability of soil contamination in existing CFPP sites such as coal storage area, petroleum storage areas, and fuel
storage areas were selected. The location of these points are displayed in Figure 4-9.
The results meet the environmental standards of Romania as shown in the table below. Although the risk of soil
contamination in and around the site of the Deva CFPP is low, the study team encourage to implement another soil
survey at the relevant place once again before the implementation of this project.
Figure 4-9 Location of Soil Survey Site
Point 1 : Railway station

Point 2 : Coal storage yard
Point 3 : Mintia (out of the map range)
Point 4 : Oil fuel discharge
Point 5 : Transformer oil reservoir
Point 6 : A point 800 m away from the power station site (outside the map range)
Point 7 : Mintia (out of the map range)
Point 8 : Oil fuel storage
(Source: prepared by the study team based on interview with CEH and Google Earth)
4-13
Table 4-11 Results of Soil Monitoring at Deva CFPP
Analysis Analysis Analysis result Regulation
Unit Point Point Point Point Point Point Point Point
target method value *
1 2 3 4 5 6 7 8
Cu 30 63 33 46 49 84 29 21 250
Zn 118 159 112 129 145 216 105 107 700
Pb 85 71 30 42 47 65 25 29 250
Ni 32 50 27 30 41 79 13 32 200
Cd SR EN <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 5
mg/kg
As 15309/2007 <0.1 1 <0.1 1 <0.1 3 <0.1 <0.1 25
Cr 65 97 63 52 65 126 42 53 300
Co 10 20 8 5 6 17 6 3 100
Mn 731 605 695 499 585 620 730 331 2000
SO4 1943 4201 1132 1949 4199 3804 1058 1452 5000
* Regulation value: ORDER No.756/1997
(Source: prepared by the study team based on CEH supply data)
2) Terrain
There are three areas as candidate areas for installation of CCPP to be newly constructed.
In the field survey, no area has undulations in the topography, no topographical constraints have been confirmed for
CCPP construction, and therefore it is assumed that topographical constraints are trifled.
Also, as a reference of the local topography, Figures 4-10 to 13 show in-site photographs taken by the study team
and the floor plan showing the locations where each picture was taken.
4-14
Figure 4-10 Site Surrounding View
4-15
Figure 4-11 Reference Photo 1/3
[1] [1]
Intake mouth Intake water source
[2] [3]
Switch yard District heat supply equipment

[4] [5]
Demineralized water tank Training house

[6] [6]
Demineralized water equipment

Demineralized water equipment
4-16
[7] [7]
Unit 1 area
Stack area when looking at unit 1 to 6
[8] [9]
Flue Service air receiver tank
[10] [11]
Coal yard for unit 1 to 3 Coal yard for unit 4 to 6

[12] [13]
Carriage conveyor Carriage conveyor

4-17
[14] [15]
Slurry equipment (remnant reuse desired) CCPP installation candidate location (Case 3)
[16] [17]
Private property (In case 3, accommodation is necessary) Transformer area

[18] [18]
Transmission system Transmission system

[19] [19]
Circulating water pump Traveling screen

4-18
3) Civil Works
a) Layer
An overview of the layer at the Deva CFPP is shown in Figure 4-14.
The foundation of the main building of the Deva CFPP was built on the foundation rock to bear the following loads.
Allowable value for basic load: 8 deca newton (daN) / cm2
Acceptable value for accidental load: 10 daN / cm2
Fig. 4-14 Overview of the Layer at the Deva CFPP

Geological features Legend
: Vegetable soil layer
: Sand clay layer
: Gravel pebble layer
: Basement rock formations

(Mudstone, sandstone)
: Geologic boundary
b) Foundation work
The study team confirmed the record of 7.1 meters piling at the time of construction of the Deva CFPP, and
confirmed that there are no problems with the foundation.
It is assumed that it is unnecessary to take special countermeasures even if the foundation is refreshed since the new
candidate site is within the existing power plant premises and there is no problem at the existing power plant.
However, since concrete candidate location isn’t decided yet, the study team recommend that measurements of the
layer on candidate construction location be implemented at the detailed designing stage.
4-19
Chapter 5 Basic Design of the Power Plant Equipment
(1) Basic Design of CCPP Equipment
1) Project Outline
The planned CCPP will be installed in Deva site in the Hunedoara region. The net power output will be about
350 MW.
As mentioned in Chapter 4, according to the records around the Deva area in the past five years, the average
temperature is 15.0 ° C. In addition, the highest and lowest temperature around the Deva area in the past is
40 ° C and -29.4 ° C *. Therefore, specifications that enables operation under temperature conditions of -30 °
C to 40 ° C shall be set during detailed designing stage.
* Source: msn Microsoft corporate management portal site
URL: http://www.msn.com/en-us/weather/today/Deva,Hunedoara,Romania/we-
city?iso=RO&el=f1nVUt7%2BwfnEUPGPEEr7QQ%3D%3D
Fuel gas will be supplied by Trans gaz. Also, since the fuel gas supply source pressure (10.5 bar) is lower
than the GT required fuel gas pressure (the required pressure is different depending on Original Equipment
Manufacturer (OEM) but maximum is about 40 bar), installation of the fuel gas compressor is required.
During detailed designing stage, the specifications of the compressor shall be set based on the combustion
gas pressure requirement of GT.
As mentioned in Chapter 3 (2) 2) , fresh water will be supplied by city water and river water near the power
plant site.
As for the cooling system of the steam turbine condenser, the study team evaluated the technology and
economics aspects. As a result, using river water-cooled condenser and reusing open type forced circulation
cooling tower of existing equipment is recommended.
2) Operation Requirements
The main components and their auxiliaries shall be designed to ensure that start-up and operation are achieved
without troubles throughout the designed life time of the CCPP to be newly constructed. Adequate
redundancies for equipment shall be kept to achieve high availability. The main components and their
auxiliaries shall be designed to enable start-up and to reach rated load by pushing a single start button. The
entire plant shall be suitable for continuous load operation. All equipment shall comply with Romanian rules
such as the Romania GC.
a) Plant Requirements
5-1
The new plant shall have high thermal efficiency and reliability. The CCPP to be newly constructed shall be
designed to withstand the anticipated annual operation in this project.
b) Start-up Time Schedule Requirements
The start-up time shall be as short as possible to cope with the function of the CCPP to be newly constructed.
This CCPP shall be designed to meet such a start-up time as specified in table 5-1.
The start-up time for the CCPP to be newly constructed shall be defined as the time from when the start button
is pushed until the rated load conditions are achieved, provided that a condenser vacuum is established and
the CCPP to be newly constructed is ready for start. The start-up time for simple cycle shall be defined as the
time necessary from ignition to rated load. The time for air purging of GT exhaust line and synchronization
shall be excluded.
Table 5-1 Requirement for Unit Starting Time in Each Mode (for Example)
Type of Start-up Time as CCPP (min.) *1 Time as Simple Cycle (min.)*2
Cold start after stop of more than 36 hours Max. 240 Max. 25
Warm start after stop of less than 36 hours Max. 180 Max. 25
Hot start after stop of less than 8 hours Max. 120 Max. 25
Very hot start after stop of less than 1 hour Max. 60 Max. 25
*1. The time from pushing the start button to the rated load.
*2. The time from the ignition to rated load.
c) Service Life Time
The CCPP to be newly constructed and the associated equipment shall be designed and constructed to
withstand the service time as specified below:
Minimum service time = 20 years

Equivalent service hours = 120,012 hours on a rated load basis
(24 × 365 × 20 × 0.685, 0.685: capacity factor)
The CCPP to be newly constructed shall be designed for a continuous load operation with 6,001 actual
operating hours per year on the basis of the rated load. The hours necessary for the starting up and shutting
down cycle are not included in the above operating hours. Throughout the service time, the new plant and the
associated equipment shall continue to be operated with high efficiency, high reliability and excellent
economy.
5-2
d) Start-up and Shutdown Time
The start-up and shut-down operation of the CCPP to be newly constructed shall be performed automatically
from the Central Control Room (CCR).
Full supervisory and control functions shall be provided for the safe, reliable and efficient operation of the
new plant.
The CCPP to be newly constructed shall be capable of being auto-synchronized and initial-loaded from the
CCR.
As a basis for design of the new plant, it is assumed that the new plant shall operate on a rated load basis for
the service time of 20 years, during which highly efficient and reliable operation shall be maintained.
e) Compliance with the Grid Code
All generators connected to the grid system shall comply with the GC. For example, frequency variation,
ability to island, black start capability, etc. must comply with the GC.
3) Plant Performance
CCPP of this project is composed of candidate GT procurable in the current world market and bottoming
system (HRSG and ST system) matching the candidate GT. The performance of CCPP varies depending on the
candidate GT and the form of the bottoming system. In addition, the performance of CCPP also varies
depending on atmospheric conditions and fuel gas properties.
Prerequisites for performance calculation in this survey are as follows.
a) Atmospheric Condition
Based on the survey results mentioned in Chapter 4, atmospheric condition in this project site is as follows.
Type of Site Condition Rated Value

Dry Bulb Temperature 15.0 ° C
Relative Humidity 71.8 %RH
Wet Bulb Temperature 12.1 ° C
Barometric Pressure 101.7 kPa
b) Fuel Gas Properties
Based on the survey results mentioned in Chapter 3, atmospheric condition in this project site is as follows.
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Chemical composition vol. %
Methane 98.9594
Ethane 0.3788
Propane 0.1052
Isobutane 0.0173
Normal butane 0.0146
Isopentane 0.0041
Normal pentane 0.0024
Azole 0.4031
Carbon dioxide 0.1143
total 100.00
Net heating value (LHV)* 49,509 kJ/kg

* calculated by GT-Pro from above chemical component at supply temperature 25.0 ° C
c) Bottoming System Type
CCPP consists of a combination of Brayton cycle (topping system) by GT and Rankine cycle (bottoming
system) by HRSG-ST.
The performance of CCPP varies depending on what kind of bottoming system is planned for the
accompanying GT topping system. Generally, the more complicated the cycle of the bottoming cycle is, the
better the performance of the CCPP will be achieved.
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Figure 5-1 CCPP System Outline
GT System 1
Fuel Gas
Stack
GT Generator
GT Exhaust
GT
Gas
HRSG
Intake Air
ST
GT System 2 Generator
Fuel Gas
ST
GT Generator
Feed Water
GT Pomp
Condenser
Intake Air
Topping System Bottoming System
4) Specification of Power Generation Equipment
ANRE confirmed that the design standard of each power generation equipment needs to comply with the EN
(European Norm) standard.
a) GT and Auxiliary Systems

I) Design Specific Standard
The GT system is basically designed based on the followings.

ISO 3977-3 ‘‘Gas turbines-Procurement-Part 3: Design requirement’’
ISO 21789 ‘‘Gas turbine applications-Safety’’
II) GT
The GT design shall have a minimum number of bearings, and shall be located on a steel frame or on
adequate steel structures and concrete foundation, which size is based on larger of follows, the transient
maximum transmittal torque imposed on the shaft in case of any short circuit of the generator or out-of-
phase synchronization.
GT has a starting device, a lube oil device, an intake air filter device, a fuel gas supply device, a turning
device, and a control and monitoring device as accessory equipment. In addition, it is designed to run safely
with high reliability and high thermal efficiency in the specified fuel gas property range.
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Considering the following, the study team recommend GT to be an indoor type and equipped with an
enclosure that satisfies the noise regulation.
Because Romania has a lot of snowfall in winter, indoor type is preferable considering the operability
(inspection and maintenance).
The leading CCPP (Brazi, Bucharest West) in Romania adopts indoor type.
As a countermeasure against cold climate, in general, it is necessary to install anti-icing system suitable for
the applying GT model. However the installation of the anti-icing system is unnecessary depending on the
model of GT. This simplifies the equipment and reduces the running cost.
By installing the bypass stack, early start of commercial operation by GT simple cycle operation would be
possible, but it is not installed in this project, considering the following disadvantages.
increase in construction cost
decrease in power generation efficiency
Since the power generation efficiency of GT’s independent operation is low, the possibility of future GT’s
independent operation is low in the first place
Regarding the cooling tower, as stated in Chapter 3, since the existing cooling tower’s capacity satisfies
CCPP to be newly constructed required specifications, and the visual inspection resulted equipment’s
condition as good, the existing cooling tower can be reused. However, when operating the existing cooling
tower, it is necessary to operate 2 units. Therefore, if the existing cooling tower is reused for CCPP to be
newly constructed after all existing CFPP are discontinued, it is necessary to consider the operation method
separately.
The control system of GT shall be capable of the following operation.

Constant load operation in all load bands from minimum load to rated load
Governor-free operation
Turbine inlet temperature constant operation
Minimum load operation not exceeding 30% as combined cycle, with all turbine bypass valves closed and
rated load imposed on ST
Automatic gas purge cycle that can remove gas in all exhaust systems up to GT and stack exit
gas purging time is adjustable
Unit does not trip due to load interruption at rated load and can be easy to re-synchronize
The steam for the cooling of the combustor is supplied from the auxiliary boiler at the time of start-up, and
switched to the steam of HRSG when it becomes available.
The GT casing is a horizontal division which enables easy maintenance and easy access to turbine blades
and vanes etc.
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Heat insulation materials and sound insulation materials of GT can be easily replaced by removing them at
regular inspection and irregular inspection. Heat insulation materials are asbestos-free, refractory,
chemically inert material and covered with sheet metal. It shall be designed so that lube oil does not penetrate
heat insulation materials and the sound insulation materials.
Sufficient working space is secured so as not to obstruct the surrounding work around the GT and piping,
cables, walls etc. should not interfere working space.
The journal bearing shall be sleeve type. In the steady operation state, the thrust force in the axial direction
is one direction, and this axial thrust is supported by the thrust bearing. All bearings shall be fluid bearings
and shall be equipped with an outlet lube oil thermometer / monitoring device and a vibrometer / monitoring
device. The monitoring device sends an alarm or trip signal according to the manufacturer's standard.
The important part inside the GT should be checked by borescope.
III) Starting System
The starting device and its power supply shall be suitable for accelerating the GT generator, purging for a
long time and compressor washing operation.
The rating of the starting device is designed considering that start and accelerate torque can be generated
with proper margin from the stopped state to the rated rotational speed within 25 minutes (excluding the
time required for purging and synchronization) under the atmospheric conditions of all the specified range
of the GT generator.
There are two possible ways of starting devices for large capacity GT generators.
Thyristor starting method (by synchronous generator / motor and thyristor (stationary frequency
converter))
Torque converter starting method (with cage type electric motor and torque converter)
It is desirable that the starting device has no restriction on the times of continuous start-up.
If the lube oil pressure is not sufficient to rotate the GT generator, an interlock is made so that it can’t start-
up.
The starting device automatically stops after getting disconnected with GT before reaching the maximum
permissible rotational speed. Normally, the starting device gets disconnected with GT when the GT reaches
the self-supporting speed or the no-load rotational speed, and this device is stopped during normal operation.
If disconnection fails, the starting sequence is automatically canceled.
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When the generator is at the standby state, the generator can start-up immediately from any stopped state,
despite what caused the stoppage.
The starting device includes a start preparation operation such as a turning operation, and enables manual
and automatic start as follows.
Manual start : The start-up sequence proceeds to cranking, purging, igniting, holding at the minimum
governor setting rotational speed, and shifts to the next step.
Automatic start : The start-up sequence automatically proceeds to the lowest governor setting speed,
automatically prepares for Synchronization or a preset load.
The starting control device has an automatic purge function to ensure safe operation.
IV) Lube Oil System
The lube oil system is basically designed according to the latest version of API 614 or requirement of
equivalent standard. The lube oil system is supplied to ST, GT, generator and exciter bearings and includes
a jacking oil system (if applicable), an oil purifier and a GT generator oil drain system.
The lube oil system holds the lube oil necessary for the operation of ST, GT, generator and exciter. Lube oil
is supplied to each bearing at the oil amount and pressure satisfying the system requirements of each oil
pump, and lube oil that finished work is recovered again in the main oil tank according to the loop system.
Strainers and an oil purifier are installed to remove dust contained in the oil collected from each bearing.
The lube oil system is equipped with a spare machine that can secure the oil amount and pressure so as not
to hinder the plant operation even when the oil pump stops due to problems or the like. When site power
source is lost such as blackout, it prevents bearing damage by emergency oil pump to automatically operate
by using DC power supply.
In the multi-shaft combined cycle, it is necessary to install an oil purifier in the lube oil system of ST to
remove moisture by turbine shaft seal steam or the like.
For the stable operation of ST, GT, generator etc., the following alarms are mainly provided for the lube oil
system. When abnormal state continues, the unit is stopped to protect the equipment.
Lube oil pressure low
Lube oil tank level low
The lube oil system is equipped with a fire extinguishing device available to extinguish the lube oil in the
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oil tank and around the bearings of ST, GT, generator etc..
As lube oil deteriorates by use and becomes a factor of troubles such as poor lubrication, the lube oil is
regularly replenished or replaced in order to restore the properties. Lube oil deterioration depends on
operation conditions, and replenishment and replacement timing becomes fluid, so it is
necessary for lubricant to be procured locally.
Figure 5-2 shows an example of the lube oil system.
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Figure 5-2 An Example of Lube Oil System
Starter motor
Torque converter
Turning device
GT
Generator
For torque To turbine Main oil pump

converter bearing
operation
Pressure
control
valve
From turbine
Strainer bearing
Oil cooler
Auxiliary oil pump
Strainer Turning oil pump
Emergency oil pump
Exhaust fans
Main oil tank
V) Fuel Supply System
The combustion equipment of GT shall be a gas-burned design corresponding to the specified fuel gas
properties of domestic Romania.
The terminal point of the fuel gas piping is located at the power plant boundary. By this survey, it was
confirmed that the pressure at the terminal point was 10.5 bar. Distribution data of dust particles necessary
for the design of pretreatment equipment is investigated during detailed designing stage.
As mentioned in Chapter 3 (1) 8), existing equipment can be reused to the fuel gas receiving station, and it
is necessary to install equipment after the fuel gas receiving station.
Fuel gas supply system will have the below equipment to adjust gas condition for firing in gas turbine.
Shut-off valves
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Flow meter
Separators for removing foreign substance
Gas compressor or gas pressure reducing equipment (If necessary)
Gas heaters (If necessary)
Gas flow and pressure regulating systems
Gas detectors
Fire extinguish system
Gas sampling systems (if required)
Figure 5-3 Preliminary Flow Diagram of Gas Supply System
Specifications of these equipment are determined for the selected gas turbine requirements and gas
specification. Terminal specification of the gas treated in fuel gas supply system should be confirmed by
GT supplier during the tendering period.
Conditions necessary for designing other fuel gas supply equipment are investigated during detailed
designing stage.
VI) GT Intake System

i) General
Air supplied for GT combustion is taken in through the inlet port installed outside the GT building.
The intake port is installed in such a position so as not to take in exhaust gas from the stack of HRSG.
The hood is designed to enable easy maintenance of the air intake filter. After passing through the filter,
the supplied air is guided to the inlet of the GT's compressor. The intake system consists of an inlet
louver, a filter (multistage type), a sealed type duct from the filter to the compressor, a screen for
protecting foreign matter, and a soundproof equipment. The number of inspection ports for maintenance
inspection of the intake section should be minimized.
The GT may be equipped with the inlet air cooling system to augment the GT power output.
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Figure 5-4 shows an example of a three-stage intake filter system.
ii) Intake Filter System
The intake filter collects dust in the air and has a multistage dry filter to prevent damage to the GT
compressor blades and vanes.
The intake filter is selected the one suitable to reduce the sand and the salt content in the atmosphere to
the level that does not impair the GT life under the most severe conditions of the site.
The design of the intake air filter is made so as to minimize the pressure loss of the intake system. A
differential pressure monitoring equipment of each stage filter is installed.
iii) Intake Duct
The intake duct is composed of expansion joints, guide vanes, support legs, supporting steel structures,
vibration isolators, and silencers.
Expansion joints are installed so that loads and forces are not applied to the intake flange of the GT in
order to follow the expansion and contraction and vibration caused by the change in intake air
temperature.
Nuts, bolts, rivets are not used on the inner surface of the air intake duct,,which is installed after the
filter ,to prevent contamination of the GT.
iv) Silencer
A silencer packed with sound absorbing material in the panel case is provided to reduce the noise leaked
from the suction port to a specified level through the duct from the GT compressor.
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Figure 5-4 An Example of three-stage Intake Filter System
v) GT Inlet Air Cooling System
There are mainly three types of inlet air cooling system as follows, and the features of each type are
shown in Table 5-2.
Evaporative type
Fogging type
Chiller type
In the case of the chiller type, the intake air is cooled by the heat exchanger installed in the intake duct.
In the case of the fogging type, demineralized water is sprayed from the nozzle installed in the intake
duct. In the case of the evaporative type, demineralized water flows down inside the equipment
installed in the downstream of the intake air filter. The intake air is cooled by utilizing the latent heat of
evaporation. Unlike the chiller type, if the fogging type or the evaporative type is selected, relative
humidity rises because the amount of moisture contained in the inlet air increases.
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Table 5-2 Features of Inlet Air Cooling System
Chiller Fogging Evaporative Cooling
Air cooling coil located in the inlet The water droplets evaporate Install the eliminator in the
air duct room cools intake air by quickly, and inlet air is cooled. downstream of the intake air filter
Type supplying cold water from chiller and let the demineralized water flow
system. down. The intake air is cooled by
falling water evaporation.
Configuration
• Relatively high increase of the gas • Low auxiliary power consumption • Low auxiliary power consumption
turbine output • Low installation and operation • Construction equipment is simple
Advantage
• Air can be chilled regardless of cost and easy to operate
humidity • Installation required area is small • Relatively low water consumption
• Effect is lower in humid climates
• There is intake pressure loss even
• High installation cost • Effect is lower in humid climates when not in use
Disadvantage • High auxiliary power • Relatively low increase in the gas • Relatively it has the lowest increase
consumption turbine output in the gas turbine output (Because
of low evaporation efficiency
compare with fogging type)
VII) O&M
The main components of CCPP are GT, HRSG, ST and generator. Especially GT operates with high
temperature combustion gas, so cracks, corrosion, oxidation, deformation and coating peeling of hot parts
such as combustors, stationary blades, and rotating blades are likely to occur. Therefore, it is common to
determine the regular inspection intervals based on the life of the GT hot parts. And, regular inspections for
the ST, generator and HRSG are generally carried out during the GT inspection period. In addition, it is
recommended to decide on the GT regular inspection period based on EOH considering the total start and
stop times, instead of the actual operation hours. The operation and maintenance (O&M) cost to be
considered in this project are shown below.
- Long Term Service Agreement (LTSA): Expense and assumption after commercial operation (included
in loan)
- Maintenance cost other than LTSA (ex. labor costs, chemicals)
- Training costs
- Spare parts costs
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i) Examination of the LTSA
Among the main equipment of CCPP, the GT has the highest failure rate, and its maintenance level greatly
affects the operation rate of the entire plant.
Hot parts of the GT, which are exposed to gases of 1,000 ° C or more, will be seriously deteriorated and
damaged. Therefore, manufacturers have set the expected life for each of these hot parts and the
recommended inspection intervals of the GT. Normally, it is necessary to inspect, repair, and replace these
hot parts in accordance with the inspection interval until the service life is reached. An example of the
inspection interval of the GT is shown in Table 5-3.
Table 5-3 Inspection Interval by Type (Example)
Type of Inspection Inspection Interval/ EOH

Combustor Inspection 12,000 hour
Hot Gas Pass Inspection 24,000 hour
Major Inspection 48,000 hour
Because the hot parts of the GT are made from superalloy materials of high heat resistance, special
techniques and special equipment are required for the repair of these parts. Therefore, most users request
the GT manufacturer or other repair company to repair them.
ii) Characteristics of GT long-term maintenance contract
In the operation of CCPP, it is common to sign long-term maintenance contracts, namely LTSA, between
the owner and GT manufacturer. The GT manufacturer does overall maintenance of GT for a certain
period of time. Generally, the contract term is from the contract date to the major inspection.
The characteristics of the LTSA are summarized in Table 5-4.
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Table 5-4 Characteristics of the LTSA
LTSA Individual Order
Management of
inspections, repairs, Packaged management by supplier Management by user
replacements for hot parts
Remote monitoring by supplier

Operation status
Contributing to improved operation Monitoring only by user
monitoring for GT (option)
ratio
Stationed engineer (option) Yes No
Ensured operation ratio

Yes No
(option)
Packaged price and payment of a set Payment of price

price each month corresponding to repairs and
Payment of inspections, The same level or less than total price replacements for each
repairs, replacement costs of individual ordering inspection
for hot parts Supplier is charged for unexpected User is charged for
repairs and replacements (excluding unexpected repairs and
the case of user responsibility) replacements
In the case of the LTSA, the provider collectively manages the necessary range and timing of inspection,
repair and replacement of hot parts, instead of the user. In addition, as an optional scope, the supplier also
provides a service to monitor the operation status of the plant in real time at the remote monitoring center
of the supplier by introducing a remote monitoring system. This service will provide the user with the
notification of anomaly during the plant operation and support the trouble shooting when a trouble occurs.
As a result, this service can contribute to improving the operation rate.
Furthermore, in the case of adopting the LTSA, the cost of inspection, repair and replacement of hot parts
can be set as a package price. Since these expenses are determined at the time of contract, it is possible to
stably manage by leveling the variable costs of large fluctuations such as unexpected repair and
replacement of the hot parts.
iii) Introduction of the LTSA into this Project
As described in Chapter 6, since the LTSA would greatly contribute to the stabilization of the CCPP to be
newly constructed operation and company management, it is a welcomed process from the viewpoint of
financial arrangements. Therefore, the study team recommends to include LTSA to initial package for this
project.
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b) HRSG and HRSG Auxiliaries
I) General
HRSG is the equipment that supplies steam to the steam turbine, which is generated by recovering the
residual heat of the exhaust gas from the gas turbine. HRSG is classified into several categories depending
on the flow direction of gas turbine exhaust gas in HRSG, the method of circulating the internal fluid of
the evaporator of HRSG, and whether the steam turbine exhaust is reheated or not. The classification is
shown in the table 5-5.
Table 5-5 Classification of HRSG Category

Exhaust Gas Flow Fluid Circulation
Reheating Pressure
Direction Method
Horizontal Gas Flow Type Natural Circulation Non-Reheating Type Single-Pressure Type
/Vertical Gas Flow Type / Forced Circulation / Reheating Type / Multiple-Pressure Type
The design of HRSG is outdoor type and the HRSG is designed to accept the maximum exhaust flow rate
at GT rated load at the specified minimum ambient temperature. The heat transfer surface is designed
taking into account the variation pattern of the temperature / flow rate of the GT exhaust under various
atmospheric conditions and GT load.
HRSG shall be such that excessive thermal stress does not occur against start and stop conditions specific
to GT. HRSG is designed to operate with GT exhaust when burning specified fuel gas.
As mentioned in this chapter (1) 4) a) II), since the bypass stack has many disadvantages in this project, it
is not installed.
HRSG shall generate steam under prescribed conditions while minimizing exhaust pressure of GT. The heat
transfer module is shipped as large as possible to satisfy the transportation condition in order to shorten the
installation period.
Figure 5-5 shows an example of a vertical HRSG.
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Figure 5-5 An Example of a Vertical HRSG
The capacity of the drum shall be such that the HRSG will not trip before the auxiliary feedwater pump is
activated if one boiler feedwater pump trips.
HRSG is constructed with drums, heaters, reheaters, evaporators, economizers, headers, downpipings, and
accessory piping and is supported by the steel structure. This structure is independent from other buildings,
except for connecting parts such as a passage, a pedestal, a staircase, etc. necessary for inspection and
maintenance of HRSG.
HRSG is designed with outdoor specifications and is equipped with a roof and enclosure to protect people
and equipment (drum accessories, valves and circulation pump) from the external environment.
HRSG and accessories and accessories are considered to be able to handle both rated load and partial load,
especially in the design of parts and structures. HRSG is designed so that temperature matching with ST
can be performed in both constant pressure operation and variable pressure operation.
It has a door for maintenance and inspection which makes it easy to inspect the gas flow path part of the
HRSG, the heat transfer pipe and other pressure resistant parts, and the structure of the door has a seal
structure to prevent gas leakage to the atmosphere.
II) Design and Operating Conditions
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HRSG is designed to be suitable for normal and abnormal operating conditions of CCPP based on
operational records. The gas side of the HRSG is designed to correspond to the maximum temperature,
pressure and flow rate of the gas in all predicted operating conditions (including trip).
Upon rated load interruption, the thermal load of the HRSG is discharged to the condenser by the bypass
system without operating the safety valve.
The HRSG is planned to be started at the same time as the GT and is designed to be able to continuously
operate efficiently in the rated load operating range of GT.
Water quality of feed water should meet HRSG and ST requirements according to applicable standards.
III) Design Standards
All design, manufacture, construction, test, inspection shall be in compliance with applicable standards,
standard provisions or recommendations. All pressure-resistant parts, accessories and assemblies are
designed, constructed and inspected according to the requirements of approved inspection agencies.
IV) Design and Structure of HRSG

i) Exhaust Gas Flow Direction
The boiler main body is classified into vertical type and the horizontal type depending on the direction of
gas flow. Regarding the exhaust gas flow direction of HRSG, in the case of adopting the same type as gas
turbine, the degree of performance is almost the same for both the vertical type and the horizontal type.
The horizontal type of HRSG can get circulating force from the difference in fluid density caused by the
heat transfer tubes vertically arranged, so the natural circulation is adopted for this type. For the vertical
type the heat transfer tubes are horizontally arranged, so there is either a natural circulation (circulating
force is secured by a drum height) or a forced circulation (boiler water is forcibly circulated by pump).
The features of each type are shown Table 5-6.
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Table 5-6 Exhaust Gas Flow Direction Comparisons
Description Vertical Gas Flow Type Horizontal Gas Flow Type
Installation Area Base Large
Height of HRSG Base Low
Scaffold for Internal Inspection Unnecessary Necessary
Support of Heat Transfer Tube Suspension Type Bottom Support or Top

Support
Circulation System Natural or Forced Circulation Natural or Forced Circulation
Operability Base Same
Equipment Cost Base A little lower
Operation Cost Base Same

ii) Fluid Circulation Method
HRSG could be natural or forced circulation type. In natural circulation units, the thermal head
differential between water and steam-water mixture is responsible for circulation through the system.
In forced circulation units, Boiler Circulating Pumps (BCPs) circulate the steam-water mixture through
the tubes of the evaporator to and from the drum.
Advantages claimed by the forced circulation design, are their quick warm/ hot start-up capabilities.
However, natural circulation designs do not need circulation pumps to maintain the circulation of steam-
water mixture through the evaporator tubes. Therefore, they can save operating costs and relieve concerns
about pump failure or maintenance. The probability of the usage of natural circulation type HRSGs is
higher because of the absence of the critical rotating equipment such as the circulation pumps.
There is no difference in cold start-up time because the bulk of the time is spent on heating the metal and
the water of the evaporator module in the transient heat up phase. This process is nearly the same whether
it is a natural or a forced circulation HRSG. In summary, both natural and forced circulations HRSGs are
widely used in the industry, while the natural circulation design has a merit over the forced circulation
design as discussed above. Hence the natural circulation types HRSG are proposed for this project.
iii) Heat Transfer Tube
The heat transfer tube shall be a drawn steel pipe or an electric resistance welded steel pipe based on
experience of the manufacturer. The design, manufacture and testing of heat transfer tubes shall comply
with applicable standard specifications.
Appropriate circulation ratio is set in order to minimize disturbance of water circulation which can occur
5-20
at the time of rapid start-up and load change.
The heat transfer tube has a spiral fin attached to its outer surface by welding. By improving the heat
transfer characteristics by expanding the heat transfer area, the number and length of the heat transfer
tubes are reduced, thereby making the entire HRSG compact.
All welded connections between the heat transfer tube and the header shall be located outside the gas
path and shall be maintainable.
iv) Superheater and Reheater
The arrangement of the superheat pipes of the high pressure superheater is such that when the
temperature of the steam supplied to the ST is at the assumed maximum ambient temperature and the GT
is operated at the continuous base load, the temperature reduction function is not used and the steam of
the ST is designed not to exceed the temperature limits of steam valves and ST rotors.
The superheater and the reheater correspond to the constant pressure operation and the variable pressure
operation and are designed to correspond to the change characteristics of the exhaust gas flow rate of GT.
The high pressure, medium pressure and low pressure superheater are designed so that the steam flow
rate in the heat transfer tube is uniformly distributed in the rated load range. The superheater and the
reheater are designed to have a structure that allows drain to be discharged completely and design
considering operation without steam at start-up.
v) Evaporator
High pressure, medium pressure and low pressure evaporators are designed so that they can operate
without vibration in the rated load range and evenly distributed in the heat transfer tubes. Element of the
evaporator shall be structured to drain.
vi) Economizer
High pressure, medium pressure and low pressure economizers are designed to operate stably in a single-
phase flow of fluid alone throughout the rated load range of HRSG, and the elements of the economizer
are drainable.
vii) Condensate Preheater
The condensate preheater is provided as the final heat recovery module in order to maximize the exhaust
heat recovery efficiency by lowering the temperature of the exhaust gas discharged from the HRSG. The
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condensate preheater is designed to withstand the cutoff pressure of the condensate pump.
viii) Steam Temperature Control
The outlet steam temperature of the superheater and reheater is controlled by a direct spray type
temperature reducer. The capacity of the temperature reducer is determined taking all the operating
conditions into account.
The temperature reduction spray water adjustment valve is equipped with an electric stop valve on the
common line, and when the steam temperature falls below the set temperature, the stop valve is
automatically closed by interlock to prevent water induction to ST.
ix) Safety Valve
The number, capacity and installation position of the safety valves are specified according to the
requirements of the relevant international standards. The capacity of the safety valve such as the
safety valve at the superheater outlet and the drum is planned considering the maximum
evaporation amount of HRSG and the like.
x) Thermal Insulation of the HRSG and Safety Valve
The inner and outer surfaces of the whole HRSG are kept warm and the outer insulation is applied to an
all-weather-type suitable for outdoor installation.
The heat insulating material shall be suitable for continuous operation at the maximum operating
temperature.
xi) Inspection Door
For maintenance and cleaning of the gas path and pressure resistant part of the HRSG, install inspection
doors of an appropriate type and size that can freely enter and exit the part.
xii) Blowdown and Drainage
The seat of the continuous blowdown is provided on the drum. The seat is provided at a position where
the condensed drum water can be discharged preferentially, and the isolation valve and the throttle valve
of the parallel slide are provided in a place where the operation can be inspected near the seat. HRSG is
equipped with continuous blowdown and continuous blowdown tank.
Appropriate number of electrically operated valves are installed as blowdown valve, super heater,
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reheater drain valve, and they are automatically opened and closed during HRSG start, load, stop
operation.
xiii) Economizer Recirculation System
In order to protect the economizer from corrosion due to dew condensation of the carbonate-containing
exhaust gas, by providing the economizer recirculation pump, the inlet feed water temperature of the
economizer is kept higher than the temperature prescribed by HRSG manufacturer.
xiv) Reheating / Pressure
In the HRSG, there are the single-pressure type with steam pressure level and the multiple-pressure type
with two or more steam pressure levels. And there is additionally the reheating/ multiple-pressure type
with an additional reheater.
Although the multiple-pressure type has a more complicated system, and is more expensive than the
single-pressure type, the former can improve heat recovery from gas-turbine exhaust gas, and thus
improve plant efficiency.
In recent years, along with the increase in efficiency and capacity owing to enhancement of combustion
temperature of the gas turbine, the steam system has come to use higher temperature / pressure and a
reheating system, resulting in wider use of the reheating / triple pressure type, which has a more
increased plant efficiency.
xv) Others (Duct Burner)
As a result of field survey, there is no need to consider the duct burners. Therefore, the HRSG will not be
furnished with duct burners.
c) ST and ST Auxiliaries
ST equipment consists of turbine body and auxiliaries such as condenser, deaerator and pumps.
Figure 5-6 shows an image of a uniaxial ST (bird's-eye view). ST is a mixed pressure reheating type, and
the steam which worked in the ST high pressure section is heated by the reheater of HRSG, the steam again
flows into the ST medium pressure section and works in the turbine. Thereafter, steam is introduced from
the medium pressure part to the low pressure part, but at that time it is mixed with the HRSG low pressure
steam. Steam at the outlet of the low pressure turbine is cooled by heat exchange with river water in the
condenser thin tube installed in the lower part of the turbine or circulating water in the cooling tower and
returns to water and is reused as feed water for HRSG.
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The ST shall be of a manufacturer's standard proven design and structure in order to enable economical and
reliable service with minimal maintenance work. ST and auxiliaries shall be designed to operate
continuously under all specified operating conditions for the specified lifetime of the plant.
The maximum possible output of ST is planned with steam pressure, temperature and flow rate generated
from HRSG when operating under ambient conditions with GT operating at the maximum possible output.
ST is equipped with a condenser, a lubricating oil device, a control hydraulic device, a steam stop valve, a
regulating valve, a governor, a turbine bypass device, a control and monitoring device, etc. as an accessory
equipment, and the electrohydraulic control device is adopted.
The condenser may be surface type, single body, single flow type flowing in only one direction, or two flow
type flowing in two directions. As a material of the cooling pipe for performing heat exchange between the
cooling water and the turbine exhaust, titanium or stainless steel or the like is generally used since it is in a
corrosive environment.
There are various types of deaerators such as spray tray type and spray agitation type, but spray tray type is
representative for large plants.
Table 5-7 Specifications of ST Auxiliaries

Item Specification
Condenser Single-cylinder
Deaerator Spray tray formula
Condensate pump 100%×2
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Figure 5-6 Bird's Eye View of Steam Turbine (Image)
(Source: MHPS HP)
Table 5-8 Condenser Specification

Item Specification
Type Surface type, single pressure, single body, 1 or 2 fold type
Pressure in the condenser 4.8 kPa
Coolant tube material Titanium, stainless steel
Condenser support method Concrete foundation
Related equipment Condenser thin tube cleaning equipment
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d) Generator and Generator Auxiliaries
I) Outline of Electrical Power System
The proposed multi-shaft type CCPP consists of three generators, two GT generators and one ST generator.
The electrical power generated by the generator is stepped up to 220 kV by the generator step-up transformer
(GST) and transmitted to the adjacent Mintia substation.
The power supply to the auxiliary equipment connected to the station power bus is supplied from the
substation via the unit auxiliary transformer (UAT) and the start-up auxiliary transformer (SAT) when power
plant is in start-up operation, and it is supplied from the substation via the SAT when generator is not operated.
Besides, if the generator circuit breaker is installed, it is not necessary to install the SAT because it is possible
to supply power from the grid via GST and energizes UAT even while generator is not operated.
Electrical power is supplied from the bus connected to the emergency diesel generator to equipment (such as
oil pump for bearing, sealing oil system, battery charger and emergency light) that cannot be stopped at the
time of blackout.
II) Codes and Standards for Design
Electrical equipment are basically designed based on the IEC standard established by the International
Electrotechnical Commission (IEC).
III) Generator
The structure of typical generator is shown in Figure 5-7.
Figure 5-7 Generator Structure Example
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A cooling system for generator stator is selected, depending on manufacturer’s circumstances and etc.
There are three types of cooling systems for generators as shown in Figure 5-8.
Figure 5-8 Generator Stator Cooling System by Generator Capacity
Generator Capacity MVA

0 100 200 300 400 500 600 700 800 900 1000 1100 1200
Air Cooling
Hydrogen Cooling
Water Cooling
(Source: Mitsubishi Electric Corporation, Turbine Generator General Catalog (January 2016) version)
For small to medium capacity generators, an air cooling system is generally adopted because of a simple
structure and good maintainability. For medium to large capacity generators, a hydrogen cooling system is
adopted because those generators require higher cooling performance than air cooling system.
Hydrogen gas used for the hydrogen cooling system has the following characteristics.
i) Since the density is low, windage and friction loss are small and the efficiency of the generator can be
improved.
ii) Since the thermal conductivity is high, the cooling effect is high and the generator can be miniaturized.
iii) Since it is inactive, its impact on deterioration of the insulation is small and the lifetime of the insulation
can be long.
On the other hand, hydrogen gas may explode in the range of 4 to 75 (vol %) when mixed with air, so that the
generator frame should be kept in a sealed structure not to make up explosive gas mixture. For this reason,
accessories such as sealing oil devices and gas concentration control system are required and maintenance
becomes complicated. The feature comparison of these cooling systems is summarized in Table 5-9.
In the 300 MW class CCPP to be studied this time, it is preferable to adopt the air cooling system from the
capacity etc. It will be selected in accordance with the GT model.
Table 5-9 Feature Comparison of Generator Stator Cooling Systems
Item Air Cooling Hydrogen Cooling Water Cooling

Cooling Performance Low Medium High
Number of Accessories Small Large Large
Efficiency ~98.8 % ~99.0 % ~99.0 %
Maintenance Work Easy Complicated Complicated
(Source: Mitsubishi Electric Corporation Turbine Generator General Catalog (January 2016) version)
IV) Generator Accessories

i) Generator Cooling System
The necessary accessories are different depending on the cooling system of the generator, and
representative devices are described here. In the case of adopting the air cooling system, the following
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accessories are unnecessary.
Sealing oil system
The sealing oil system is installed to seal the hydrogen which cools the stator and the rotor in the
generator. This system creates an oil film (sealed portion) using a seal ring in the gap between the
rotating part and the stationary part, and prevents hydrogen gas in the generator from leaking out of
the generator along the rotor axis.
There are two types of sealing oil treatment system: single flow type (vacuum treatment type) and
double flow type. The single flow type is a method in which the sealing oil is made clean oil
containing no impure gas such as air by vacuum treatment and is sent to the seal part. On the other
hand, the double flow type is a method of separating the oil line that absorbed air in the sealed portion
and the oil line that absorbed / dissolved hydrogen gas, and preventing escape of hydrogen gas
absorbed in oil to the outside.
At present, a single flow type (vacuum treatment type) is mainly adopted.
Hydrogen gas supplying system
In order to prevent hydrogen gas from mixing with air, the hydrogen gas supplying system is installed
to fill the generator with hydrogen, replenish hydrogen gas and control the pressure during normal
operation, and discharge hydrogen gas and replace with air in the case of emergency. In general, the
hydrogen gas supplying system is configured in combination with the carbon dioxide gas supplying
system and the nitrogen gas supplying system which are necessary for gas replacement.
Stator water cooling system
The stator water cooling system is installed to supply highly pure water to the stator coil of the water-
cooled generator. This system sends water with increased purity in the ion exchange resin device to
the water storage tank, pressurizes the cooling water from the water storage tank with a pump, and
sends cooling water into the conductor of the stator coil via a cooler and a filter.
ii) Generator Excitation System
Excitation System
Typical generator excitation systems adopted in thermal power plants are the AC excitation system
(brushless excitation system) and the static excitation system (thyristor excitation system), which are
classified according to the difference in the power supply devices. The configuration and features of
these excitation systems are shown in Table 5-10. It will be usually selected by the manufacturer in
accordance with the GT model.
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Table 5-10 Comparison of Generator Excitation Systems
AC Excitation System Static Excitation System
Item
(Blushless Excitation System) (Thyristor Excitation System)
Configuration
(1) AC Exciter(Including Rotary Rectifier) (1) Excitation Transformer

Accessories (2) permanent magnet generator (2) Rectifier Board
(3) Slip Ring
- The output of the AC exciter is converted to - The thyristor excitation system is composed
DC by a semiconductor rectifier on the same of stationary devices and directly supplies the
rotation axis to supply the field current. field current to the generator by the thyristor.
- The field current is controlled by changing - The field voltage is adjusted by controlling
the voltage of the AC exciter. the firing angle of the thyristor. Since there is
- Since the rectifier and the AC exciter are no time delay due to the field winding of the
Feature rotated together, a slip ring is unnecessary. exciter, the response speed of the excitation
system is extremely fast. Therefore, it is
suitable for peak loading.
- Although the excitation power is supplied via
the excitation transformer, a power source for
initial excitation is required.
- Since there is no slip ring, care of the slip ring - Care of the slip ring surface, inspection of the
surface, inspection of the brush folder, brush folder, replacement of the brush is
Maintenance replacement of the brush is unnecessary. necessary.
Work
- Diodes and fuses of rotating rectifiers need to
be replaced according to operation time.
Automatic Voltage Regulator (AVR)
AVR is installed to maintain the generator voltage at a specified value regardless of grid voltage
fluctuation, load fluctuation, accident or disturbance. The main purpose of the AVR is to stabilize the
grid voltage, improve the stability of the generator, protect the generator (overvoltage / overcurrent
protection), and adjust reactive power. The AVR includes the following functions.
• Voltage regulator (90R)
• Field current regulator (70E)
• Over Excitation Limiter (OEL)
• Under Excitation Limiter (UEL)
• Power System Stabilizer (PSS)
• Other necessary functions
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V) Generator Main Circuit Equipment
i) Isolated Phase Busduct (IPB)
The isolated phase busduct is adopted for the circuit with extremely large flowing current and short-circuit
current between the generator and the GST / UAT in order to have the function of flowing large current
from the generator to the GST and UAT. In addition, the IPB is enclosed in a grounded metal enclosure
which completely separates the conductors of the respective phases, which is a highly reliable bus without
the risk of short-circuit between phases.
In large capacity generators, air-cooled type by cooling fans is adopted for the IPB, but natural-cooling
type is adopted in the multi-shaft type CCPP proposed this time.
ii) Generator Neutral Grounding Equipment
The generator neutral grounding equipment is installed to prevent abnormal voltage generation when an
ground fault occurs in the generator main circuit including the generator, and to reliably detect failures in
the protective relay by applying an appropriate current to the failure point and to eliminate the failure
promptly. The generator neutral grounding methods include the transformer grounding method in which
a grounding transformer is installed at the neutral point and a resistor is connected to the secondary side,
and the resistance grounding method in which a resistor is directly connected to ground. In order to
prevent the ground current from unnecessarily increasing and to prevent the abnormal voltage at the time
of a ground fault failure from becoming excessive, the basic specifications of the grounding equipment
are determined in consideration of flowing a resistance component current corresponding to the charging
current due to the ground capacitance of the device connected to the main circuit.
VI) Transformer
In general, the transformer is installed for transmission of the generated power, supply of station power, and
power supply when stopped. Transformer specifications are indoor / outdoor type, air-forced cooling type /
air-natural cooling type, 3 winding type / 2 winding type and so on. The transformer is classified as shown
in Table 5-11 according to the cooling medium which directly cools coil and core of the transformer and the
circulation method of the surrounding cooling medium which cools them. It will be selected by in accordance
with the capacity and ambient conditions of the transformer, etc.
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Table 5-11 Transformer Cooling System
Oil-natural Air-natural Oil-natural Air-forced Oil-directed Air-forced
Model
ONAN ONAF ODAF
Schematic
1,000 MVA
Capacity 100 MVA 130 MVA
low base High
Cooling effect
few base much
Auxiliary
air-cooling fan air-cooling fan, circulation pump
machine
easy base Difficult
Maintainability
low loud loud
Noise
Oil-natural Air-natural type (ONAN) is widely adopted because there are few auxiliary equipment and
maintenance is easy. The transformer is cooled by the flowing circulation of the oil. In the Oil-natural Air-
forced type (ONAF), air cooling fans are attached to radiators to improve the heat dissipation effect. It is
expected that the cooling efficiency can be improved by about 20% to 30% compared to oil-natural Air-
natural type. For large capacity transformers, Oil-directed Air-forced type (ODAF) is adopted. It forcibly
circulates the oil by the pump to increase the cooling efficiency.
VII) Cable
The connections to the dead-end transmission towers, which are the point of interconnection between the
generator step-up transformer and the electricity transmission company, need to consider interference with
the existing power plant equipment. The study team are planning to use cables from the generator step-up
transformer to the vicinity of the dead-end transmission tower and connect to the dead-end transmission tower
by rising the overhead conductors through the cable head.
There are two types of cables, CV cable and OF cable. The CV cable is lightweight and has good workability,
and the OF cable uses insulating oil to prevent entry of moisture. (Table 5-14).
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Table 5-12 Power Cable Comparison
CV cable OF cable
Configuration
Description The insulating material adopts cross-linked The conductor is wound with insulating paper
polyethylene which is excellent in electrical and insulating oil is filled inside of the cable.
characteristics (dielectric strength / dielectric The insulating oil is supplied from the external
loss tangent). This cable is co-extruded in three oil tank into the cable. The interior of the cable
layers of an inner semiconductive layer, an is always filled with insulating oil above
insulator and an outer semiconductive layer, atmospheric pressure.
and is provided with a flame retardant vinyl
sheath to protect the insulator from wound,
moisture and harmful substances.
Advantage - It is lighter in weight than the OF cable and - It is electrically stable. (no void due to
it has good workability temperature change and no moisture
Characteristic
- Equipment can be simple (lubrication system penetration.)

etc. is unnecessary)
Disadvantage - Degradation of the insulator may occur due - Equipment to supply insulating oil etc. is
to the tree phenomenon.( ) required.
- Bending characteristics are bad, cable weight
is heavy.
tree phenomenon: If the solid insulator is relatively thick, the electric field concentrates at the tip of the void
or impurity in the insulator. Discharge or local destruction occurs in this part. As a result,
pit-like degradation is caused. Tree phenomenon is a phenomenon that the pit-like
degradation develop as a dendritic (tree) destruction path.
Currently, the CV cable is also commonly used even in the 220kV class, but the study team will consider it
taking comprehensive consideration such as reliability, operability, economy and so on.
VIII) Electrical Power Supply and Distribution System
The electrical power generated by the generator is stepped up to 220 kV by the GST, and transmitted to the
gird via the substation. However, a part of the electrical power generated by the generator branches at the
generator main circuit, is stepped down by the UAT, and is supplied to each auxiliary equipment of the power
plant.
The power supply to the unit auxiliary equipment is supplied as follows.
i) The medium voltage auxiliary power supply is supplied from a medium voltage enclosed switchboard
(metal clad switchgear) connected to the UAT low voltage side. The low voltage auxiliary power supply
is supplied from a low voltage enclosed switchboard (power center switchgear / control center)
connected to the unit substation transformer low voltage side. Besides, it will be selected considering
capacity and usage conditions whether to apply the power center or the control center.
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ii) The control power supply and the lighting power supply are supplied from the distribution board which
is stepped down from the control center.
iii) The uninterruptible power supply (UPS) is installed for a computer that requires a stabilized power
supply with less fluctuation in voltage and frequency, without worry of power failure.
iv) The emergency diesel generator (EDG) is installed in order to safely stop the power plant even at the
time of blackout due to the power plant internal accident or grid accident, and to continue plant condition
monitoring.
v) The DC power supply system is installed as an emergency power supply until the EDG starts up, and DC
(direct current) power is supplied to the DC auxiliary equipment and the UPS.
The plant control device is supplied with power from both the AC power supply and the DC power
supply.
vi) The EDG is installed in order to stop the power plant safely at the time of unit auxiliary power loss.
However, the EDG for black start is installed separately from the EDG for safety stop of the power plant
because it is necessary to start-up the power plant without receiving power supply from the grid when
the grid goes into blackout.
An example of a single line diagram is shown in Figure 5-9.
Figure 5-9 Example of H-100 Single Line Diagram
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IX) Protection of Generators and Transformers
Protection devices are installed for protection of generators and transformers and for prevention disaster.
Generally, duplicated digital protection devices are installed, and power supply to these protection devices is
duplicated.
Table 5-13 show the basic configuration of protection relays.
Table 5-13 Generator Protection Relay
Item Element
Generator differential protection G87
Generator over voltage protection against ground fault G64
Generator negative sequence over current protection G46
Generator excitation fault protection (loss of field) G40
Generator over voltage protection G59
Generator field over excitation protection G53
Generator over current protection G51
Exciter ground fault protection E64
Generator directional over current relay G67
Generator voltage balance relay G60

Table 5-14 Generator Step-up Transformer Protection Relay
Item Element
Generator step-up transformer differential protection M87
Generator step-up transformer over voltage protection against ground fault M64
Generator step-up transformer over current protection against ground fault M51N
Table 5-15 Unit Auxiliary Transformer Protection Relay
Item Element
Unit auxiliary transformer differential protection H87
Unit auxiliary over current protection H51
Unit auxiliary transformer over current protection against ground fault H51N
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X) Closed Circuit Television (CCTV) System
CCTV system shall have the functions of automatic patrol, manual operation, zooming, record. CCTV system
shall be installed to strengthen security within the power plant premises.
e) Control System of the Power Plant
I) Basic Design of the System
DCS (Distributed Control System) is used for Control System of the Power Plant.
The DCS is a system that realizes control of the entire plant by distributing some of controllers and integrating
them, and is composed of man-machine interface units, control units, input / output units, network units,
power supply units, detection units, driving units and etc.
II) Automation of the Power Plant
The purpose of plant automation is to save and rationalize the normal operation and start-up and shut down
operation, to ensure safety, reliability and flexibility of operation, to operate with high efficiency. In order to
realize these goals, the automation system is designed so that operators can conduct the start-up and shut
down operation, normal operation and special operation in the central control room.
In order to prevent from a failure affecting the entire plant, the automation system is hierarchizing and
decentralizing. Specifically, the system is hierarchized into block control that controls and monitors the entire
plant and unit control and drive control. An example of the functional hierarchy of the automation system is
shown in Figure 5-16.
At the unit control and drive control, in order to prevent from some faults affecting to the entire unit, control
devices are distributed and independent. Each control function is distributed to gas turbine control, heat
recovery steam generator control, steam turbine control and etc. Moreover, owing to the distribution of the
control device, the maintenance of the device can be performed without affecting the operation of the unit as
much as possible.
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Figure 5-10 Example of the Functional Hierarchy of the Automation System
Functional Hierarchy
Operator access
Block Coordinator
Block Control
GT2 /HRSG1 Steam Turbine

Unit Controls
GT1/HRSG1
Group Controls
Sub-group Controls
Single drive Controls Drive Control Level

Close Loop Controls
Protections
MCC
Process M
M X X X
• Block Control
This hierarchy is the highest hierarchy in the functional hierarchy, and it is possible to start-up and shut
down the plant automatically, maintain the cooperation of the gas turbine, heat recovery steam generator
and steam turbine during normal operation and control the load.
• Unit Controls
In this hierarchy, it is possible to control the main unit of the block (such as gas turbine, heat recovery
steam generator, steam turbine) to a preset state.
• Group Controls
In this hierarchy, the related sub-group controls and drive control level are integrated and controlled by
specific processing such as supplying water to the boiler by driving the feedwater pump.
• Sub-group Controls
In this hierarchy, single drive controls can be combined with a series of controls by automatic sequence
execution or specific processing. The operator can start and stop all devices associated with the sub-group
controls through sub-group controls or group controls.
• Drive Control Level
In this hierarchy, control of individual devices is possible. Individual devices can be controlled either by
a higher level sub-group control or manual operation by the operator. In consideration of safety, manual
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operation at the drive control level is prioritized and control by other automation hierarchies cannot be
performed.
f) Fuel Gas Supply System

I) Positional Relation with Terminal Point
An existing gas pipeline is laid in the northeast of the Deva CFPP as shown in Figure 5-11. Gas is already
used in existing CFPP. It is possible to supply fuel gas to each candidate location of CCPP to be newly
constructed, by branching from the existing terminal point of gas and installing new gas pipeline to CCPP
to be newly constructed.
Figure 5-11 Positional Relation with Terminal Point of Gas and Candidate Locations of CCPP
II) Characteristics of Fuel Gas at the Terminal Point
Tables 5-16 and 5-17 show the confirmed gas composition, pressure and calorific value.
As mentioned in Chapter 5 (1) 1) b), 10.5 bar of the fuel supply pressure is low against the required fuel
gas pressure of GT, so it is necessary to newly install fuel gas compressor. (The required fuel gas pressure
of GT varies depending on the model of GT, but it is approximately 40 bar at the maximum case)
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Table 5-16 Gas Composition at the Terminal Point
Component Unit Percentage
Metan vol. % 98.9594
Etan vol. % 0.3788
Propan vol. % 0.1052
iso-Butan vol. % 0.0173
n-Butan vol. % 0.0146
iso-Pentan vol. % 0.0041
n-Pentan vol. % 0.0024
Azor vol. % 0.4031
Carbon dioxide vol. % 0.1143
Total vol. % 100.00

Table 5-17 Characteristics of Fuel Gas at the Terminal Point

Item Unit Value
Pressure bar 10.5
LHV kJ/kg 49,509

g) Common Equipment
I) Air Compressor System
Compressed air can be divided into control air and general service air depending on the application. The
control air is supplied as a drive source for various pneumatically operated pneumatic controllers, piston
valves, regulating valves etc. In order to ensure the reliability of operation of these devices, compressor for
control air is oil free and plans to comply with standards such as ISO. The general service air is used for
each equipment seal air, work etc. The conceptual system diagram is shown Figure 5-12.
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Figure 5-12 The Conceptual System Diagram
Conceptual system diagram

: Control air system
Control valve,
Piston valve
Control pneumatic
Compressor controllers
Air dryer
Dust filter
Control air load
Conceptual system diagram

: General service air system
General
Compressor service air
for general
General
service
Seal air for

Compressor each facility
for general
General service air load
II) Fire Fighting System
In order to protect employees and equipment in the plant from fire, fire protection shall be considered, such
as securing separation distance between equipment, adopting fire-retardant or fireproof equipment, selecting
appropriate firefighting system. Unless otherwise specified in Romania laws, NFPA 850 shall be applied as
the standard for fire protection for the plant.
Fire area boundaries should be based in consideration of the following.

Types, quantity, density, and locations of combustible material
Location and configuration of plant equipment
Consequence of losing plant equipment
Location of fire detection and suppression system
Fire barriers for separating fire areas should be of a minimum 2 hour resistance rating.
Water supply for the permanent fire protection installation should be able to provide water for 2 hours, and
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the hose stream demand should not be less than 1890 L/min. In case multiple fire pumps are required, the
pumps should not be subject to common failure, and should be of sufficient capacity excluding the capacity
of the largest pump.
The general combination of equipment and firefighting system is shown in Table 5-18.
Table 5-18 General Combination of Equipment and Fire Fighting System

Item Equipment Firefighting System
1 Bearing for GT, ST and Generator Carbon Dioxide Extinguisher
2 GT and ST Oil Tank Carbon Dioxide Extinguisher
3 Generator Exciter room Carbon Dioxide Extinguisher
4 Step up Transformer Water Spray System
5 Office Building Hydrant and Portable Extinguisher
6 Workshop and Storage Hydrant and Portable Extinguisher
7 Cable Room Carbon Dioxide Extinguisher or Water Splay System
8 Yard Area Hydrant
As the candidate sites are all around the existing CFPP equipment, with regard to the water fire extinguishing
equipment, by conducting extension of the fire water piping as necessary, it is assumed that fire water pumps,
fire extinguishing water storage tanks etc. can be reused. However, since the candidate site has not been
confirmed, it is recommend that detailed examination based on the laws of Romania, NFPA etc is conducted
during detailed designing stage.
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(2) Alternative Plan
As an alternative plan of CCPP, the study team considered gas engines using natural gas as fuel, which can be
expected to provide stable supply in the future from the viewpoint of fuel supply, and conduct studies.
1) Characteristics of Gas Engine
The gas engine is a reciprocating engine that uses natural gas as fuel, converts the energy obtained by
combustion into rotational motion, and rotates the generator to generate electricity. The main appearance is
shown in Figure 5-13, and the explanatory diagram of reciprocation is shown in Figure 5-14.
Compared to gas turbine simple cycle power generation, gas engine power generation has a high efficiency
characteristic, but thermal efficiency is lower when compared with CCPP.
Figure 5-13 Appearance of Typical Gas Engine
(Source: Wärtsilä HP https://www.wartsila.com/products/marine-oil-gas/engines-generating-sets)
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Figure 5-14 Reciprocating Motion of Gas Engine
(Source: Cogeneration Foundation HP https://www.ace.or.jp/web/chp/chp_0025.html )
2) Comparison of Gas Engine Power Plant (GEPP) and CCPP
Table 5-19 below shows the comparison result of typical GEPP and CCPP specifications.
Table 5-19 Comparison of Typical GEPP and CCPP Specifications

Item GEPP CCPP
Basic specification of Configuration 19 units 2on1 × 1 block
power generation Net Power Output 341,550 kW 338,354kW
equipment Net Thermal 45.63 % 56.03 %
Efficiency
EPC Cost 224,000,000 EUR 232,000,000 EUR
Propriety of District heat supply Possible Possible
Operability Start-up time 10 min 50 min
(Ancillary) Frequency 100 %/min 8.3 %/min(GT)
adjustment
Ramp rate 100 %/min
Minimum load 20 % 28 %
Environmental Aspect NOx emission rate 50 mg/Nm3 30 mg/Nm3
Construction Period 32 months 36 months
Required site area Approx. 2.6 ha Approx. 1.3 ha
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Table 5-20 Comparison of Typical GEPP and CCPP Arrangements (reference)
GEPP: Approx. 2.6 ha CCPP: Approx. 1.3 ha
a) Basic Specification of Power Plant Equipment
When comparing with the power plant equipment of same power output class, CCPP has higher thermal
efficiency than gas engine and has merit at running cost.
b) Construction cost
When comparing with the power plant equipment of same power output class, the construction cost is
comparable. On the other hand, GEPP : CCPP = 625: 639 euro / kW when compared with the construction
cost per output, the gas engine is cheaper than the CCPP, and the initial cost of only the construction cost
has merit.
c) District Heat Supply
District heat supply can be supplied by both GEPP and CCPP, but in the case of GEPP, installing HRSG
only for district heat supply is economically small merit, so separately, installing a hot water boiler is
considered preferable.
The district heat supply to be considered in this project is a very small amount of heat relative to the power
plant capacity, and the influence on the performance of CCPP is negligible. For this reason, efficiency
improvement by district heat supply is considered equivalent in CCPP and GEPP.
d) Ancillary
Regarding start-up time, frequency adjustment, and rump rate, although GEPP is superior to CCPP in
general, CCPP is generally superior to CFPP. Therefore, by repowering from the existing CFPP, the
ancillary performance is improved.
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e) Environmental Aspect
Comparing the NOx values, the NOx value per exhaust gas flow rate is lower in the CCPP than in the
GEPP, and there is a merit in the CCPP from the viewpoint of reducing the environmental load.
f) Required Site Area
When comparing with the power plant equipment of same power output class, as also shown in Table
5-20 the site area of CCPP is about half of that of GEPP, and CCPP is not subject to site restrictions.
In fact CCPP can be placed in Case 3, which is the replacement candidate site that was rated as having
the greatest economic merit in Chapter 4, but the GEPP can be placed only in Case 2. As a result of this,
the difference in the initial cost where the GEPP dominated by construction costs will be small.
Based on the above, the study team think that repowering to the CCPP will be desirable for the Deva CFPP.
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Chapter 6 Project Implementation and
O&M Organization
(1) O&M Organization
1) Recommended O&M Organization of CCPP
Since this project is the repowering of existing power plant equipment, it is necessary to construct O&M
organization in cooperation with existing CFPP organization. It is assumed that the operation of the power plant
will be done by the personnel of the Deva CFPP (hereinafter referred to as the Deva personnel) This CFPP has
already operated for over many years, and also from the field results of the study team, we think that Deva
personnel possess the O&M skills related to ST and BOP. However, since the project implementation body has
not yet been decided at this time, we will consider the maintenance organization that is generally required for
CCPP operation without considering the current organization.
a) Matters to consider in building the O&M Organization of CCPP

In CCPP operation, the most important factors are stable power supply and reduction of LCC. In addition,
it is important to adequately manage the factors shown in Figure 6-1.
For these factors, it is important to build an optimal CCPP O&M organization from the planning and
construction stages and make smooth transition to operation. In establishing the optimum CCPP O&M
organization, it is important to secure personnel necessary for CCPP stable operation and establish effective
GT maintenance method. As a result, it is possible to maintain stable supply of high-quality power
infrastructure and reduce LCC.
In particular, response to initial troubles and maintenance of hot parts for a long time are factors that greatly
influence the plant operations, and it is essential to consider the construction of the organization.
Figure 6-1 An important factor in CCPP operation
Stable supply Reduction of fuel cost by high efficiency operation

Prevention of unplanned outage due to unexpected
trouble
(Especially prevention of long-term plant outage such as
hot parts trouble)
Improve availability by prompt recovery
Reduction of Improvement
LCC of availability Management and shortening of inspection period
b) Study of Organization based on CCPP O&M in Other Countries

We studied the structure of the organization (operating personnel and maintenance personnel) necessary for
CCPP operation. When studying the system, we studied the system considering the difference of GT
maintenance method (LTSA, Long Term Parts Management (LTPM) adoption / non-adoption) based on other
CCPP results. Table 6-1 shows the operation and maintenance organization in overseas CCPP investigated by
the study team.
6-1
Table 6-1 CCPP O&M Organization of Other Projects
I) Case1 LTSA adoption

By adopting LTSA, GT manufacturers will securely maintain the most heated components, which is
deemed the most important scope of LTSA. GT manufacturers will procure and repair components and
will periodically inspect the most important heated components of GT. With secure management of GT
components, trouble would minimize and unexpected troubles can be treated at early stage. Therefore,
CCPP operation would be possible with minimum operator. Furthermore, maintenance cost can be leveled,
and reduction of LCC and optimum plant management are possible.
II) Case2 LTPM adoption
By adopting LTPM, stable supply and repair of heated components are carried out by GT manufacturers,
and it is possible to prevent outage of long-term operation. Therefore, CCPP operation can be handled
with minimum necessary operator. However, planning and management of troubleshooting at the early
stage of operation, and repairing of components at regular frequency are necessary, thus extra O&M
personnel is necessary for this purpose. Also, management of maintenance costs accompanying initial
troubles, and replacement of heated components becomes complicated.
6-2
c) Recommended O&M Organization
Although the project implementation body is undecided at present, it is highly likely that the personnel of
the Deva CFPP will be in charge of the O&M. For the staff of the Deva CFPP, it will be the first time to
operate CCPP. Based on this point and the features of each operation and maintenance organization shown in
the section b), Case 1, which enables reliable management of GT components and troubleshooting even if the
organization includes personnel with little GT knowledge, is recommended.
Based on Case 1, taking into consideration the fact that it is the first CCPP operation for the personnel of the
Deva CFPP, we will aim to plan staff training by making the correction shown in table 6-2.
Table 6-2 Correction Considering the first CCPP Operation

Department Correction contents
Operation The minimum necessary personnel is 2 people / group.
However, at initial stage, we recommend 4 people / group to increase the number
of educated personnel of plant management and driving training.
Maintenance 3 people are recommended for the purpose of managing and repairing. By
making full use of LTSA to secure important GT components, additional trainee
will be responsible for replacement plan, periodic inspection work management,
unexpected troubleshooting.
Considering the above, table 6-3 shows the recommended O&M organization in the Deva CFPP which
operates CCPP for the first time.
Considering that operators have no experience in CCPP O&M, and to secure important factors in CCPP
operation, namely stable supply and LCC reduction, we recommend to adopt LTSA until the first major
inspection. We also recommend to keep the stable operation of CCPP after you ensure that you took all possible
measures to maintain GT (such as heated components management).
By adopting LTSA, initial trouble can be minimized and CCPP can be operated. Regarding maintenance
personnel, through utilization of LTSA, it is possible to acquire maintenance skills of GT manufacturers, and
it is profitable from the viewpoint of systematic personnel training. From the above, we recommend that LTSA
be adopted for CCPP operation and GT maintenance, and we recommend establishing a system for CCPP
operation within the organization of Deva CFPP. In addition, since the maintenance organization (including
the maintenance and management method) affects LCC, it is indispensable to consider the maintenance
organization at an early stage (plant planning, construction stage).
6-3
Table 6-3 Recommended CCPP O&M Organization Required for CCPP Operations
(2) Recommended O&M System

1) Operation of an Ideal Thermal Power Plant
In order to contribute to the sustainable development of thermal power plants, it is important for thermal power
plants to maintain and enhance "the quality of power infrastructure" throughout their lifecycle.
The quality of power infrastructure is said to be 3E + S (stable supply, improvement of economic efficiency,
environmental conservation · harmony + safety). In addition, the stable power supply includes elements of initial
performance, availability and restoration capability.
In order to maintain and enhance the quality of this power infrastructure, the following capabilities are needed.
I) Construction of management system
Construction of Quality management system Quality Management System : QMS
Construction of key performance indicators Key Performance Indicator : KPI
II) Securing human resources
Operating capacity of operation and maintenance system
Technical capabilities of operation and maintenance
It is important to build these capabilities from the planning and construction stage of the thermal power plant.
6-4
And then, through appropriate quality control and construction of operation and maintenance system, ideal
thermal power plant operation can be realized, which will ensure supply capacity and reduce LCC.
2) Current Status of Deva CFPP

Over the years of operation, existing personnel’s O&M skills of CFPP is by no means inferior to that of Japan.
In addition, existing Deva personnel is well skilled in maintenance and technical aspects of ST and BOP.
Know-how to operate and manage the power plant is also established.
However, since CFPP will be repowered to CCPP, the existing Deva personnel faces new and inexperienced
challenge to operate CCPP. Since CCPP has never been introduced to Deva power plant, personnel’s skills
related to CCPP operation and GT maintenance is insufficient.
Due to differences in equipment, there are differences in efficient operation, plant monitoring, and operation
data management, which greatly affects device trouble signs, troubleshooting measures and fuel costs.
In GT maintenance, operation of heated components is important. The lifetime of heated components is
determined, and therefore regular replacement is necessary. In addition, confirming the soundness of the
components and repairing them requires long period of time.
Therefore, for the purpose of shortening the periodic inspection process, at the time of periodic inspection,
operation of replacing the disassembled hot parts with spare and restoring the hot parts is attempted.
In maintaining GT, it is important to maintain hot parts in a proper manner. To put it concretely, timing of
both repair completion and periodic inspection, and the remaining service life etc. of the hot parts needs to be
well managed, otherwise failure in maintenance will bring about major impact on plant operations.
It is necessary to improve CCPP operation and maintenance skills as mentioned above at an early stage and
to construct an optimum operation and maintenance system at the initial CCPP operation stage. In addition, it
is necessary to establish a KPI to manage fuel cost, availability factor and repair cost (heated components)
which most affects operation of the inexperienced CCPP. Establishing targets and understanding on how to
improve the current performance is necessary.
3) Construction of Recommended O&M System

Considering the current state of the Deva CFPP and the first CCPP adoption, we recommend the following
system construction in order to realize stable and efficient operation over a long period.
I) Construction of QMS and KPI
Construction of Quality management system
Establishment of CCPP performance indicators, performance management and improvement process
establishment
II) Construction of CCPP Operation and GT Maintenance Technology
(CCPP operation)
Learn about plant trends and trouble correspondence for load operation from CCPP start
/ stop operation
Initial trouble avoidance, abnormality detection for early response, factor analysis
(Utilization of remote monitoring system, etc.)
(GT maintenance)
6-5
Establishment of maintenance standards
Establishment of GT maintenance plan and establishment of spare parts management
Maintain effective CCPP utilizing LTSA
(3) Support for building O&M Systems

Technical acquisition through construction and trial operation is also effective for building the O&M system
described in the previous 3). However, even after the power plant starts its commercial operation, it is not enough
for personnel to continuously acquire skills.
In addition to LTSA and remote monitoring support by GT manufacturers, it is good to seek capacity building
support by power generation company who has rich experience in long-term O&M of CCPP. It is effective to
establish CCPP operation and maintenance system at an early stage and establish technological base.
Based on the above, the items that Japanese power generation companies can support in establishing the system
described in the previous 3) are as below.
1) GT Training
As a way to master the operation and maintenance skills of CCPP, a guidance program using user manuals
provided by GT manufacturers during construction is helpful.
Based on the user manuals’ information, improving personnel’s technological skills through On-the-Job
Training (OJT) is productive, but not enough for continuous skill development. To supplement On-the-Job
Training, seeking training support provided by power generation company with rich experience and know-
how of CCPP is helpful. By effectively taking advantage of this training support, we recommend to secure
stable supply of CCPP operation by quick capacity building and continuous technical skill improvement.
2) LTSA Support by GT manufacturer and Construction of CCPP Remote Monitoring System

Since introducing GT equipment is for the first time at Deva CFPP, it is important to suppress troubles at the
time of introducing the initial equipment and ensure that long-term and efficient stable operation of CCPP is
available. In order to realize these, it is important to implement plant management, operation data
management, trouble detection correspondence, and appropriate maintenance (maintaining and maintenance
of components that take time to recover when GT heated components troubles).
Supporting program’s contents for efficient and long- period stable operation include the following.
GT manufacturer’s support through LTSA
Support for installation of remote monitoring system
3) Support for Quality Control of Power Plant and KPI System Establishment
Unlike CFPP, CCPP has a characteristic that maintaining cost of GT heated components occupy big portion
of total maintenance cost. Therefore, CCPP’s asset management standards are different from that of CFPP.
The influence of fuel cost against maintenance cost is also big, therefore management of highly efficient
operation is also important.
6-6
In order to maintain ongoing business performance, sustainable management skills are necessary. By
establishing the structure of quality control and visualizing KPI all personnel will be able to grasp the
performance and effort to achieve the same goal.
Such an asset management system has been introduced in another CCPP in Romania and is a very important
mechanism from the viewpoint of CCPP operation. As the Japanese power generation company, it has built
an asset management system based on many years of CCPP operation, and our system will support quality
management and introduction of KPI.
(4) Possibility of Japanese Companies to participate in O&M

As mentioned in the previous section (2) 2), the staff of the Deva CFPP already has sufficient maintenance
and technological skills of ST and BOP, therefore further support is unnecessary.
Meanwhile, since the personnel of the Deva CFPP will operate and maintain GT for the first time, the support
mentioned in the previous section (3) can be highly considered.
Japanese GT manufacturers that provide main machines, and Japanese power generation companies with rich
long-term CCPP operation experience can support activities mentioned in the previous section (3).
6-7
Chapter 7 Project Plan
(1) Project Implementation Program
1) Contract with EPC Contractor
This project is a CCPP construction project that will be constructed inside the Deva CFPP, which the existing
equipment will be reused to the CCPP. Because the construction of the CFPP and the reuse takes place at the same
time, coordination adjustment will be complicated. Therefore, we recommend a full-turnkey EPC contract.
In contract, one year is to be expected as a necessary period for the contract with EPC Contractor taking into
consideration the specification of the contractor's offer etc.
2) Construction Phase
Before the contractor(s) begin constructing CCPP, the following preparation works needs to be completed.
Purchasing of land owned by another owner
Leveling of the above land
Preparation of access road necessary for construction work
The construction period is expected to be 36 months considering the environment, transportation, reuse of existing
equipment, and the CCPP construction record in Romania.
Since the exhaust gas bypass system is not adopted to this project, there is no early commercial operation by power
plant’s partially generating electricity by GT.
(2) Project Schedule

The proposed project schedule is shown in Table 7-1. The prerequisite of this schedule is that the project
implementing entity has been decided in advance. Therefore, the construction commencement may be delayed if
the selection of project implementing entity takes time. The environmental impact assessment (EIA) will delay
accordingly, since EIA will be given by the implementing entity.
1) Feasibility Study
Through this project feasibility study, we conducted information investigation which is necessary for optimizing
plant performance, economic evaluation and EIA.
2) Romanian Domestic Approval
Approval by Romanian Government is necessary to promote this project. The Romanian Department of Energy's
dominant body will give approval. If the Department takes time in selecting the implementing company, there is a
possibility of delay in the project schedule.
7-1
3) EIA
As for the financial arrangement, this project is considering to request Japan Bank for International Cooperation
(JBIC) buyer's credit. JBIC established environmental and social consideration guidelines to apply to the loan
requests. It is necessary to make an impact assessment in compliance with JBIC’s guidelines and Romanian
national law. The implementation period is assumed to be at least 1 year. The EIA shall be given by the project
implementation body.
It is also important from the viewpoint of profitability to implement EIA in an urgent manner.
In addition, since the Romanian authorities concerned are also hoping for early implementation, EIA is planned to
be implemented in parallel with Romanian domestic approval.
4) Contract
After concluding the loan agreement, EPC contractor will be selected through international competitive bidding.
5) From EPC Commencement to Commercial Operation
The construction period of CCPP usually depends on the delivery of HRSG. Based on recent records, it is
assumed that the CCPP construction will take 3 years.
7-2
Chapter 8 Economic and Financial Analysis
(1) Project Cost Estimation
1) Construction Cost
Construction cost is estimated by using GTPRO, Gas Turbine world magazine and the construction experiences of
the study team. The estimation result for the CCPP to be newly constructed is shown in Table 8-1. GTPRO is a
software for simulating performance and heat balance based on the latest database of the equipment used worldwide,
and also has a function to estimate the construction cost. It has been continuously updated, since it was released in
1988. Gas Turbine world is a specialized magazine that provides up-to-date information of international equipment
performance and price trends. It is used for reference in gas turbine power plant development, planning, evaluation,
procurement, construction, operation and maintenance. It has been continuously updated, since it was published in
1970.
In this study, the construction cost is estimated based on Case3 as mentioned in chapter 4(1)1), where the candidate
land for CCPP to be newly constructed is adjacent to Unit 6 of the existing power plant. This project can reduce the
construction cost by reusing the equipment of the Deva CFPP, as mentioned in chapter 3(1)8)c). In this estimation,
this cost is -31,900,000 EUR. The cost is shown in Table 8-1, which is estimated based on reusing some equipment
of Deva CFPP.
Table 8-1 Estimation of the CCPP to be newly constructed

CCPP to be newly constructed : 350MW class**
Item Total Cost Breakdown
Foreign Local
a) Construction Cost JPY EUR Currency Currency
EUR EUR
Power generation equipment/ 14,938,968,086 116,292,761 116,292,761 0
District Heat supply equipment
Erection 3,457,862,744 26,917,817 6,521,481 20,396,336
Civil/Buildings 3,156,998,856 24,575,735 0 24,575,735
Engineering 1,532,311,805 11,928,319 11,928,319 0
Admin Cost 6,798,148,673 52,920,354 52,920,354 0
Subtotal 29,884,290,164 232,634,985 187,662,915 44,972,070
b) Reserve Cost * 3,509,786,056 27,322,015 22,040,231 5,281,783
Total 33,394,076,220 259,957,000 209,703,146 50,253,854
*Reserve cost is 11.7% of construction cost. This includes consulting cost, various procedures cost, land acquisition cost
and finance costs, etc.
** These costs are rounded to integers.
Source: prepared by the study team
8-1
2) O&M Cost
The operation & maintenance cost is estimated based on the experiences of the study team. The calculated result is
shown in Table 8-2.
Table 8-2 Annual O&M Cost
Annual Operation & Maintenance Cost
JPY EUR
a) Operation & Maintenance Cost 720,000,000 5,600,000
b) LTSA 550,000,000 4,400,000
Total 1,270,000,000 10,000,000
8-2
(2) Preliminary Financial and Economic Analysis
1) Methodology of Economic and Financial Analysis
The objectives of economic and financial analysis are to evaluate the Project’s economic and financial viability by
means of indices such as internal rate of returns (IRR) and net present values (NPV) which is calculated using the
discounted cash flow calculation method, and to test variability of indices under adverse or vantage conditions.
In this report, Financial Internal Rate of Return (FIRR) is calculated as an investment evaluation for this project and
Equity Internal Rate of Return (EIRR) is calculated as an investment evaluation for equity capital. The feasibility
of this project is evaluated from these results.
2) Scenarios
General settings of economic and financial analysis are explained here. In this report, economic and financial
analysis based on the two scenarios, as shown in table 8-3, will be carried out. Scenario 1 is defined based on
“Energy Strategy to 2030 with a 2050 Prospective”, which was published from Ministry of Energy on 19th
September 2018. Scenario 2 is defined based on the considering the current business situation, which Cernavoda
NPP units 3 and 4 are not developed but the existent units are maintained. This is a different scenario from Energy
Strategy, but take into consideration the European tendency of removing nuclear which have become significant in
the last decade. In such case, it will have a hard time to develop Cernavoda NPP units 3 and 4.
Table 8-3 Outline of Each Scenario

Scenario Outline
Based on Energy Strategy Units 1 and 2 are lifetime extension.
Units3 and 4 are commissioned in 2026 and 2036 (~2×700 MW).
b) Tarnita Lapnstesti pumped storage Hydro Power Plant (PSHPP)
PSHPP is commissioned in 2028. (1000MW)
Considering the Current Situation Units 1 and 2 are lifetime extension.
b) Tarnita Lapnstesti PSHPP
PSHPP are commissioned in 2028. (1000MW)
As shown in figure 8-1 and figure 8-2, differentiation between each scenario is reflected to ratio of the power
generation mix. This forecast of power generation mix is used the results of Romanian Electricity & Gas Market
Study of Tractebel Engie (Romania).
The ratio of renewable energy will be increased in both scenarios. In scenario 1, the ratio of nuclear increases in
8-3
2026 and 2036, accompanied by minor share of gas. On the other hand, in scenario 2, the demand is covered with
additional capacity, mainly gas. From the figures presented below, it can be observed that natural gas-based
electricity plays important role in the Romanian electricity market.
Figure 8-1 Power Generation Mix in Scenario1
105000
90000
Power Generation, GWh
75000
60000
45000
30000
15000
0
2019
2021
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
2045
2047
2049
Wind Photovoltaics (PV)
Nuclear Hydro RoR (Run-of-River)
hydro LC (Lake-Cascade) Cogen lignite
Cogen gas Cond lignite
Cond hardcoal Cond gas
(Source: prepared by the study team based on Tractebel Engie electricity & gas market study report)
Figure 8-2 Power Generation Mix in Scenario2
105000
90000
Power Generation, GWh
75000
60000
45000
30000
15000
0
2019
2021
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
2045
2047
2049
Wind Photovoltaics (PV)

Nuclear Hydro RoR (Run-of-River)
hydro LC (Lake-Cascade) Cogen lignite
Cogen gas Cond lignite
8-4
3) Assumptions
The long-term forecast of CO2 price, wholesale gas, electricity and ancillary services prices are cited from the study
by Tractebel Engie.
a) Price Outlook
In Romania, align to the harmonized Continental European markets, CO2 price, natural gas price
will increase, accordingly the electricity price will increase.
I) CO2 Price
CO2 prices forecast is shown in figure 8-3. This shows that CO2 prices will continuously increase until 2040 in order
to align the EU-wide 2030- emissions target — and hence the EU-ETS cap — with the Paris Agreement.
Figure 8-3 Long-term Forecast of CO2 Price (Both Scenarios)
80
70
60
EUR/ton CO2
50
40
30
20
10
0
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
II) Gas Price

Gas price forecast is shown in figure 8-4. This shows that gas prices will be continuously increase in
order to align to the harmonized Continental European markets.
Figure 8-4 Long-term Forecast of Gas Price (Both Scenarios)
35
30
25
EUR/MWh
20
15
10
0
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
8-5
III) Electricity Price
Electricity prices forecasts are shown in Figure 8-5 and Figure 8-6. Electricity price in Romania which is one of
the cheapest in Europe, will also show rise, and align to the harmonized Continental European markets. It can be
seen that the spot price will skyrocket from 2024 due to the increase of renewable and decrease of lignite.
The CCPP to be newly constructed will provide electricity mainly through the spot market, since bids from Hydro
and Nuclear dominate the forward market. The electricity selling prices in scenario 1 are lower than scenario 2,
because the cheap nuclear is injected in large volume in scenario1.
In the following figures, Frequency Containment Reserve (FCR), Automatic Frequency Restoration Reserve
(aFRR) and Manual Frequency Restoration Reserve (mFRR) indicate transactions in the ancillary services market.
These refer to capacity reservation over a predefined period. FCR is included in this analysis. At present, Romania
lacks a market for FCR, but the ancillary services structure in compliance with European regulation will start its
operation in 2021.
8-6
Figure 8-5 Long-term Forecast of Electricity Prices (Scenario1)
140
EE spot price
120
avg EE price CCPP
avg EE price ref
100
EE forward price
FCR
EUR/MWh
80
aFRR
60 mFRR
40
20
0
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
Table 8-6 Long-term Forecast of Electricity Prices (Scenario2)
140
120 EE spot price

avg EE price CCPP
100 avg EE price ref
EE forward price
FCR
EUR/MWh
80
aFRR
60 mFRR
40
20
0
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
8-7
b) Primary Assumptions
The main assumptions are used in this analysis are shown in Table 8-4, Table 8-5 and Table 8-6.
Table 8-4 Summary of the Common Assumptions

Item Assumption*
Power Output Net 338,354 kW
Production Efficiency Net 56.03%
CO2 Emission Factor 0.344 ton CO2/MWh
District heating supply 111,000 Gcal/year
Project Period 3 years for construction,
20 years for commercial operation
Discount Rate 6%
Depreciation Period 20 years
Cost Construction Cost 259,957,000 EUR
Operation & 10,000,000 EUR (escalation rate of 1.5% per year
Maintenance Cost
Tax (for corporate) 16%
Fuel Cost 21.22 EUR/MWh average escalation rate of 2.11% per year
CO2 Price 37 EUR/ton average escalation rate of 4.60% per year
Income Heat Selling Price 34.2 EUR/Gcal average escalation rate of 2.11% per year
Cogeneration Bonus not considered
Transformation Rate 1 EUR=128.46 JPY
1 EUR=1.13 USD
1 EUR=4.65 RON
Financing Structure JBIC and Japanese private banks covered by Nippon Export and
Investment Insurance’s (NEXI) buyer’s credit insurance.
JBIC and Banks 85%
Owner 15%
Financing Conditions Interest 3% per year, Commitment fee: 0.5%
Repayment period 12 years
* Each price is based on the reference year 2024.
8-8
Table 8-5 Assumptions for Scenario 1
Item Assumption *
Capacity Factor 2024 - 2026 68.5 %
2027 - 2036 51.4 %
2037 - 2043 58.2 %
Selling electricity Forward 38.68 EUR/MWh(average escalation rate of 2.20% per year)
54.15 EURO/MWh.
Balancing Upload 16.84 EUR/MWh(average escalation rate of 4.1% per year)
market Dowonload 81.96 EUR/MWh average escalation rate of 2.03% per
year
Ancillary FCR 20.31 EUR/MWh average escalation rate of 2.18% per year
Services aFRR 18.48 EUR/MWh average escalation rate of 1.89% per year
market mFRR 10.68 EUR/MWh average escalation rate of 2.71% per year
Table 8-6 Assumption for scenario 2

Item Assumption *
Capacity factor 68.5 %
Income Electricity Whole sale Spot 54.46 EUR/Mwh (average escalation rate of 2.54% per year)
Selling electricity Forward 38.68EUR/MWh(average escalation rate of 2.42% per year)
54.15 EUR/MWh
Balancing Upload 16.63 EUR/MWh (average escalation rate of 4.2% per year)
market Download 80.94 EUR/MWh (average escalation rate of 2.13%
per year)
Ancillary FCR 20.12 (average escalation rate of 2.32% per year)
Services aFRR 18.30 EUR/MWh(average escalation rate of 1.94% per year)
market mFRR 10.59 EUR/MWh (average escalation rate of 2.75% per year)
4) The Results of Analysis
The results of economic and financial analysis based on the above assumptions are shown in Table 8-7 and Table 8-
8.
8-9
Table 8-7 Result of Economic and Financial Analysis (Scenario 1: based on Energy Strategy)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354
56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0
54.4 55.0 55.0 54.2 54.2 54.2 54.2 54.2 54.2 54.2 54.2 54.2 54.2 53.9 53.9 53.9 53.9 53.9 53.9 53.9
68.5 68.5 68.5 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 58.2 58.2 58.2 58.2 58.2 58.2 58.2
54.2 56.9 61.0 68.4 74.0 80.1 86.4 88.2 89.2 90.2 91.2 92.2 93.1 91.5 92.4 93.3 94.2 94.9 94.4 94.1
16.8 17.7 19.0 20.0 21.3 23.0 24.9 26.0 27.1 28.2 29.3 30.5 31.8 31.7 33.0 34.4 35.8 37.2 38.2 39.4
20.3 20.7 21.5 21.5 21.7 22.5 23.4 24.1 24.8 25.4 26.1 26.9 27.6 27.0 27.7 28.5 29.3 29.9 30.4 30.9
18.5 19.0 19.9 20.5 21.3 22.3 23.5 24.0 24.5 25.0 25.4 25.9 26.4 26.0 26.5 27.0 27.5 28.0 28.3 28.6
10.7 11.0 11.5 11.9 12.3 12.9 13.5 13.9 14.3 14.7 15.0 15.4 15.8 15.7 16.1 16.5 16.9 17.2 17.5 17.8
34.2 34.9 35.4 36.4 37.3 38.3 39.4 40.1 40.9 41.7 42.5 43.3 44.2 45.0 45.9 46.7 47.3 47.8 48.4 49.0
21.2 21.7 22.0 22.6 23.2 23.8 24.5 24.9 25.4 25.9 26.4 26.9 27.4 28.0 28.5 29.0 29.4 29.7 30.1 30.4
37 40 43 46 49 52 55 57 59 61 63 65 67 69 71 73 75 75 75 75
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
2,030,124 2,030,124 2,030,124 1,522,593 1,522,593 1,522,593 1,522,593 1,522,593 1,522,593 1,522,593 1,522,593 1,522,593 1,522,593 1,725,605 1,725,605 1,725,605 1,725,605 1,725,605 1,725,605 1,725,605
158,064 168,910 171,320 170,655 173,174 175,562 173,587 175,094 176,601 178,108 179,615 179,139 180,646 182,948 184,286 185,624 186,962 191,679 192,594 193,791
53,105 53,105 53,105 50,223 50,223 50,223 50,223 50,223 50,223 50,223 50,223 50,223 50,223 55,163 55,163 55,163 55,163 55,163 55,163 55,163
303,403 323,147 327,676 336,460 341,261 346,062 342,090 345,121 348,151 351,182 354,213 353,256 356,286 349,268 352,299 355,329 358,360 369,047 371,121 373,832
147,919 159,145 161,496 150,813 153,205 155,221 153,554 154,826 156,099 157,371 158,644 158,242 159,515 173,107 173,896 174,684 175,473 178,255 178,795 179,501
111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000
109.9 115.6 123.8 104.2 112.6 121.9 131.6 134.3 135.9 137.4 138.8 140.3 141.8 157.8 159.4 161.0 162.5 163.7 162.9 162.4
2.7 3.0 3.3 3.4 3.7 4.0 4.3 4.6 4.8 5.0 5.3 5.5 5.7 5.8 6.1 6.4 6.7 7.1 7.4 7.6
1.1 1.1 1.1 1.1 1.1 1.1 1.2 1.2 1.2 1.3 1.3 1.3 1.4 1.5 1.5 1.6 1.6 1.7 1.7 1.7
5.6 6.1 6.5 6.9 7.3 7.7 8.0 8.3 8.5 8.8 9.0 9.1 9.4 9.1 9.3 9.6 9.9 10.3 10.5 10.7
8-10
1.6 1.8 1.9 1.8 1.9 2.0 2.1 2.2 2.2 2.3 2.4 2.4 2.5 2.7 2.8 2.9 3.0 3.1 3.1 3.2
3.8 3.9 3.9 4.0 4.1 4.3 4.4 4.4 4.5 4.6 4.7 4.8 4.9 5.0 5.1 5.2 5.2 5.3 5.4 5.4
124.7 131.5 140.6 121.5 130.7 141.0 151.6 155.0 157.2 159.3 161.5 163.5 165.8 181.9 184.3 186.6 188.9 191.2 191.0 191.1
3,734,491 3,734,491 3,734,491 2,819,577 2,819,577 2,819,577 2,819,577 2,819,577 2,819,577 2,819,577 2,819,577 2,819,577 2,819,577 3,202,741 3,202,741 3,202,741 3,202,741 3,202,741 3,202,741 3,202,741
698,363 698,363 698,363 523,772 523,772 523,772 523,772 523,772 523,772 523,772 523,772 523,772 523,772 593,608 593,608 593,608 593,608 593,608 593,608 593,608
79.3 81.0 82.3 63.7 65.4 67.1 69.0 70.2 71.6 73.0 74.4 75.9 77.4 89.6 91.4 92.9 94.0 95.2 96.3 97.5
25.8 27.9 30.0 24.1 25.7 27.2 28.8 29.9 30.9 32.0 33.0 34.0 35.1 41.0 42.1 43.3 44.5 44.5 44.5 44.5
10.0 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 11.0 11.2 11.3 11.4 11.5 11.6 11.7 11.8 12.0 12.1
115.1 119.1 122.5 98.1 101.5 104.9 108.4 110.8 113.3 115.9 118.5 121.1 123.7 141.9 145.0 147.9 150.3 151.5 152.8 154.1
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6
-221 -2 1 6 12 18 25 32 33 32 32 31 31 30 28 28 27 27 28 26 25
0 0 1 2 3 4 5 5 5 5 5 5 5 5 4 4 4 4.5 4.2 4.0
18 18 18 18 18 18 18 18 18 18 18 18 0 0 0 0 0 0.0 0.0 0.0
7 6 6 5 4 4 3 3 2 2 1 1 0 0 0 0 0 0.0 0.0 0.0
-221 -203 -184 -166 -147 -129 -110 -92 -74 -55 -37 -18 0 0 0 0 0 0 0.0 0.0 0.0
-260 10 12 17 21 26 32 38 39 39 38 38 38 37 35 35 34 34 35.1 33.9 32.9
-38.99 -15.48 -12.23 -6.91 -1.94 3.57 9.95 16.41 17.80 18.06 18.29 18.50 18.54 37.17 35.44 34.84 34.41 34.31 35.14 33.89 32.89

Table 8-7 Result of Economic and Financial Analysis (Scenario 2: based on the Considering Current Business Situation) , Base Case
Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Net Power Output (MW) 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354 338.354
Net Thermal Efficiency (%) 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0
Total Efficiency (%) 54.4 55.0 55.0 54.2 54.2 54.2 54.2 54.2 54.2 54.2 54.2 54.2 54.2 53.9 53.9 53.9 53.9 53.9 53.9 53.9
Capacity Factor (%) 68.5 68.5 68.5 68.5 68.5 68.5 68.5 68.5 68.5 68.5 68.5 68.5 68.5 68.5 68.5 68.5 68.5 68.5 68.5 68.5
Wholesale Electricity Price (EUR/MWh) 54.2 56.9 61.0 66.4 71.8 77.8 84.0 85.8 86.9 87.9 89.0 90.0 91.0 92.1 92.9 93.9 94.9 95.5 95.0 94.8
Electricity Selling Price at Balancing Market (EUR/MWh) 16.6 17.5 18.8 20.4 21.7 23.4 25.4 26.6 27.7 28.8 29.9 31.2 32.4 33.8 34.9 36.3 37.8 39.0 39.9 41.1
FCR Price (EUR/MWh) 20.1 20.5 21.3 22.1 22.4 23.3 24.3 25.0 25.6 26.3 27.0 27.7 28.4 29.2 29.7 30.4 31.2 31.6 31.9 32.3
aFRR Price (EUR/MWh) 18.3 18.8 19.7 20.8 21.6 22.7 23.9 24.4 24.9 25.3 25.8 26.3 26.8 27.2 27.6 28.1 28.5 28.9 29.1 29.4
mFRR Price (EUR/MWh) 10.6 10.9 11.4 12.0 12.5 13.1 13.8 14.2 14.5 14.8 15.2 15.6 15.9 16.3 16.6 17.0 17.4 17.7 17.9 18.2
Heat Selling Price (EUR/MWh) 34.2 34.9 35.4 36.4 37.3 38.3 39.4 40.1 40.9 41.7 42.5 43.3 44.2 45.0 45.9 46.7 47.3 47.8 48.4 49.0
Fuel Price (EUR/Gcal) 21.2 21.7 22.0 22.6 23.2 23.8 24.5 24.9 25.4 25.9 26.4 26.9 27.4 28.0 28.5 29.0 29.4 29.7 30.1 30.4
CO2 Price (EUR/ton) 37 40 43 46 49 52 55 57 59 61 63 65 67 69 71 73 75 75 75 75
Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Annual Power Production (MWh/an) 2,030,124 2,030,124 2,030,124 2,030,124 2,030,124 2,030,124 2,030,124 2,030,124 2,030,124 2,030,124 2,030,124 2,030,124 2,030,124 2,030,124 2,030,124 2,030,124 2,030,124 2,030,124 2,030,124 2,030,124
Annual Power Production at Balancing Market (MWh/an) 158,064 168,910 171,320 168,679 171,123 173,242 171,489 172,827 174,164 175,502 176,840 176,417 177,755 174,657 175,995 177,333 178,670 183,388 184,303 185,500
Annual FCR Contract Capacity (MWh/an) 53,105 53,105 53,105 53,105 53,105 53,105 53,105 53,105 53,105 53,105 53,105 53,105 53,105 53,105 53,105 53,105 53,105 53,105 53,105 53,105
Annual aFRR Contract Capacity (MWh/an) 303,403 323,147 327,676 322,726 327,255 331,783 328,037 330,896 333,754 336,613 339,471 338,569 341,427 334,807 337,666 340,525 343,383 353,463 355,419 357,977
Annual mFRR Contract Capacity (MWh/an) 147,919 159,145 161,496 158,905 161,354 162,877 161,617 162,578 163,539 164,500 165,461 165,158 166,119 163,893 164,854 165,815 166,776 170,165 170,822 171,682
Annual Heat Production (Gcal/an) 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000 111,000
Incomes from Wholesale Electricity (mil.EUR/an) 109.9 115.6 123.8 134.8 145.8 157.9 170.6 174.3 176.4 178.5 180.6 182.7 184.8 186.9 188.6 190.6 192.7 193.8 192.9 192.4
Incomes from Electricity Selling at Balancing Market (mil.EUR/an) 2.6 3.0 3.2 3.4 3.7 4.1 4.4 4.6 4.8 5.1 5.3 5.5 5.8 5.9 6.1 6.4 6.7 7.1 7.4 7.6
Incomes from FCR (mil.EUR/an) 1.1 1.1 1.1 1.2 1.2 1.2 1.3 1.3 1.4 1.4 1.4 1.5 1.5 1.5 1.6 1.6 1.7 1.7 1.7 1.7
Incomes from aFRR (mil.EUR/an) 5.6 6.1 6.5 6.7 7.1 7.5 7.8 8.1 8.3 8.5 8.8 8.9 9.1 9.1 9.3 9.6 9.8 10.2 10.3 10.5
Incomes from mFRR (mil.EUR/an) 1.6 1.7 1.8 1.9 2.0 2.1 2.2 2.3 2.4 2.4 2.5 2.6 2.6 2.7 2.7 2.8 2.9 3.0 3.1 3.1
8-11
Incomes from heat sales (mil.EUR/an) 3.8 3.9 3.9 4.0 4.1 4.3 4.4 4.4 4.5 4.6 4.7 4.8 4.9 5.0 5.1 5.2 5.2 5.3 5.4 5.4
Total incomes 124.5 131.3 140.4 152.0 163.9 177.1 190.7 195.0 197.8 200.6 203.3 205.9 208.8 211.1 213.5 216.3 219.0 221.1 220.7 220.8
Annual Fuel Consumption (MWh/an) 3,734,491 3,734,491 3,734,491 3,734,491 3,734,491 3,734,491 3,734,491 3,734,491 3,734,491 3,734,491 3,734,491 3,734,491 3,734,491 3,734,491 3,734,491 3,734,491 3,734,491 3,734,491 3,734,491 3,734,491
Annual CO2 Emmisions (ton CO2/an) 698,363 698,363 698,363 698,363 698,363 698,363 698,363 698,363 698,363 698,363 698,363 698,363 698,363 698,363 698,363 698,363 698,363 698,363 698,363 698,363
Fuel cost (mil.EUR/an) 79.3 81.0 82.3 84.4 86.6 88.9 91.3 93.0 94.8 96.7 98.6 100.5 102.5 104.5 106.5 108.3 109.7 111.0 112.3 113.7
CO2 Emmisions Costs (mil.EUR/an) 25.8 27.9 30.0 32.1 34.2 36.3 38.4 39.8 41.2 42.6 44.0 45.4 46.8 48.2 49.6 51.0 52.4 52.4 52.4 52.4
Operation & Maintenance Cost (mil.EUR/an) 10.0 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 11.0 11.2 11.3 11.4 11.5 11.6 11.7 11.8 12.0 12.1
Total Costs (mil.EUR) 115.1 119.1 122.5 126.9 131.3 135.7 140.3 143.6 146.9 150.2 153.6 157.1 160.5 164.1 167.6 170.9 173.8 175.2 176.7 178.2
Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Depreciation Costs (mil.EUR/an) 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6
Pre tax Profit (mil.EUR/an) -221 -2 1 6 14 21 30 39 40 39 39 38 37 37 35 34 34 34 34 32 31
Tax (mil.EUR/an) 0 0 1 2 3 5 6 6 6 6 6 6 6 6 5.5 5.4 5.4 5.5 5.2 5.0
Principal Repayment (mil.EUR/an) 18 18 18 18 18 18 18 18 18 18 18 18 0 0 0.0 0.0 0.0 0.0 0.0 0.0
Interest Repayment (mil.EUR/an) 7 6 6 5 4 4 3 3 2 2 1 1 0 0 0.0 0.0 0.0 0.0 0.0 0.0
Balance of Principal (mil.EUR/an) -221 -203 -184 -166 -147 -129 -110 -92 -74 -55 -37 -18 0 0 0 0.0 0.0 0.0 0.0 0.0 0.0
Free Cach Flow (mil.EUR) -260 9 12 17 23 29 37 44 45 45 44 44 43 42 41 40.4 39.9 39.9 40.4 38.8 37.7
Net Profit (mil.EUR) -38.99 -15.59 -12.32 -7.04 -0.36 6.44 14.32 22.39 23.94 24.03 24.08 24.09 23.94 42.38 41.41 40.40 39.94 39.87 40.43 38.83 37.69
10.15% Co-gen Bonus No

17.27%
117.247 MEUR

a) FIRR
FIRR is calculated to evaluate the financial feasibility of this project. FIRR and NPV are shown in Table 8-9.
Table 8-9 FIRR and NPV for Each Scenario

Scenario FIRR NPV
Scenario 1 (Energy Strategy Base) 8.78 % 74 mil. EUR
Scenario 2 (Considering the Current Situation) 10.15 % 117 mil. EUR

b) EIRR
The equity IRR represents the return which attributes to projects’ equity holders. The results are indicated that this
project can bring sufficient level of economic return and is viable.
Table 8-10 EIRR for Each Scenario

Scenario EIRR
Scenario 1 (Energy Strategy Base) 14.57 %
Scenario 2 (Considering the Current Situation) 17.27 %
8-12
(3) Sensitivity Analysis
The sensitivity analysis is to assess impact against the FIRR/EIRR of the project when some selected items in the
assumption of this analysis are changed. In this report, 5 parameters plant factor, electricity selling price, fuel cost,
construction cost and CO2 price are selected for sensitivity analysis based on scenario 2 and the impact against
the FIRR/EIRR are assessed.
As shown in Table 8-11, electricity selling price and fuel cost are the top two parameters that give significant impact
against FIRR/EIRR. On the other hand, the change of plant factor has least impact among the 5 since CO2 price
costs and efficiency of partial load.
Table 8-11 Results of Sensitivity Analysis

Item Variance FIRR FIRR EIRR EIRR
(%) Difference from (%) Difference from
the Base Case the Base Case
(%) (%)
Base Case 10.15% 17.27%
Plant Factor 68.5% 78.5% 9.68% -0.47% 16.00% -1.27%
68.5% 58.5% 9.99% -0.16% 17.15% -0.12%
Electricity With Cogeneration 13.43% +3.28% 31.40% +14.13%
Selling Price Bonus*
+10% 14.82% +4.67% 29.66% +12.39%
-10% 4.35% -5.80% 5.41% -11.86%
Fuel cost +10% 6.91% -3.24% 10.22% -7.05%
-10% 13.02% +2.87% 24.80% +7.53%
Construction +10% 9.09% -1.06% 15.00% -2.27%
Cost -10% 11.36% +1.21% 19.95% +2.68%
CO2 Emission +10% 8.86% -1.29% 14.40% -2.87%
Cost -10% 11.35% +1.20% 20.14% +2.87%
*The cogeneration bonus is 10 EUR/MWh for 5 years from start of commercial operation.
8-13
(4) Conclusion
Based on the aforesaid Romania’s Energy Strategy and study by Tractebel Engie, in consideration of the current
business situation, the project in both scenarios shows high value in all measurement indicators including FIRR and
EIRR. This indicates that this project is financially and economically viable. These high IRRs arise from the future
structure that the CCPP to be newly constructed will play a main role in the electricity market as renewable energy
increases, and thus the project is able to make profit. Therefore, this project is important for the electricity market
in Romania.
However, in both scenarios, the revenue is low for the first 5 years since the start of commercial operation, and
during this period, it is hard to repay loans. This is because Gas and CO2 cost turns out to be a big burden to the
project and spoils its cash flow. In this regard, scheme to offset Gas and CO2 cost, such as cogeneration support, is
desired.
8-14
Chapter 9
Evaluation of Environmental and Social Impacts
(1) Environmental and Social Baseline Conditions
1) Overview
This project is related to the development of a new 350 MW CCPP in the existing site of Deva CFPP, in Hunedoara
County, Western Romania. Currently, in the existing site there are 6 coal-fired units but most of them have not operated
for a long time a do not meet the new EU air emission standards, and were decommissioned or are to be decommissioned.
Since Romania has joined the EU, stricter air emission limit values have been applied to the power plants, and the goal
of the operators in Romania today is to reach the air emissions concentrations that follow the standards after 2021. In
this sense, this project is indispensable to ensure that emissions from Deva power plants achieve full environmental
compliance while continuing electricity production.
This preliminary environmental and social impacts evaluation of the installation of a CCPP to be newly constructed will
be presented altogether with the full F/S.
2) Site Location
The project site is located in Western Romania, Hunedoara County, 10 km North-West from Deva city, and 2km West
from Mintia village, on the bank of the Mures River. The project site will use the land already used for the existing
CFPP belonging to Electrocentrale Deva.
The site is located along the E673 route and in the middle of an agricultural area. Land use in the vicinity of the projects
sites comprises:
w Agricultural land;
w Existing industrial area;
w Sparse residential developments;
w Existing roads;
For the environmental part of this report, it has been supposed in Chapter 4 that the new Power Plant will be installed
according to Case 3 as it is the most probable site to be used for this project. The geographical coordinates of the new
power plant for Case 3 is shown in Table 9-1.
The relative location of the power plant is shown in Figure 9-1, and its detailed satellite pictures are shown in Figure 9-
2.
Table 9-1 Site Location Coordinates (in Decimal Degrees)

Latitude Longitude
CCPP to be newly
constructed coordinates 45°54’47.54’’ 22°49’20.85’’
(Case 3)
(Source: prepared by the study team based on Google Maps)
9-1
Figure 9-1 Location of the Project Site
Mures River
Deva Power
Plant
Deva
1km
(Source: prepared by the study team based on Google Maps)
Figure 9-2 Detail of Deva CFPP
Mures River
100m
9-2
Figure 9-3 to 9-8 Views of the Existing Deva CFPP
Figure 9-3 View of the 235 MW (TA3) Turbine of the Figure 9-4 View of the Cooling Towers of the Existing
Existing Power Plant Power Plant
Figure 9-5 View of the Stacks of the Existing Power Figure 9-6 View of Case 3 for New Project Site
Plant (East-West View)
Figure 9-7 View of Case 3 project Site Figure 9-8 View of Case 3 for New Project Site
(South-North View) (East-West View)
(Source: Photo by the study team)
9-3
3) Environmental and Social Baseline Data
a) Meteorology
The meteorology data1 of the project site indicate a humid and cold winter (-2°C to 11°C) and a warm and humid
summer and fall through May to October (21°C to 28°C). Precipitation amount is steady throughout the year, with an
annual average rainfall of 600mm. The climate can be defined as moderate- humid continental.2
Average wind speed is mostly comprised between 1 and 5km/h; and tends to be 5 to 12km/h in March and April. The
wind rose shows a wind direction coming principally from the West and North West.
Average monthly temperatures, precipitation, wind speed and annual wind direction are shown in Figure 9-9 to Figure9-
11.
Figure 9-9 Precipitation and Temperatures in Deva (Monthly Data for Five-year Average)
(Source: HP https://www.meteoblue.com/en/weather/forecast/modelclimate/45.913N22.823E3)
1
The meteorology data were resourced from meteoblue climate diagrams based on 30 years of hourly weather
simulations. They give good indications of typical climate patterns and expected conditions. The simulated weather
data have a spatial resolution of approximately 30km and may not reproduce local weather effects such as local winds.
2
National Climate monitoring: Meteo Romania Administratia nationala de meteorologie
http://www.meteoromania.ro/anm2/clima/monitorizare-climatica/
3
The data is derived from NEMS (National Energy weather model at approximately 30km resolution and cannot
reproduce detail local weather effects, such as heat islands, cold air flows, thunderstorms or tornadoes.
9-4
Figure 9-10 Wind Speed Data in Deva (Monthly Data)
(Source: HP https://www.meteoblue.com/en/weather/forecast/modelclimate/deva_romania_679452)
Figure 9-11 Wind Direction
(Source: HP https://www.meteoblue.com/en/weather/forecast/modelclimate/deva_romania_679452)
b) Geography and Topography
Deva is a town situated on the left bank of the middle course of the Mures River, in the center of Hunedoara County.
The town is bordered by Poiana Ruscai Mountains and the Zarand Mountains in the west, with the Western Carpathians
(Apuseni Mountains) in the north, and the Uroiu Magura in the East. (Figure 9-12)
9-5
The project site altitude is 187 m above sea level, whereas the mountains surrounding the town are about 250-400 m
and highest one is 650 m. The area occupied by Deva city is 41 km2, and its population is estimated to be approximately
61,000 inhabitants according to a census conducted in 2011.
The project site is situated 7.5km North West of Deva (the direct distance), on the left bank of the Mures River. It is
located between two mountains, the Western Carpathians Mountains on the other side of the river in the north and the
Poiana Rusaai Mountains in the South and West.
Figure 9-12 Geography around the Project Site

Western
Carpathians
Project site
Mures River
Deva city Uroiu M gura
Poiana Rusc i
Mountains
Zarand Mountains
(Source: prepared by the study team based on Google Earth )
c) Main Habitats and Vegetation
There is no protected area within the project site. The nearest area considered as having a natural value, is the part of
Mures River between Brani ca and Ilia, 3 to 12 km North-West from the project site (Figure 9-13). This site has been
designated as a “site of community importance” according to the European Habitats Directive4 in 2011 but does not
need any caution concerning the management or species to be protected.
It should be noted that a part of the Mures River itself is included in the designation, requiring particularly attention
concerning the water intake and discharge for the project.
4
Council Directive 92/43/EEC on the conservation of natural habitats
9-6
Figure 9-13 Protected Area near the Project Site
Project site
Legend:
Green with Red line borders: Site of Community Importance (SCI)
(Source: prepared by the study team based on HP
http://atlas.anpm.ro/atlas?themeId=47&showIds=2996&x=502400.1716409733&y=494383.5268450371# and
Directorate-General for Environment (EU))
d) Air Quality
In Romania, there are currently 148 air quality monitoring stations, equipped with automatic and continuous
measurement of main air pollutants. The Re eaua Na ional de Monitorizare a Calit ii Aerului (National Network for
Monitoring Air Quality: RNMCA) comprises 41 local centers that gather and broadcast panel data information to the
public after validation of the National Environmental Protection Agency.
Currently, RNMCA monitors continuously SO2, NOx, CO, ozone (O3), PM10 and PM2.5, etc. Air quality at each station
is represented by the suggestive quality indices, derived from the main air pollutants measured concentration values, as
shown in Figure 9-13 to Figure 9-14.
9-7
Figure 9-13 Air Pollutant Monitoring Stations in Romania
Deva city
30km
(Source: prepared by the study team based on HP http://www.calitateaer.ro/public/home-page/?__locale=ro)
9-8
Figure 9-15 Closest Monitoring Stations from the Project Site (HD-1 and HD-2)
Project Site
Figure 9-14 Details of the Air Monitoring for Station HD-2 (October 22, 2018)
The air quality data at the closest monitoring station from the power plant (HD-2) for 2017 are as shown in Table 9-2
below. It can be said that overall concentrations were in accordance with the Romanian standards except for the
maximum daily average value for PM10 that largely exceeds the limit standard.
According to Deva CFPP, given the fact that the monitoring station is located 10km from the power station, the
exceedance cannot be explained only by the operation of the power plant, but also by activities and traffic in Deva city
and industrial emissions from the factories around the site (cement production etc.).
9-9
Table 9-2 Air Quality Monitoring Results at HD-2 Monitoring Station Throughout 2017
Romanian standards
Monitored data Critical Level
Parameter IFC* standards
at HD-2 Limit (impact on
vegetation)
Max hourly average
310.26 350 - -
( g/m3)
SO2 Max 24-hour average 125 (IT-1**)
41.85 125 -
( g/m3) 20 (Guideline)
Yearly average ( g/m3) 10.26 - 20 -
Max hourly average
108.06 200 - 200
NO2 ( g/m3)
Yearly average ( g/m3) 16.58 40 - 40
NOx Yearly average ( g/m3) 32.10 - 30 -
Max 24-hour average 150 (IT-1)
143.62 50 -
( g/m3) 50 (Guideline)
PM10
70 (IT-1)
Yearly average ( g/m3) 23.27 40 -
20 (Guideline)
35 (IT-1)
PM2.5 Yearly average ( g/m3) - 25 -
10 (Guideline)
Max. 8-hour average
CO Max daily 2.51 10 - -
(mg/m3)
*International Finance Corporation: IFC
** IT-1: Interim Target 1
(Source: prepared by the study team based on Law No.104/2011 and IFC Environmental, Health, and Safety (EHS)
Guidelines)
e) Water Quality
Water quality of the Mures River is monitored monthly by the Water Environment Agency. Based on the results of the
monthly monitoring, the ecological status of the river is determined according to a classification established in
Ordinance No.161/2006.
According to the monitoring results, Mures River around the project site is a water source of Category II. Although the
concentrations in are not the water quality standard values for Mures River, it can be considered as a good representation
of the biophysical and chemical characteristics of this water body.
Table 9-3 Characteristics of a Class II Water Body

Water Quality
Parameters Unit
Class II
pH - 6.5-8.5
Dissolved oxygen mg O2/L 7
-Epilimnion (top-most layer) mg O2/L 70-90
-Hipolimnion (deeper layer) mg O2/L 70-50
- Non-stratified waters mg O2/L 70-50
Chemical Oxygen Demand (COD(c))-Cr mg O2/L 25
COD(c)-Mn mg O2/L 10
Biochemical oxygen demand (BOD5) mg O2/L 5
Ammonium (NH4+) mg/L 0.8
Nitrite (NO2-) mg/L 0.03
Nitrate (NO3-) mg/L 3
Total Nitrogen mg/L 7
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Water Quality
Parameters Unit
Class II
Soluble orthophosphates (PO43-) mg/L 0.2
-
Total phosphorus (PO4 ) mg/L 0.4
Chlorophyll “a” g/L 50
Dry filtrate residue at 105°C mg/L 750
Chlorine (Cl-) mg/L 50
Sulfates (SO42-) mg/L 120
Calcium (Ca2+) mg/L 100
Magnesium (Mg2+) mg/L 50
Total Chromium (Cr) g/L 50
Copper (Cu) g/L 30
Zinc (Zn) g/L 200
Arsenic (As) g/L 20
Barium (Ba) mg/L 0.1
Selenium (Se) g/L 2
Cobalt (Co) g/L 20
Pb g/L 10
Cd g/L 1
Total Iron (Fe2+ ; Fe3+) mg/L 0.5
Hg g/L 0.3
Total Manganese (Mn2+; Mn3+) mg/L 0.1
Nickel (Ni) g/L 25
Total Phenols g/L 5
Active anionic detergents g/L 200
Absorbable Organic Halides g/L 50
(Source: prepared by the study team based on Ordinance No.161/2006)
f) Noise
Noise levels at the project site boundary and at the nearest residential area (Mintia and Vetel villages) along the national
road were monitored in 2015 and the results are presented in Table 9-4. It can be seen that noise levels are in accordance
with the Romanian noise level standards.
It can be stated that as the residential areas are located 2 to 2.5km from the project sites, there is low risk that the noise
from the power plant reaches those areas.
Table 9-4 Noise Level within and outside the Existing Power Plants in 2015
Romanian standards IFC standards
Daily
average Daytime Night time Daytime Night time
(07:00-22:00) (22:00-07:00) (07:00-22:00) (22:00-07:00)
At the site
boundary 51.3 65 55 70 70
(Industrial area)
At the nearest
43.1 55 - 55 45
residential area
(Source: prepared by study team based on Ordinance No.152/558/1119/532/2008 and IFC EHS Guidelines)
g) Soil
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Soil monitoring in the project site was conducted in 2016 and 2017. The monitoring points were chosen within the
existing power plant, in areas where a risk of potential contamination was high, such as the coal storage yard, oil
reservoir, fuel discharge area, etc. The relative locations of the sampling points are shown in Figure 9-15.
The results are in accordance with the Romanian standards as shown in Table 9-5 below. It can be said that the risk of
soil contamination is low within the project site, but a soil analysis of the defined site would be recommended before
the development of the new project.
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Figure 9-15 Relative Locations of the Soil Sampling Points
4, 5, 8
2
1
Point 1: Railway station

Point 2: Coal storage yard
Point 3: Mintia (out of the map range)
Point 4: Oil fuel discharge
Point 5: Transformer oil reservoir
Point 6: A point 800 m away from the power station site (out of the map range)
Point 7: Mintia (out of the map range)
Point 8: Oil fuel storage
(Source: prepared by the study team based on interview with CEH and Google Earth)
Table 9-5 Results of the Soil Monitoring in the Existing Power Plant
Point
Parameter Unit Point 2 Point 3 Point 4 Point 5 Point 6 Point 7 Point 8 Standard
1
Cu mg/kg 30 63 33 46 49 84 29 21 250
Zn mg/kg 118 159 112 129 145 216 105 107 700
Pb mg/kg 85 71 30 42 47 65 25 29 250
Ni mg/kg 32 50 27 30 41 79 13 32 200
Cd mg/kg <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 5
As mg/kg <0.1 1 <0.1 1 <0.1 3 <0.1 <0.1 25
Cr mg/kg 65 97 63 52 65 126 42 53 300
Co mg/kg 10 20 8 5 6 17 6 3 100
Mn2+;
mg/kg 731 605 695 499 585 620 730 331 2,000
Mn3+
SO42- mg/kg 1,943 4,201 1,132 1,949 4,199 3,804 1,058 1,452 5,000
(Source: prepared by the study team based on analysis results and Ordinance No.756/1997)
h) Land Use and Social Infrastructure
3 potential locations for the project site are considered as of the development of the F/S (See Chapter 4). Between them,
only one case has been studied for the environmental part of this report, Case No.3 because it is considered as the most
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probable site.
Concerning this potential project site, part of the land is owned by the project proponent, Electrocentrale Deva, but the
other part is owned by a private company, i.e. SC Energomontaj SA Bucuresti (Deva branch). Currently, the site is
occupied with brick masonry buildings and scrap metal with an actual occupied area of about 65%., but not inhabited.
The part of the land owned by Energomontaj SA Bucuresti seems not to be occupied or even used at the moment, but
the project proponent should contact the land owner and get information if the land purchase can be proceeded or not,
and with which conditions.
During the Environmental and Social Impact Assessment (ESIA) preparation phase, although detailed primary data will
be collected in order to allow a thorough analysis of the potential social impacts of the project, in a preliminary analysis,
these impacts are likely to be minimal. Existing infrastructure is also expected to be able to support the domestic influx
of workers.
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(2) Environmental Improvements arising with Project Implementation
1) Air Quality Improvement
The installation of a CCPP in line with EU emission standards is the basic environmental management policy for this
project. It will be considered that the CCPP to be newly constructed will replace the Units 5 and 6 of the existing power
plant.
As an EU-country, Romania must comply with the limits established by the EU Directives as transposed into local
Romanian legislation, and in particular with the BAT Conclusions as regulated in Directive 2010/1442.
Currently, in Deva Power Plant, Unit 1 is decommissioned, and Unit 3 is the only one with continuous operation. All
other units are currently available, but not operated continuously. Unit 2, Unit 5 and Unit 6 are planned to be
decommissioned in 2019 and 2020, respectively. The current operation condition of the power plant is presented in
Table 9-6.
Table 9-6 Current Operation Situation in Deva Power Station (as of November 2018)
Electrical output In operation
Unit Comments
(MW) (Yes/No)
1 Decommissioned Decommissioned Decommissioned
No but available for

2 210 To be decommissioned in 2019
operation
Refurbished in 2007.
3 235 Yes To be used continuously in the future (with
limited capacity)
To be refurbished
4 210 To be used continuously in the future
operation
(with limited capacity)
operation
operation
Since the project will be developed within the boundaries of the existing power plant, cumulative impacts of air pollutant
release and their control are to be considered. However, it can be said that the decommissioning of Units 2, 5 and 6
before 2020 (before or during the implementation of this project) will decrease the emissions of NOx, SOx, CO, PM10
and other air pollutants from the power plant.
Moreover, as the existing power plant is coal-fired and the new one will be gas-fired, the emission from the CCPP to be
newly constructed for the same amount of energy will decrease significantly.
a) Current Air Emission Concentration
Concerning the emission of pollutants in the existing power plants, the overall situation is that most of the equipment is
very old and does not comply with current EU and national emission standards. To remedy this issue, Electrocentrale
Deva was given a period of derogation or transition period by the European Committee to improve, replace, or shut
down the existing equipment for compliance with the environmental legislation. Only Units 3 and 5 have been in
operation for the last 2 years.
The current operation situation in Deva power plant is shown in Table 9-7.
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Table 9-7 Recent Air Emission Concentration in Deva Existing Power Plant
2016 2017
Parameter Unit
No3 No5 No3 No5
Thermal Power output MW 1,056 1,056 1,056 1,056
Fuel - Hard coal Hard coal Hard coal Hard coal
Flow rate (Wet gas) ×103 Nm3/h 355.81 289.06 288.39 327.21
Flow rate (Dry gas) ×103 Nm3/h 355.81 289.06 259.62 294.84
o
Temperature C 160 160 160 160
Stack height m 220 220 220 220
Stack diameter m 30 30 30 30
Exhaust gas velocity m/s 15 15 15 15
3
Emission SOx mg/Nm 3,867.24 3,091.59 2,720.66 2,090.30
3
concentration NOx mg/Nm 411.77 359.6 422.20 414.77
Dry gas base PM10 mg/Nm 3
220.88 323.32 271.44 -
The emission concentration is high, especially for SOx, which is around 2,000-3,800 mg/Nm3. For NOx and PM10, the
amount of emitted concentrations is also significant, and a continuous operation would not be bearable in the future
from an environmental point of view.
As the CCPP to be newly constructed will only use natural gas as a fuel and consequently will not release SOx and
PM10, the following study will propose to roughly estimate the improvement of the air quality of the surroundings, by
conducting a simple simulation of the NOx emission dispersion of the current unit and the hypothetical future one.
b) Emission Specification of New Equipment
I) CCPP to be newly constructed

Concerning the equipment to be introduced for this project, GT manufactured in japan was selected as a representative.
The GT shows not only high thermal efficiency for a simple cycle GT, but also achieves high overall plant efficiency
for a cogeneration plant and a CCPP. For this project, the 2 on 1 configuration will be used, i.e., 2 GT, 2 HRSG and 1
ST for a total output of more than 340MW.
II) Emission Specification
This GT is equipped with special low-emission burning systems which contribute to extremely low NOx emissions (30
mg/Nm3@15%O2 (Oxygen)) in the exhaust gas. These levels fully comply with Romanian and EU emissions regulations.
Table 9-8 Predicted Emission Concentration against Emission Standards for a New GT
Predicted EU standards
Romanian
Item Unit emission Yearly 24-hour IFC standards
standards
concentration average average
NOx mg/Nm3 30* 50 10-30 15-40 51
* O2 15% equivalent, 1-hour average
(Source: Prepared by the study team based on Law No.278/2013, Decision 2017/1442/EU and IFC EHS Guidelines)
III) Consideration of the Downwash
The presence of the existing turbine building next to the project site could lead to the formation of downwash when the
plume is exhausted.
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This is expected to occur when the two conditions below are met.
- H < HB + 1.5L
with H: the stack height
HB: Height of the nearby building at the base of the stack
L: width of the building
(Source: Good Engineering, Practice Stack, Height (Environmental Protection Agency (EPA))
- The wind direction blows principally from the exhaust stack towards the nearest building
According to the baseline survey, it appears that the wind in the region blows principally from the North-West/West
direction, which coincides with the direction from the stack toward the nearest building. Therefore, the height of the
stack must be evaluated.
Figure 9-18 View of the Building Adjacent to the Project Site
(Source: Photo by the study team)
In this case, the adjacent existing building has a height of approximately 50m, and a width of 20m.
It means that the stack height is to be taller than 50+20*1.5 = 80 m at least to avoid the risk of downwash.
In the following prediction, the stack height of the new power plant was chosen at 80m.
c) Simulation Theory
The prediction regarding the dispersion of air pollutant is approached by mathematical models in conformity to the time
scale of the environmental standard in EU and Romania.
The model regarding dispersion of air pollutant is shown in the following formula (Gaussian model).
 2   2  2 
exp  exp (z He)  exp (z He)  × 106
2 
P
(x,y,z) 2 2
2 y z  2 z   2 z   2 z 
(Source: Lecture of Air Environment Prediction, Shinichi Okamoto, 2001)
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C: Ground concentration at a point R (m) below the downwind axis
Qp: Emission volume (g/s)
y: Parameter in the horizontal direction (m)
z: Parameter in the vertical direction (m)
U: Wind speed (m/s)
R: Horizontal distance between emission source and calculated point (m)
z: Ground height
He: Effective stack height (m)
He H+ H
H: Stack height (m)
H: Emission gas elevation height (m): following CONCAWE formula
H 0.175 QH1/2u 3/4

QH: Exhaust heat (cal/s)
u: Wind speed at the top of stack (m/s)
QH * Q * Cp * T
: Emission gas density at 0°C (cal/s) (1.293×103g/m3)
Q: Amount of exhaust gas per unit time (Nm3/s
Cp: Constant pressure specific heat (0.24cal/K/g)
T: Difference between emission gas temperature and atmospheric temperature (K)
Calculation is performed based on the atmospheric stability and wind speed around the stack outlet, according to the
Pasquill atmospheric stability classes. The classification consists in separating the atmospheric turbulence into six
stability classes named A, B, C, D, E and F with class A being the most unstable or most turbulent class, and class F the
most stable or least turbulent class.
In unstable atmospheric conditions, air pollutant particles tend to stagnate around the stack outlet whereas in stable
conditions, particles will tend to disperse well in the atmosphere, decreasing the concentration in air. Therefore, the
concentration will be higher for Class A than for Class F.
The stability depends on the solar radiation amount and wind speed. According to the meteorological data in Deva, the
wind speed on average is in the range of 1 – 4 m/s and the annual radiation amount is 1,100kWh/m2, (0.13 kW/m2)5 in
a year, corresponding to class B – C. To prepare for the worst-case scenario, the simulation will be conducted for the
most unstable class, class B, and for the wind speeds shown in Table 9-9.
Table 9-9 The Condition of the Stability and Wind Speed

Stability Class Wind speed at ground level (m/s)
Unstable B 1, 1.5, 2, 2.5, 3, 3.5, 4
d) Simulation Result – Dispersion from 1 Unit
Table 9-10 shows the exhaust volume, temperature, speed, and emissions of NOx emitted from the stack for the new
power plant, predicted for winter time when the emission concentration is higher, as a worst-case scenario.
Table 9-10 Emission Specification

Parameter Unit Value
Type - “Combined Cycle”

Electrical output MWe 373.857
5
https://solargis.com/maps-and-gis-data/download/romania/
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Parameter Unit Value
Heat output (if any) Gcal/hr 25.795
Efficiency % 61.28
Emission volume (wet) Nm3/h 903,000
Emission volume (dry) Nm3/h 832,000
Exhaust temperature ºC 70
Stack height m 80
Stack inner diameter m 5
NOx emission concentration (dry base) mg/Nm3 30
NOx emission volume (dry base) kg/h 25
The variation of NO2 predicted hourly concentration according to the distance from the emission source is shown in the
Figure below. The maximum NO2 concentration at ground level is 4.14 µg/m3, where wind speed is 1 m/s with
atmospheric stability B. This concentration is extremely small (2%) compared to the Romanian and EU standards (200
µg/m3).
Figure 9-19 Predicted NO2 Hourly Concentration According to the Distance from Emission Source for the CCPP to be
newly constructed
NO2-Stability B
4.5
4.0
1m/s
3.5
1.5m/s
3.0 2m/s
g/m3
2.5 2.5m/s
2.0 3m/s
1.5 3.5m/s
1.0 4m/s
0.5
0.0
0 2000 4000 6000 8000 10000
distance from source (m)
e) Simulation Result – Comparison between Baseline and Future Scenario
In this comparative study, it will be considered that as a baseline scenario, Units 3, 4, 5 and 6 are in operation and as a
future scenario, the CCPP to be newly constructed replacing Units 5 and 6 will be in operation in addition to Units 3
and 4 still in operation.
The emission data of Unit 4 and Unit 6 will be calculated based on the emissions from Unit 3 and Unit 5 respectively
by adjusting the power output. The base data used to determine the equivalence between those Units is shown in the
Table below.
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Table 9-11 Data to Determine the Equivalence between Unit 3 and 4 and Unit 5 and 6, Respectively
Unit 3 Unit 4 Unit 5 Unit 6
Electrical output (MW) 235 210 210 210
Equivalency with Unit 3 1 0.89 - -
Equivalency with Unit 5 - - 1 1
When comparing the output of Unit 3 and 4 and Unit 5 and 6 respectively, it turns out that the output of Unit 4 is
equivalent to 0.89 times the output of Unit 3 and the output of Unit 6 is equivalent to the output of Unit 5. As the Outputs
of all Units are close, they will be considered as equivalent in the following part to simplify the calculations.
Therefore, the Block Unit 3 & 4 will be considered equivalent to 2×Units 3 and the Block Unit 5&6 will be considered
equivalent to 2×Units 5.
The comparison of the emission specification is detailed in the Table below.
Table 9-12 Comparison of the Emission Specification between Baseline and Future Scenario
Item Unit Baseline scenario Future scenario
System - Unit 3&4 Unit 5&6 Units 3&4 New
Equivalent - 2×Unit 3 2×Unit 5 2×Unit 3 -
Electrical output MW 470 420 470 374 *
Emission volume (wet) Nm3/h 2×288,390 2×327,210 2×288,390 903,000
Exhaust temperature ºC 160 160 160 70
Stack height m 220 220 220 80
NOx emission mg/Nm3 2×422.20 2×414.77 2×422.20 30
NOx emission kg/s 2×0.067 2×0.075 2×0.067 0.0069
* rounded up to the next unit
The simulation was realized supposing that the stack of Block 3&4 and the stack of Block 5&6 were spaced by about
80m, and the same hypothesis was chosen for the distance from Block 3&4 and the CCPP to be newly constructed. The
respective positions of those blocks are indicated in the Figure below.
As the wind blows mainly from West to East on the project site, the stack of Unit 3&4 was taken as the emission origin
of the simulation of the baseline prediction. The stack of the CCPP to be newly constructed was taken as the emission
origin of the future scenario prediction because it is further west than the stack of Unit 3&4.
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Figure 9-20 Relative Position of the Existing and Future Power Plants in the Simulation
I) Baseline Scenario
The variation of NO2 predicted hourly concentration according to the distance from the emission source for the baseline
scenario (Unit 3, 4, 5 and 6 all together) is shown in the Figure below. The maximum concentration of NOx at ground
level is obtained at the wind speed of 1 m/s with atmospheric stability B, where the concentration is 63.1 µg/m3,
corresponding to approximately 32% of the EU and Romanian environmental quality standards (200 µg/m3).
Figure 9-16 Predicted NO2 Hourly Concentration According to the Distance from Emission Source for the Baseline
Scenario
NO2-Stability B
70.0
1m/s
60.0
1.5m/s
50.0 2m/s
2.5m/s
40.0 3m/s
g/m3
30.0 3.5m/s
4m/s
20.0
10.0
0.0
0 2000 4000 6000 8000 10000
II) Future Scenario

The variation of NO2 predicted hourly concentration according to the distance from the emission source for the baseline
scenario is shown in the Figure below. The maximum concentration at the ground level of NOx is highest at the wind
speed of 1 m/s with atmospheric stability B, where the concentration is 34.2 µg/m3, corresponding to approximately
17% of the EU and Romanian environmental quality standards (200 µg/m3). It can be noted that as expected, the
contribution of the CCPP to be newly constructed is smaller than the existing Units, and the maximum concentration of
pollutant in the future scenario is 46% lower than in the baseline scenario. Moreover, the decrease could be more
significant if some technical improvement is brought in the future for Units 3&4 to reduce the emission from those
Units.
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Figure 9-17 Predicted NO2 Hourly Concentration According to the Distance from Emission Source for the Future
Scenario
NO2-StabilityB
40.0
35.0
1m/s
30.0 1.5m/s
25.0 2m/s
g/m3
20.0 2.5m/s
3m/s
15.0 3.5m/s
10.0 4m/s
5.0
0.0
0 2000 4000 6000 8000 10000
2) CO2 Emissions Reduction
It is predicted that the proposed power plant will have higher generation efficiency than the existing power plant
and will contribute to a reduction of CO2 emissions – the likely reduction in CO2 emissions has been calculated as
explained below.
a) Calculation Method
The expected reduction amount of CO2 emissions amount was calculated according to the following equation.
ERy = BEy - PEy
with:
ERy: CO2 yearly emission reduction due to the project implementation (t-CO2/y)
BEy : CO2 baseline yearly emission (t-CO2/y)
PEy : CO2 yearly emission from the new power plant (t-CO2/y)
BEy and PEy are defined according to the equations below.
BEy = EGBLy x EFBLy

with:
EGBLy: Yearly electricity production (MWh/y)
EFBLy: CO2 emissions factor (t-CO2/MWh)
PEy = EGPJy x EFPJy

with:
EGPJy: Yearly electricity production (MWh/y).
EFPJy: CO2 emissions factor (t-CO2/MWh)
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It will be considered that the future yearly electricity production amount (EGPJy) is equal to the current electricity
production (EGBLy), to facilitate the comparison study.
This gives the following equation.

ERy = EGBLy x (EFBLy – EFPJy)
b) Calculation Conditions
In the existing power plant, CO2 emission is monitored and the power plant released 862,965 tCO2 to produce
885,122 MWh and 141,148Gcal in 2017. The emission factor for the baseline can be then determined (Table 9-13).
Table 9-13 Calculation of the Emission Factor of the Existing Power Plant (the Data in 2017)
Item Unit Value Comment
Electrical output MWh 885,122
1MWh = 0.860 Gcal
Thermal output Gcal 121,366
Eq. to 141,149 MWh
Yearly thermal production (net) Electrical + Thermal
MWh 1,026,271
(EGBLy) output
CO2 emission amount (BEy) tCO2 862,965
CO2 emissions factor (EFBLy) tCO2/MWh 0.841 Calculated *
*
EFBLy = BEy / EGBLy
For the new power plant, the CO2 emission factor (EFPJy) was determined according to a set of data related to the
electricity generation of new equipment, efficiency, the fuel heat value and carbon content, as presented in the
table below (annual average). Data related to the fuel specification was provided by the existing power plant (Table
9-14).
Table 9-14 Data Used for the Calculation of CO2 Emission Factor for the New Power Plant
Item Unit Value Comment
Low Heat Value (LHV) kJ/kg 49,508
Fuel carbon content rate (C%) mass% 74.26
Fuel CO2 emission factor (COEFi) tCO2/TJ ***
54.96 Calculated*
Gross thermal efficiency ( PJy) % 58.32****
CO2 emission factor (EFPJy) tCO2/MWh 0.339 Calculated**
*
COEFi = (C%/100) / LHV x (44.01/12.011) x 106
**
EFPJ,y={COEFi / ( PJy / 100)} x 0.0036
***
TeraJoule (TJ)
****
Overall efficiency at rated load considering annual average heat supply of 16 MW
Finally, the emission reduction amount could be calculated as follows (Table 9-15).
Table 9-15 Calculation of the CO2 Emission Reduction

Item Unit Value
Yearly thermal production (EGBLy) MWh 1,026,271
Baseline CO2 emissions factor (EFBLy) tCO2/MWh 0.841
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Item Unit Value
Future CO2 emission factor (EFPJy) tCO2/MWh 0.339
Emission reduction amount (ERy) tCO2 515,188
The implementation of this project will enable to reduce the CO2 emission amount of 515,188 tCO2/y, which
represents an annual emission reduction of approximately 60% (rounded up to the next whole number).
3) Water Effluent
The wastewater effluent data for the existing power plant are shown in Table 9-16. The current power plant complies
with the Romanian effluent standards.
Table 9-16 Wastewater Effluent Data of the Existing Power Plant

Monitoring results (2017) Romanian IFC standards
Parameter Unit standards
1 2 3
Temperature +3°C above
difference* 35 °C after
°C 10 10 10 ambient water
discharge
( T) temperature
pH - 8.31 7.715 7.695 6.5-8.5 6-9
Total Suspended mg/L 11.6 16.4 17 35.0 50
solids (TSS)
BOD5 mg O2/L - 12.3 - 20 30
COD(c) mg O2/L < 30 < 30 - 70 125
Total Nitrogen mg/L - 0.6508 - 10 10
PO4- mg/L - - - 1.0 2
Oil mg/L - - - 5.0 10
As mg/L 0.01 0.01 0.01 0.1 0.5
Cd mg/L 0.025 0.025 0.025 0.2 0.1
Cu mg/L - - - 0.1 0.5
Ni mg/L - - - 0.5 -
Zn mg/L 0.02 0.02 0.02 0.5 1.0
Pb mg/L 0.004 0.004 0.004 0.2 0.5
Hg mg/L 0.01 0.01 0.01 0.05 0.005
Mn2+; Mn3+ mg/L 0.01 0.01 0.01 Total Mn 1.0 -
Total coliform MNP/100mL - - - 400 400
Cr mg/L < 0.005 0.02 < 0.005 Total 1.0 0.5
Mg2+ mg/L 18.045 8.12 13.978 100.0 -
Ca2+ mg/L 106.313 44.29 39.478 300.0 -
Fe2+ ; Fe3+ mg/L 0.0633 0.0046 0.0481 5.0 1.0
SO42- mg/L 210 50.41 49.8 600.0 -
Cl- mg/L 70.905 72.879 48.172 500.0 -
*Temperature difference between the intake and discharge outlet
(Source: prepared by the study team based on NTPA -001/002 and IFC EHS Guidelines)
Also, it has been reported that the water amount in the Mures River is sometimes not sufficient for use in the power
plants. Currently, about 27,000 m3/h of water is drawn from the river for each unit in operation as cooling water. The
new plant is expected to use about 29,000 m3/h, and as this new unit is planned to substitute Units 5&6 of the existing
power plant, the reduction of water consumption of 25,000m3/h is expected.
9-24
Moreover, to lower the impacts of the water use, 3 cooling water paths have been used for the existing power plant. By
utilizing this design to the new project, the impacts on Mures River use due to the water intake is expected to decrease.
Within the scope of the EIA procedure, the project proponent will have to obtain a water use permit.
Concerning the thermal discharges, the existing plants discharge thermal effluents 10°C warmer than at the intake point.
On the other hand, the new power plant will discharge the thermal effluents 7°C warmer, having a lower impact than
the exiting power plants on the surrounding water environment.
According to the Romanian legislation, the concentration of chemical and biochemical substances in water discharges
is limited by the local water protection agency for each power plant. One of the requirements is to release the water
discharges with a lower concentration of the substances than at the intake. It is then recommended that before the project
development, the project proponent get the information about the applicable water discharge standards and take
measures to comply with them.
4) Waste Generation and Processing
Waste in the existing power plant is properly processed in accordance with Romanian legislation6. As seen in Table 9-
17, hazardous waste is either managed onsite or disposed by a specialized company. Coal ash is permanently stored in
the power plant site and coal ash is permanently stored in the power plant site and fly ash is processed outside of the
power plant after mixing it with water and gypsum in a dense slurry system to avoid flying and dispersion.
Table 9-17 Waste Generated in the Existing Power Plant and its Process Method
Disposal method
Classification
Description of waste Content (Recycled by 3rd party, disposed of in
of waste
an authorized landfill, etc.)
Bottom ash, slag and
Ash and slag Permanent storage onsite
boiler coal powder
Flying ash from coal Disposed outside of the power plant,
Flying ash from landfill
burning in a dense slurry system
Scrapings and iron swarf Iron Onsite disposal
Construction materials
Construction materials Onsite disposal
(bricks)
Non-hazardous Wood Wood Onsite disposal
waste Copper, bronze, brass Copper, bronze, brass Onsite disposal
Aluminium Aluminium Onsite disposal
Iron and steel Iron and steel Onsite disposal
Copper, aluminium Copper, aluminium
Onsite disposal
insulation cables insulation cables
Mineral wool Mineral wool Disposed by specialized companies
Paper and cardboards Paper and cardboards Onsite disposal
Household waste Household waste Disposed by specialized companies
Non-chlorinated mineral
oils from transmission Oil Onsite disposal
and lubrication engines
Turbine oil Oil Onsite disposal
Hazardous
Transformer oil Oil Onsite disposal
waste
Glass/plastic waste Glass/plastic waste Disposed by specialized companies
Oil-soaked cloths Oil-soaked cloths Disposed by specialized companies
Lead batteries Batteries Disposed by specialized companies
Asbestos Asbestos Disposed by specialized companies
6
More details regarding the Romanian legislation on Waste is presented in the chapter “Overview of Romanian legal
standards and requirements”.
9-25
Disposal method
Classification
Description of waste Content (Recycled by 3rd party, disposed of in
of waste
an authorized landfill, etc.)
EEE* with dangerous
Lighting fixtures, bulbs Disposed by specialized companies
compounds
EEE with dangerous
Electronic components Disposed by specialized companies
compounds
* Electrical and Electronic Equipment: EEE
As the new equipment will be operated only with natural gas, it is expected that the waste amount will be reduced
significantly, in particular concerning the bottom ash, flying ash and coal powders, reducing the risks of soil,
underground water and air pollution.
9-26
(3) Summary of the Preliminary Assessment of the Potential Environmental
and Social Impacts of the Project (JBIC Checklist for Thermal Power Plants)
The answers to the JBIC Checklist below are applicable to all equipment described at this stage in the project. It may
be necessary to revise the content below upon consultation with the client after more details regarding the final design
for each equipment are defined.
Environmental and Social considerations

Potential
Main Check Items and appropriate mitigating or control
impact/benefit
measures
1. Permits and Approvals, Explanation
(1) ESIA and Environmental Permits
1) Have ESIA reports been officially completed? Not According to Romanian law, a full ESIA
Have ESIA reports been written in the official applicable would be required for the development of the
language or a language widely used in the host new plant because it is a thermal power plant
country? project with the output of 300MW or more.
2) Have ESIA reports been approved by the A water use permit is to be obtained within
government of the host country? the scope of the ESIA.
3) Have ESIA reports been unconditionally
approved? If conditions are imposed on the The ESIA will be prepared by certified
approval of ESIA reports, are the conditions environmental consultants hired by the
satisfied? project developer.
4) In addition to the above approvals, have other
required environmental permits been obtained from
the appropriate regulatory authorities of the host
country’s government?
(2) Explanations to the Public
1) Is the project accepted in a manner that is socially Not Stakeholders meetings will be conducted
appropriate to the country and locality throughout applicable according to the ESIA regulation in
the preparation and implementation stages of the Romania, which require at least one public
project based on sufficient consultations with consultation (during EIA draft stage).
stakeholders, such as local residents, conducted via Opinions from local residents and interested
disclosure of project information and potential parties will be appropriately collected during
impacts? the meetings.
2) Are the records of such consultations with the
stakeholders, such as local residents, prepared? Written material and the draft ESIA report
3) Are the written materials for the disclosure will be made available for perusal and
prepared in a language and form understandable to comment by the public according to
the local residents? Romanian regulation. After their comments
4) Are ESIA reports available at all times for perusal are reflected in the final version of the ESIA,
by stakeholder such as local residents, and copying the ESIA will be evaluated by the
of the reports permitted? Environmental Agency of Hunedoara.
5) Are proper responses made to comments from the
public and regulatory authorities?
2. Anti-pollution Measures
(1) Air Quality
1) Do air pollutants, such as SOx, NOx, and soot and Small The Implementing entity will employ state-
dust emitted by the power plant operations comply of-the-art gas combustion technologies (GT)
with the host country’s emission standards? that are compliant with EU emissions
standards. Therefore, not only will the plant
be compliant with EU regulations, it will also
substantially reduce the emission of air
pollutants to the environment as compared to
the current equipment in the existing power
9-27
Potential
impact/benefit
measures
plant.
2) Are adequate measures taken to prevent air Not Not applicable to this project concerning the
pollution by coal dust scattering from coal storage applicable development of a GFPP.
and coal transport equipment, dust from the coal ash
disposal sites, in the case of CFPP?
3) Is there a possibility that air pollutants emitted Small The project’s ESIA will conduct necessary
from the project will cause areas that do not comply air pollutant simulations and monitoring
with the host country’s ambient air quality considering the final equipment distribution
standards? within each plant in order to evaluate the
impacts on the surrounding airshed.
4) Are adequate measures taken to reduce Small This project will employ highly efficient gas
Greenhouse Gas (GHG) emissions from the project? combustion technologies which, in general,
have the potential to largely reduce GHG
emissions in comparison with conventional
technologies. As an extension to this, GHG
emissions are expected to be significantly
reduced with the introduction of the new
equipment, as compared to current
combustion equipment.
(2) Water Quality
1) Do effluents including thermal effluents from the Small Thermal effluents will comply with
power plant comply with the host country's effluent Romanian wastewater discharge standards,
standards? and the temperature of the effluent is
expected to be lower than in the existing
plant.
2) In the case of CFPP, do leachates from coal piles Not Not applicable to this project concerning the
and coal ash disposal sites comply with the host applicable development of a GFPP.
country's effluent standards?
3) Does the quality of sanitary wastewater and Small All wastewater will be treated in the
stormwater comply with the host country's effluent wastewater treatment plant within the project
standards? site and be discharged into the municipal
sewerage network within the limits of
Romanian regulations.
4) Are adequate measures taken to prevent Negligible The project equipment will be completely
contamination of surface water and groundwater by leveled and paved. It will be surrounded by a
these effluents? Is there a possibility that the storm water collection system, as well as
effluents from the project will cause areas that do not isolated areas where potentially hazardous
comply with the host country’s ambient water chemicals and other materials are stored. No
quality standards? untreated wastewater will be released from
the equipment.
(3) Waste
1) Are wastes, (such as waste oil, and waste Small The plant operator appropriately processes
chemical agents), coal ash, and by-product gypsum and dispose of wastes in accordance with the
from flue gas desulfurization generated by the power laws of Romania. The amount of waste
plant operations properly treated and disposed of in subject to laws and regulations is small
accordance with the laws and regulations of the host because the new power plant of this project
country? is a CCPP.
(4) Soil Contamination
1) Has the soil at the project site been contaminated Small According to recent soil monitoring results,
in the past, and are adequate measures taken to no soil contamination is observed in the
prevent soil contamination? project site. Adequate measures such as good
9-28
Potential
impact/benefit
measures
oil storage management will be taken to
prevent soil contamination during operation.
(5) Noise and Vibration

1) Do noise and vibrations from the operation Small Studies of noise and vibration are thoroughly
comply with the country’s standards? conducted in all equipment at the moment,
with no major issues regarding standard
compliance. New studies will be conducted
during the ESIA preparation phase due to the
introduction of the new equipment.
However, as there is no settlement near the
project site, noise will not be an important
source of impact. Noise levels will be
maintained within the limits established in
Romanian legislation.
2) For CFPP, will the coal unloader, storage and Not Not applicable to this project concerning the
transportation equipment be designed to minimize applicable development of a GFPP.
noise impacts?
(6) Subsidence
1) In the case of withdrawal of a large volume of Not No groundwater will be withdrawn as related
groundwater, is there a possibility that it will cause applicable to this project.
subsidence?
(7) Odor
1) Are there any odor sources? Are adequate odor Negligible No substantial odor sources are expected.
control measures taken?
3. Natural Environment
(1) Protected Areas
1) Is the project site located in protected areas Negligible In this project, serious impact on protected
designated by the host country’s laws or areas is not expected since environmental
international treaties etc.? Is there a possibility that impact can be reduced by conversion from
the project will significantly affect the protected existing CFPP to CCPP.
areas?
(2) Ecosystem and Biota
1) Does the project cause significant conversion or Negligible The project site was already developed by
significant degradation of forests with important the land owner. Practically no vegetation
ecologically value (including primary forests and clearing will be necessary.
natural forests in tropical areas) and habitats with
important ecological value (including coral reefs,
mangrove wetlands and tidal flats)?
2) In case the projects involve the significant Negligible No “significant conversion or degradation of
conversion or degradation of natural habitats natural habitats” is expected.
including natural forests, is the avoidance of
impacted considered preferentially? If the impacts
are unavoidable, will the appropriate mitigation
measures be taken?
3) Will the evaluation of the impacts on natural Negligible No impact is expected because the project
habitats by the project and consideration for the site was already developed by the land
offset measures be carried out based on expert owner. It will be professionally evaluated by
opinion? environmental consultants in ESIA.
4) Is the illegal logging of the forest avoided? Not Not applicable to this project because the
applicable project site was already developed by the
9-29
Potential
impact/benefit
measures
land owner.
5) Does the project site encompass the protected Not No protected or endangered species have so
habitats of endangered species designated by the applicable far been identified.
host country's laws or international treaties etc.?
6) Is there a possibility that the amount of water (e.g. Small The cooling water will be intake from the
surface water, groundwater) used by the project will nearby river and discharged to it in this
adversely affect aquatic environments such as rivers, project. 3 different intake water cycle routes
in the case of development in the land area? Are are to be applied due to the diversion of
adequate measures taken to reduce the impacts on existing equipment, and therefore minimize
aquatic environments, such as aquatic organisms? the impacts on aquatic environments.
Monitoring of the water quality and effluent
discharge will be conducted to verify the
project does not harm aquatic environment.
7) Is there a possibility that discharge of thermal Small Thermal effluents will be discharged
effluents, intake of a large volume of cooling water according to several water intake scenarios,
or discharge of leachates will adversely affect the but the discharge temperature will meet the
ecosystem of surrounding water areas? Romanian standards. Monitoring of the
water quality and effluent discharge will be
conducted to verify the project does not harm
aquatic environment.
8) If any adverse impacts on ecosystem are Not At the moment, no adverse impacts on
predicted, are adequate measures taken to reduce the applicable particular ecosystems are expected.
impacts on ecosystem?
(3) Topography and Geology
1) Is there a possibility that the installation of Small The project site was already developed.
structures will cause a large-scale alteration of Therefore, some leveling and excavation
topographic features and geological structures in work will be necessary to initiate
and around the project site? construction work, but a large-scale
alteration of topographic features is not
expected.
4. Social Environment
(1) Resettlement
1) Are involuntary resettlement and loss of means of Not The project site is already developed and
livelihoods avoidable by project implementation? applicable owned by a private company. No land
If unavoidable, are efforts made to minimize the acquisition or compensation is expected to
impacts caused by the resettlement and loss of be necessary.
means of livelihoods?
2) Are the people affected by the project provided Not Ditto
with adequate compensation and supports to applicable
improve their standard of living, income
opportunities, and production levels or at least to
restore them to pre-project levels? Also, is prior
compensation at full replacement cost provided as
much as possible?
3) Is the participation of the people affected and their Not Ditto
communities promoted in planning, applicable
implementation, and monitoring of involuntary
resettlement action plans and measures against the
loss of their means of livelihood? In addition, will
appropriate and accessible grievance mechanisms
be established for the people affected and their
communities?
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Potential
impact/benefit
measures
4) Is the resettlement action plan (including Not Ditto
livelihood restoration plan as needed) prepared and applicable
disclosed to the public for the project which will
results in a large-scale resettlement or large-scale
loss of means of livelihood? Does the resettlement
action plan include elements required in the standard
of the international financial institution
benchmarked in its environmental reviews?
5) In preparing a resettlement action plan, is Not Ditto
consultation made with the affected people and their applicable
communities based on sufficient information made
available to them in advance and is explanations
given in a form, manner, and language that are
understandable to the affected people?
6) Has appropriate consideration been given to Not Ditto
vulnerable social groups, such as women, children, applicable
the elderly, the poor, and ethnic minorities in the
resettlement action plan?
7) Are agreements with the affected people obtained Not Ditto
prior to the resettlement? applicable
8) Is the organizational framework established to Not Ditto
properly implement resettlement? Are the capacity applicable
and budget secured to implement the resettlement
action plan?
9) Is a plan developed to monitor the impacts of Not Ditto
resettlement? applicable
(2) Living and Livelihood
1) Is there a possibility that the project will adversely Small It is expected that the creation of
affect the living conditions of inhabitants? Are employment opportunities and active
adequate measures considered to reduce the utilization of local labor force will be taken
impacts, if necessary? to secure labor power associated with the
project.
It is beneficial to the city’s economy.
2) Are sufficient infrastructures (e.g. hospitals, Negligible Local infrastructures are thought to be
schools, roads) available for project sufficient to receive workers because a new
implementation? If existing infrastructure is power plant is built in the site of the existing
insufficient, are plans developed to construct new power plant.
infrastructures or improve existing infrastructures?
3) Is there a possibility that large vehicle traffic Small Transportation of equipment into the
associated with the project will cause impacts on equipment may increase local traffic. It may
road traffic in the surrounding areas? Are adequate be necessary to consider publicizing to local
measures considered to reduce the impacts on residents, considering measures against
traffic, if necessary? traffic accidents and installation of
temporary road signs to organize the traffic
of lorries and local cars in order to mitigate
the increase of traffic impacts.
4) Is there a possibility that the amount of water used Small The cooling water will be intake from the
(including surface water, groundwater) and nearby river and discharged to it in this
discharge of thermal effluents by the project will project. 3 different intake water cycle routes
adversely affect existing water uses and uses of are to be applied due to the diversion of
water areas (especially fishing)? existing equipment, and therefore minimize
the impacts on aquatic environments. It is
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Potential
impact/benefit
measures
recommended that the project proponent
implement a grievance mechanism so that
potential water users and local inhabitants
could raise their comments.
5) Has appropriate consideration been given to Negligible Not applicable to this project because the
vulnerable social groups, such as women, children, project site was already developed.
the elderly, the poor, ethnic minorities and
indigenous peoples?
(3) Heritage
1) Is there a possibility that the project will damage Negligible - No artifacts or site with historical and
the local archeological, historical, cultural, and Small archaeological importance is expected at the
religious heritage sites? Are adequate measures sites. The project developer will establish the
considered to protect these sites in accordance with procedure, according to Romanian law, in
the host country’s laws? order to determine the steps to be taken if any
object or site of target is spotted during
construction work.
(4) Landscape
1) Is there a possibility that the project will adversely Negligible The sites are located in urban environments
affect the local landscape? Are necessary measures with low aesthetic interest, so no substantial
taken? landscape impacts are expected.
(5) Ethnic Minorities and Indigenous Peoples
1) Are the impacts to ethnic minorities and Not No ethnic minorities or indigenous people
indigenous peoples avoidable by project applicable are predicted in the areas.
implementation? If unavoidable, are efforts made
to minimize the impacts and to compensate for their
losses?
2) If the project has adverse impacts on indigenous Not Ditto
peoples' various rights in relation to land and applicable
resources, is such rights respected?
3) Is the indigenous peoples plan prepared and made Not Ditto
public? Does the indigenous peoples plan include applicable
elements required in the standard of the international
financial institution benchmarked in its
environmental reviews?
4) In preparing the indigenous peoples plan, is Not Ditto
consultation made with the affected ethnic applicable
minorities and indigenous peoples based on
sufficient information made available to them in
advance and are explanations given in a form,
manner, and language that are understandable to
them?
5) Are the free, prior, and informed consents of the Not Ditto
indigenous peoples obtained? applicable
(6) Working Conditions (including occupational safety)
1) Is the project proponent not violating any laws Negligible Project operators will implement the project
and regulations associated with the working in compliance with Romanian laws.in regard
conditions of the host country which the project to
proponent should observe in the project?
9-32
Potential
impact/benefit
measures
2) Are tangible safety considerations in place for Negligible in regard toDitto
individuals involved in the project, such as the
installation of safety equipment which prevents
industrial accidents, and management of hazardous
materials?
3) Are intangible measures being planned and Negligible in regard toDitto
implemented for individuals involved in the project,
such as the establishment of a safety and health
program, and safety training (including traffic safety
and public sanitation) for workers etc.?
(7) Community Health, Safety and Security
1) Is there a possibility that diseases, including Negligible Health campaigns and trainings with workers
communicable diseases, such as HIV will be will be conducted as a way to prevent the
introduced due to immigration of workers associated spread of communicable diseases, according
with the project? Are adequate considerations given to Romanian regulations.
to public health, if necessary?
2) Are appropriate measures being taken to ensure Negligible Romanian laws and regulations will be fully
that security guards involved in the project do not complied in regard to security personnel.
violate safety of other individuals involved, or local Security guards will control the entrance of
residents? the site.
5. Other
(1) Impacts during Construction
1) Are adequate measures considered to reduce Small - Large The following mitigation measures
impacts during construction (e.g. noise, vibrations, considering the influence on the parties
turbid water, dust, exhaust gases, and wastes)? could be suggested:
Noise: noise-proofing walls, Personal
Protective Equipment for workers.
Vibration: construction according to
Romanian legislation.
Turbid water: collection channels for
wastewater and treatment.
Exhaust gases: traffic management
developed and implemented.
Wastes: isolated areas, selection of adequate
disposal at authorized equipment.
2) If construction activities adversely affect the Negligible Construction activities are not expected to
natural environment (ecosystem), are adequate cause large impact to the natural
measures considered to reduce impacts? environment, as they will be concentrated in
already developed areas.
3) If construction activities adversely affect the Negligible Construction activities are not expected to
social environment, are adequate measures substantially affect the social environment as
considered to reduce impacts? there is no housing in the surrounding area of
the project site.
(2) Accident Prevention Measures
1) Are adequate accident prevention plans and Small The compliance with legislation regarding
mitigation measures developed to cover both the soft accident prevention and specific plans
and hard aspects of the project, such as develop is required, such as training for
establishment of safety rules, installation of workers regarding safety, installation of fire-
prevention equipment and equipment, and safety extinguishers and correlated equipment,
education for workers? Are adequate measures for installation of sprinklers, preparation of
emergency response to accidental events emergency response plans.
considered?
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Potential
impact/benefit
measures
2) For coal-fired projects, are adequate prevention Not Not applicable to this project concerning the
measures taken against the spontaneous combustion applicable development of a GFPP.
of the coal storage?
(3) Monitoring
1) Are the monitoring programs and environmental Small The monitoring plan has to be prepared
management plans of the project prepared? during the ESIA preparation phase that
includes air emissions/air quality,
effluent/water quality and noise monitoring.
These results are to be periodically submitted
to environmental authorities according to
Romanian regulations.
2) Are the items, methods and frequencies included Small The adequacy of the monitoring plans will be
in the monitoring program judged to be appropriate? evaluated for their technical adequacy and
compliance with Romanian legislation.
3) Does the proponent establish an adequate Small Monitoring teams is to be established
monitoring framework (organization, personnel, according to the environmental management
equipment, and adequate budget to sustain the plans.
monitoring framework)?
4) Are any regulatory requirements pertaining to the Small In Romania, environmental monitoring
monitoring report system identified, such as the reports have a specific format and will have
format and frequency of reports from the proponent to be submitted in a periodicity defined by
to the regulatory authorities? the Environmental Agency.
5) Are the results of monitoring planned to be Small The disclosure of monitoring reports has to
disclosed to the stakeholders of the project? follow local Romanian legislation.
6) Is there a processing mechanism in place, for Small It is suggested that a Grievance Mechanism
solving problems related to environmental and procedure will be established as a channel to
social considerations pointed out by third parties? receive input from third parties regarding the
project.
6. Notes
(1) Reference to Checklists of Other Sectors
1) Where necessary, pertinent items described in the Negligible - At the current project phase, no additional
Power Transmission and Distribution Lines Small installation is planned to be developed.
checklist should also be checked (e.g. projects However, it is possible that a new gas
including installation of electric transmission lines pipeline will be developed within the scope
and/or electric distribution equipment). of the project. In this case, conformity with
additional checklist may have to be applied.
2) Where necessary, pertinent items described in the Not Not within the scope of this project.
Ports and Harbors checklist should also be checked applicable
(e.g. projects including construction of port and
harbor equipment).
(2) Notes on Using Environmental Checklists
1) In the case of CFPP, the following items should Not Not applicable to this project concerning the
be confirmed: applicable development of a GFPP.
- Are coal quality standards established?
- Are the electric generation equipment planned by
considering coal quality?
2) If necessary, the impacts to transboundary or Negligible This project is aimed at reducing
global issues should be confirmed (including the environmental load such as the reduction of
project includes factors that may cause problems, GHG exhausted from the existing power
such as transboundary waste treatment, acid rain, plant, and it is planned to utilize high-
destruction of the ozone layer, and global warming). efficiency CCPP. Therefore, the project is not
9-34
Potential
impact/benefit
measures
expected to cause or contribute to
transboundary or global environmental
issues.
9-35
(4) Overview of Romanian Environmental Legal Standards and
Requirements
The MOE and Sustainable Development of Romania was established in 2007, under Law HG No. 368/2007, which
establishes its organization and functioning.
Under the subordination of the MOE and Sustainable Development, the Agentia Nationala pentru Protectia Mediului
(National Environmental Protection Agency: ANPM) is a specialized body of the central public administration which
has the competence to implement environmental policies and legislation.
ANPM has the following responsibilities:

- Coordinate all environmental-related activities to implement strategies and policies at national, regional and local
levels;
- Be the competent authority in approving activities with an impact on the environment;
- Monitor the status of implementation of Romania's commitments under the implementation plans negotiated with
the European Committee during the accession period;
ANPM is supported by the Agen ii Regionale sau Provincii Autonome pentru Protec ia Mediului (Regional
Environmental Protection Agencies: ARPA) at the regional and local levels.
The framework law on environmental protection in Romania is the Government Emergency Ordinance No.195/2005,
which stipulates the obligation for projects with a significant impact to the environment to apply for several
environmental permits and approval. The environmental impact assessment procedure is detailed in Governmental
Decision (GD) No. 445/2009, as described below.
1) ESIA Legislation
The Romanian EIA procedure is enacted by GD No.445/2009 on the assessment of the effects of certain public and
private projects on the environment, which transposes the EU Directive 85/337/EU. Also, GD No. 135/2010 approving
the methodology for the implementation of the environmental impact assessment for public and private projects is also
to be complied with as when implementing a project in Romania.7
This Ordinance also stipulates that the competent authority in charge of reviewing the EIA process is the Regional
Environmental Agency of the county where the project is located.
As an EU member State, Romania also must reflect the latest EU EIA Directive (2014/52/EU8) in its legislation, which
is in the process of enacting with a draft law being made.
The EIA procedure ensures that the environmental consequences of projects are identified and assessed before the
development consent is issued. The public can give its opinion and the results of the consultations are taken into
consideration in the development consent procedure of the project. The public has to be informed of the decision.
The national EIA procedure is developed in 3 stages: the screening, the scoping and the review stage. During the process,
a public consultation has also to be conducted. According to the interview with Hunedoara Environmental Protection
Agency, the total term for the acquisition of the EIA license would take at least 6 months.
The Romanian EIA procedure can be schematized as follows (Figure 9-18).
7
Source: European Commission on EU Environmental Implementation Review and Project Company
http://ec.europa.eu/environment/eir/country-reports/index2_en.html
8
EU EIA Directive, amending 2011/92/EU
9-36
Figure 9-18 Romanian EIA Procedure Applicable to This Project
(Source: prepared by the study team based on interview with Hunedoara County Environmental Protection Agency)
9-37
a) Screening
The project proponent shall send an application sheet to the County Authority for Environmental Protection, according
to the format presented in Annex 1 of the Ordinance No .135/2010. The authority after receiving the application analyses
the notification and determines whether the project proponent needs to provide further detailed information by making
a presentation of the project or not, or if the submission is rejected because it is not subject to EIA.
In the case of a thermal power plant development project, according to the Romanian legislation, thermal power plant
projects of more than 300MW require the submission and evaluation of an EIA report (Annex I of GD No.445/2009).
Thermal power plants of less than 300MW (Annex II) require a case-by-case examination to decide if an EIA is needed
or not. The criteria for this decision are listed in Annex III and include among others, the project characteristics, their
location and the evaluation of potential impacts of the project.
The screening stage decision is made available to the public for comments. The environmental authorities have the
possibility to re-examine the screening stage decision based on the public comments.
b) Scoping
The EIA report is based on a check list for the scoping stage, taking into consideration the framework content of the
EIA report as provided for by Annex IV of GD No.445/2009. The scoping is performed by a working group composed
of representatives of the project developer, the competent authorities for environmental protection and by one or more
certified experts.
The EIA report shall be drawn up by certified consultants, independent of the project developer.
c) EIA Review
During this stage a consultation period of minimum 20 days is foreseen, followed by a public debate. In order to analyze
the quality of the report, the competent authority for environmental protection considers the recommendations received
from the interested public.
d) Information Disclosure and Public Consultations
The public is involved in all the stages of the EIA procedure, i.e. in screening, in scoping and in review stage of the EIA
report.
The public information and participation in the EIA procedure is ensured by:
- Public announcement of the developer's application for a private or public project, submitted to the
environmental competent authority;
- Public announcement of the screening decision (made both by the environmental competent authority and the
developer);
- Public hearing of the project and of the EIA report;
- Public announcement of the decision to issue or not the environmental agreement.
After the submission of the EIA report by the developer to the environmental authorities, a public hearing is organized.
The EIA report is made available for public consultation for at least 20 days before the public consultation meeting.
The public consultation meeting is led by the competent environmental authority. All comments made during the public
hearing are recorded. The evaluation of these comments is the responsibility of the competent environmental authority.
After that, the developer is asked to answer to the public comments in a table format which is attached to the EIA report.
e) Final Decision
The review stage decision (issuing/rejecting the environmental agreement) is taken by the competent environmental
authority, based on the opinion expressed by the authorities within the review Committee formed by specialists, local
authorities, etc. after analyzing the EIA report, and on the affected public opinions/comments, including on the public
of the affected country, and the answers to them offered by the developer. The decision is made public for information.
The decision can be challenged before the competent court of law.
9-38
f) Monitoring & Control
The MOE and Sustainable Development has also established a list of companies authorized to perform ESIA-related
works in Romania such as the preparation of ESIA or the Environmental Management Plan (Measurement and
Monitoring Plan), etc. Monitoring data has to be periodically reported to the ANPM.
g) Typical EIA Report Content
According to GD No.445/2009 Annex IV, a typical EIA report should consider the potential environmental and social
impacts with a relevant baseline study and include the following items.
- Description of the Project (site location, size of the project and technical solutions)
- Description of the measures envisaged to avoid, reduce and remedy the significant
negative effects on the environment
- Data needed to identify and evaluate the main impacts of the project on the
environment
- General presentation of the main alternatives studied by the Implementing entity,
with an indication of the reasons of its choice, taking into account the impacts on the
environment
2) Other Legislation related to Environment, Health and Safety (EHS)
The national legislation related to Environment, Health and Safety applicable to this project are presented in the
following sections a) to e). A brief additional explanation in the light of the project and the applicable standards are also
presented where deemed relevant.
a) Air Quality and Pollution Prevention
Table 9-18 Main Air Quality-related Legislation

Related project
No. Legislation Date of Issue
operations/stages
Comparison of emissions
Law No.104/2011 Concerning the Quality
1 15 June 2011 originated and the impact on
of Ambient Air
air quality
Law No.278/2013 (Annex 5, Part 2) on Emission of air pollutants

2 7 January 2014
Integrated Control of Industrial Pollution during operation
Decision (EU) 2017/1442 establishing

Emission of air pollutants,
3 BAT conclusions for large combustion 31 July 2017
during operation
plants
I) Air Quality Standards
Air quality standards are established in the Law No.104/2011, as described in Table 9-19. The most commonly
monitored parameters across Romania’s air quality stations are SO2, NO2, NOX, PM10 and CO. Romanian air quality
standards, as transposed in Law No.104/2011, have already been fully harmonized with EU Directive 2008/50/EC
(Ambient Air Quality and Cleaner Air for Europe).
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Table 9-19 Air Quality Standards in Romania and EU
Romanian standards
Parameter Warning EU1
Limit Critical level
level
Hourly average
350 5001 - 350
( g/m3)
24-hour average
SO2 125 - - 125
( g/m3)
Yearly average
- - 20 -
( g/m3)
Hourly average
200 4002 - 200
( g/m3)
NO2
Yearly average
40 - - 40
( g/m3)
Yearly average
NOX - - 30 -
( g/m3)
24-hour average
50 - - 50
( g/m3)
PM10
Yearly average
- - - 40
( g/m3)
Max. 8-hour
CO 10 - - -
average (mg/m3)
* 1
and Measured in three consecutive hours in an entire region or sub-region with at least 100 m2, covered by
2
representative monitoring locations.

(Source: Prepared by the study team based on Law No. 104/2011 and Directive 2008/50/EC)
II) Air Emission Standards
Based on the interviews with Deva CFPP, all equipment employed in the new power plant will have to comply with the
current Romanian emission standards as described in Law No.273/2013 (Table 9-20). The interview with the
environmental authority has shown that the current Romanian emission standards transposed all values established in
the EU’s Integrated Pollution Prevention and Control (IPPC) Directive (2010/75/EU).
For newly constructed power plants, the EU Decision 2017/1442 also requires the application of BAT. The
Implementing entity will design the new power plant in accordance with this legislation too.
Table 9-20 GT (CCPP) Air Emission Limits for New Equipment in Romania and EU
GT CO (mg/m3) SO2 (mg/m3) NOx (mg/m3)
Romania EU Romania EU Romania EU
<50 MW - - - - 50 50
50-100MW 100 <5-30 - - 50* 15-40*
100-300MW 100 <5-30 - - 50 15-40
* For operation ratio > 70%, measured at 15% O2
**24-hour average
(Source: prepared by the study team based on Legea 278/2013 and EU Decision 2017/1442)
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b) Water Quality and Effluents
Table 9-21 Main Water Quality-related Legislation in Romania

Related project
operations/stages
Ordinance No.161/2006 regarding the Surface water quality
1 16 February 2006
classification of surface water quality regulation
Ordinance No.188/2002 for the approval of
norms regarding the discharging of wastewater Water effluent during
2 into the aquatic environment 20 March 2002 construction and
Presenting normative NTPA-001 and NTPA- operation
002
I) Water Bodies Classification
Surface water bodies in Romania are regularly monitored by the Environmental Protection Agencies. Water bodies are
classified into Class I to Class V categories according to ecological status determined by the monitoring results, as
follows (Ordinance No.161/2006).
- Class I quality - very good ecological status;
- Class II quality - good ecological status;
- Class III quality - moderate ecological status;
- Class IV quality - poor ecological status;
- Class V quality - very poor ecological status
Mures River was attributed a Class II water quality by the competent Environmental Protection Authority. Although the
concentrations in Table 9-22 are not the water quality standard values for Mures River, it can be considered as a good
representation of the biophysical and chemical characteristics of this water body.
Table 9-22 Characteristics of a Class II Quality Water Body

Water Quality Parameters Unit Water Quality Class II
pH - 6.5-8.5
Dissolved oxygen mg O2/L 7
-Epilimnion (top-most layer) mg O2/L 70-90
-Hipolimnion (deeper layer) mg O2/L 70-50
- Non-stratified waters mg O2/L 70-50
COD(c)-Cr mg O2/L 25
COD(c)-Mn mg O2/L 10
BOD5 mg O2/L 5
NH4+ mg/L 0.8
NO2- mg/L 0.03
NO3- mg/L 3
Total Nitrogen mg/L 7
PO43- mg/L 0.2
PO4- mg/L 0.4
Chlorophyll “a” g/L 50
Dry filtrate residue at 105°C mg/L 750
Cl- mg/L 50
SO42- mg/L 120
Ca2+ mg/L 100
Mg2+ mg/L 50
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Water Quality Parameters Unit Water Quality Class II
Cr g/L 50
Cu g/L 30
Zn g/L 200
As g/L 20
Ba mg/L 0.1
Se g/L 2
Co g/L 20
Pb g/L 10
Cd g/L 1
Fe2+; Fe3+ mg/L 0.5
Hg g/L 0.3
2+ 3+
Mn ; Mn mg/L 0.1
Ni g/L 25
Total Phenols g/L 5
Active anionic detergents g/L 200
Adsorbable Organic Halides g/L 50
(Source: Prepared by the study team based on the existing legislation)
II) Effluent Standards-discharged into Natural Receptors
NTPA-001/2002 establishes the limit concentration for industrial and urban waste water in the discharge into natural
receptors. The values presented in the Table below apply to all categories of effluents, including from sewage treatment
plants.
The main Parameters for the discharge into natural receptors are presented in the Table below. (Only the most occurring
and monitored parameters were given in the report.)
Table 9-23 Standards for Wastewater Discharge to Natural Receptor in Romania

Parameter Unit Romanian standards IFC standards
Temperature 35 °C after +3°C above ambient
°C
difference ( T) discharge water temperature
pH - 6.5-8.5 6-9
TSS mg/L 35.0 50
BOD5 mgO2/L 20 30
COD(c) mgO2/L 70 125
Total Nitrogen mg/L 10 10
Total phosphorus mg/L 1.0 2
Oil mg/L 5.0 10
As mg/L 0.1 0.5
Cd mg/L 0.2 0.1
Cu mg/L 0.1 0.5
Ni mg/L 0.5 -
Zn mg/L 0.5 1.0
Pb mg/L 0.2 0.5
Hg mg/L 0.05 0.005
Mn2+; Mn3+ mg/L Total Mn 1.0 -
Total coliform MNP/100mL 400 400
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Parameter Unit Romanian standards IFC standards
Cr mg/L Total 1.0 0.5
Mg2+ mg/L 100.0 -
Ca2+ mg/L 300.0 -
Fe2+; Fe3+ mg/L 5.0 1.0
SO42- mg/L 600.0 -
Cl- mg/L 500.0 -
(Source: Prepared by the study team based on NTPA-001 and IFC EHS Guidelines)
III) Effluent Standards-discharged to Sewage Treatment plants
NTPA-002/2002 establishes the limit concentration for wastewater discharge in the sewerage networks of the
localities and directly in the sewage treatment plants. The values presented in Table 9-24 below apply to all categories
of effluents, including from sewage treatment plants. Water from the power plants will be treated in site and sent to
the sewage company within the admissible limits below.
Table 9-24 Limit Concentration for Wastewater Discharge in the Sewerage Networks
Romanian
Parameter Unit Admissible
limit value
Temperature (°C) 40
pH - 6.5-8.5
TSS (mg/L) 350
BOD5 (mg O2/L) 300
COD(c) (mg O2/L) 500
NH4+ (mg/L) 30
Sulfides and hydrogen sulfide (S2-) (mg/L) 1.0
SO3 2- (mg/L) 2.0
SO4 2- (mg/L) 600.0
Water-frenzied phenols (C6H5OH) (mg/L) 30
Extractable substances with organic solvents (mg/L) 30.0
Petroleum products (mg/L) 5.0
PO4- (mg/L) 5.0
Biodegradable synthetic detergents (mg/L) 25
Total cyanide (CN-) (mg/L) 1.0
Free residual chlorine (Cl2) (mg/L) 0.5
Pb2+ (mg/L) 0.5
Cd2+ (mg/L) 0.3
Total Cr3+; Hexavalent Chromium (Cr6+) (mg/L) 1.5
Cr6+ (mg/L) 0.2
Cu2+ (mg/L) 0.2
Ni2+ (mg/L) 1.0
Zn2+ (mg/L) 1.0
Total Mn (mg/L) 2.0
(Source: prepared by the study team based on NTPA-002/2002 )
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c) Noise
Table 9-25 Main Legislation Setting Permissible Noise Levels in Romania

Related project
operations/stages
Ordinance No.152/558/1119/532/2008 13 February 2008 Noise during
approving the Guidelines on the Adoption of construction and
1 Limit Values operation
SR 10009/2017 Acoustics - Permissible limits
of the ambient noise level
When applied to thermal power plant projects, permissible noise levels in Romania are set according to area categories.
Noise shall not exceed 65dB during daytime and 55 dB during night time continuously equivalent noise level (A) within
the power plant site. The other noise level limits applicable in this project are shown in Table 9-26 below.
Table 9-26 Enviromental Noise Limits for Industrial Equipment

Romania IFC
Area Category
Daytime Nightime Daytime Nightime
Industrial Zone 65 55 70 1 70 1
Residential Area 55 - 55 45
Control room and other
45 40-45
permanent work places
Maximum permissible sound in
87 85 2
workplaces
1
One hour LAeq (dBA (decibel adjusted))
2
8 hours equivalent level
(Source: prepared by the study team based on GD No.321/2005 and IFC EHS Guidelines)
d) Waste Management
Table 9-27 Main Waste Management Legislation

No. Legislation Date of Issue Related project operations/stages
28 November 2011 Waste management during the
Law No.211/2011 on Waste
1 construction and operation of the
Management
plant project
e) Soil
Table 9-28 Main Soil-related Legislation in Romania

No. Legislation Date of Issue Related project operations/stages
Ordinance No.756/1997 for the 28 June 2011 Risk management of soil
approval of the Regulation regarding contamination during construction
1
environmental pollution assessment: and operation
Soil
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Table 9-29 Limit Values for Soil Contamination as Established in Order 756/1997 (2011 Update)
Limit values (mg/kg)
Pollutant
Warning level Intervention level
As 25 50
Cd 5 10
Co 100 250
Cu 250 5,600
Cr 300 600
Pb 250 1,000
Mn 2,000 4,000
Hg 4 10
Ni 200 500
SO42- 5,000 50,000
Zn 700 1,500
Total petroleum-derived
1,000 2,000
compounds
(Source: prepared by the study team based on Ordinance No.756/1997)
9-45
(5) Conclusions and Considerations regarding the Project Implementation
This preliminary environmental and social review of the current project has shown that the main environmental aspects
of the projects are as follows:
l The power plants will be equipped with modern CCPP complying with the latest EU-level air emission levels,
which will substantially reduce current atmospheric emission levels.
l The amount of water intake will be reduced by reusing three different intake cycle routes of existing equipment
because river water is used as cooling water.
l The power plant will be located within properties already owned by the operator and a private company without
the need for expropriation or resettlement, but negotiation may be needed for land acquisition.
l The power plant will be placed in a region with sparse habitation and agricultural land, limiting noise impacts on
neighborhood.
l There are no particular concerns regarding sensitive habitats or endangered species.
Considering the above, environmental impacts due to the project are not expected to be substantial. However, the
measurement and evaluation of the extent of each of the impacts presented in this report should be carefully developed
during the ESIA preparation phase, in accordance with Romanian legislation. Due consideration should be especially
given to the following topics regarding the prediction/evaluation of impacts in the construction and operation phases:
l Cumulative impacts of air pollutant emission: The existing power plant does not comply with the current Romanian
emission standards. The new equipment will be in compliance with the latest Romanian and European standards,
but it is important to determine the impacts of the whole power complex, by being aware of the decommissioning
program of the existing Units.
l Destination of waste during the construction phase: It is important to notice that large amounts of waste may be
generated due to the demolition of old buildings, cooling towers and equipment in the power plants for the project
to advance. This waste will have to be properly segregated and disposed of in authorized landfills or treatment
equipment.
l Soil quality survey: According to recent soil monitoring results, no soil contamination is observed in the project
site. Nonetheless, after determination of the project site location, a more focused soil quality study would be
recommended to determine that no particular intervention is needed, such as topsoil removing.
Romanian legislation also promulgates that stakeholder’s involvement should occur at the earliest phase of the project.
It is strongly encouraged that public participation is guaranteed and that those opinions are reflected into design,
construction and operation of the power plant.
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Chapter 10 Implementing Organization
(1) Complexul Energetic Hunedoara (CEH)
1) General Corporate Information
Table 10-1 CEH General Information

No Item Description
1 Company Name COMPLEXUL ENERGETIC HUNEDOARA S.A.
2 Legal Form Joint stock company
3 Date of Incorporation November 2012
4 Registered Office 2 Timisoara St., Petrosani, Hunedoara County, Romania
5 Registered Capital RON 349,821,330.- (fully paid in)
approx.EUR 74,967,603.88 (@ EUR 1 = RON 4.6663)
6 Main Activity Production of Energy
7 Shareholders MOE, holding 35,453,533 shares, with a value of RON 10.00 each,
representing 100% of the share capital

8 General Manager Mr. Samuel Dioane
9 Financial year Same with the calendar year
(Source: prepared by the study team based on a legal firm Nicolae’s report outsourced)
The CEH is one of the economic operators from the utilities domain from the MOE portfolio and one of the major
electricity producers in Romania which, with an installed capacity of 1,075 MW, provides 2% of the total national
electricity production, being the largest electricity producer in the northwest of Romania.
The Company was established based on the Government Decision no. 1023/2011, through the merger of
Electrocentrale Deva S.A. and Electrocentrale Paroseni S.A., in November 2012, being an integrated
energy-mining company, its main activity being the production of electric and thermal energy based on hard coal
from Jiu Valley
Next to electric energy production, the Electrocentrale Deva and Electrocentrale Paro eni branches from CEH S
are the sole producers that deliver thermal energy in a centralized system in Deva, Petro ani, Vulcan and Lupeni.
Moreover, the Electrocentrale Deva branch is also an operator of the Deva county public service heat supply,
while the Electrocentrale Paro eni branch ensures the termal agent for Petro ani, Vulcan and Lupeni from Valea
Jiului.
Thus, the CEH activity contains 2 large structures, namely: (1) electric and thermal energy production activity
through Deva Power Plant and Paro eni Power Plant and (2) mining activity by exploiting the Lupeni, Lonea,
Vulcan and Livezeni mines.
10-1
The Deva power plant currently has 4 energy groups of 210 MW each and an energy group of 235 MW on hard
coal, while Paro eni Power Plant owns an energy group of 150 MW on hard coal.
2) Financial Conditions of CEH
The following tables show CEH’s financial performances in the last three or four years. As you can see an
operating expense is more than double of an operating income in each year and there is no potential that an
operating income will increase sharply considering the aging existing equipment, environmental regulation
strengthened and the higher procurement cost of fuel coal.
10-2
3) Insolvency Procedure of CEH
The first request to initiate the insolvency procedure against CEH was filed on April 8th, 2015 by Romlink Invest
S.R.L., the application being filed in the Hunedoara Court. Further insolvency requests against CEH have also
been submitted in the same file by seventeen creditors. In this context, on 7th January 2016, the Hunedoara Court
decided to initiate the insolvency procedure of the CEH.
Subsequently, against the Hunedoara Court’s decision, the Company's syndicate appealed to the Alba Iulia Court
of Appeal. As a result, on 3rd May 2016, the court upheld the appeal and annulled the original sentence opening
the insolvency proceedings.
The second request for initiating the insolvency procedure was filed on 29th November.2016 by CEH itself, but
rejected by the Hunedoara Court on 7th February 2017, although the syndic judge showed that the Company's
debts far outweigh the payment possibilities of the CEH.
CEH appealed this decision to the Alba Iulia Court of Appeal on 9th March.2017, which is still continues.
10-4
(2) Organizational Structure for Project Implementation in Romania
1) Project Implementing Body
Currently, there are no project implementing body yet.
2) Operation and Maintenance Organization of Power Plant
For the operation and maintenance organization, as stated in Chapter 6 (1) c), we recommend organization headed
by a director with four departments, namely, operation, maintenance, environmental safety and administration.
Figure 10-1 Organizational structure for project implementation
Project Implementation Entity
Power Plant Organization

Director
Environment,
Operation Maintenance Administration
Health and Safety
Department Department Department
Department
(Source prepared by the study team)
10-5
(3) Evaluation of the Capacity of the Romanian Executing Body
1) Capacity to Repay Debt
The project implementing body is not decided yet. However, since buyer's credits will be composed after banks
assess the repayment capacity of the applicant, the institution who made the passing mark is deemed as bankable.
(For detail, please refer to Chapter 12).
2) Capacity of Equipment Operation and Maintenance
a) Maintenance
The skill level of local personnel regarding CFPP was confirmed to be favorably comparable to that of Japan,
since local personnel has long years of experience in maintaining CFPP.
However, the study team confirmed that the local personnel’s knowledge on the equipment and maintenance of
GT related equipment is insufficient. Due to the lack of knowledge on GT, we confirmed that training is
necessary to improve the skills for CCPP maintenance, especially on the GT.
b) Operation
The skill level of local personnel regarding CFPP was confirmed to be favorably comparable to that of Japan,
since local personnel operated semi-automatic CFPP for many years.
However, the study team confirmed that the local personnel’s knowledge on the equipment and operation of GT
related equipment is insufficient. Due to the lack of knowledge on GT, we confirmed that training is necessary to
improve skills for CCPP operation, especially on the GT.
10-6
Chapter 11 Technological Advantages of Japanese
Companies
(1) Participation Forms of assumed Japanese Companies
(Investment, Supply of Equipment and Materials, Operation
Management of Equipment, etc.)
1) Supply of Equipment
In this project, as equipment and materials are expected to be procured from Japan, starting with GT, ST, generator,
HRSG which are main equipment of CCPP, equipment such as turbine auxiliaries, generator auxiliaries, HRSG
auxiliary machines, electrical equipment, control Equipment, disaster prevention equipment, water treatment /
wastewater treatment equipment, etc. Commercial power generation equipment is a large public infrastructure,
and it is required to have high performance and high reliability for its economic efficiency and stable supply of
electric power. In addition, power generation equipment are combinations of comprehensive technologies such as
machinery, electricity and control, and in particular CCPP using the latest GT requires the latest technology
accumulated through long experience and achievement.
By supplying power generating equipment from Japanese manufacturers, highly efficient GT can be applied to the
project, and thus environmental impact of CO2, NOx and the like and fuel cost can be reduced. In addition, it can
be expected to benefit Romanian economy and society by reducing LCC by providing the latest GT which is the
unity of long experiences and performance, and by sharing know-how of CCPP’s operation and maintenance.
Transfer of on-site culture such as meeting delivery deadline and construction completion deadline can also be
expected by the training program. Through the above, we can contribute to the improvement of quality infrastructure
in Romania.
2) Collaboration with Third Country

Japanese company can be in partnership with the company of a third country. That is, collaborating with Chinese
company through delivery of HRSG equipment.
When HRSG equipment is exported from China to Romania, Chinese companies alone may not tune HRSG
equipment to comply with Romania’s standards. Meanwhile, if collaborated with Japanese companies, Japanese
companies can make HRSG equipment to comply with the EU standards which is a request from Romania, by
specifications and manufacturing control. Specifications and manufacturing control are Japanese companies’
specialty. Japanese companies can control to make HRSG equipment to meet Romanian requirement.
Through the above, it is possible for Japanese companies to collaborate with a third country and push the expansion
of infrastructure exportation of both countries. In importing HRSG, the risk of anti-dumping tax is considered, but
it is confirmed that the risk is low in the field survey.
3) Management of Equipment
The implementing entity who manage CCPP for this project is not decided yet in the current situation. However, it
is assumed that the operation of the power plant will be done by the Deva personnel. Deva personnel has no
experience of GT operation and it is confirmed that support is needed on O&M side regarding GT. In this regard,
11-1
we can support Deva personnel through consulting based on the experience of Japanese power generation companies
who has introduced, O&M of CCPP with the latest type GT throughout history. Also, in addition to the know-how
of O&M of power generation equipment, we can share our experience on the overall operation management
including the fuel supply, the power plant including the power transmission system, and the asset management of
the entire system. In addition, Japanese power generation equipment manufacturer will train Deva personnel on
operation and maintenance based on GT's technology at the project execution process and due to subsequent long-
term maintenance contract. These contributes to the efficient and smooth operation of the power plant by Deva
personnel.
(2) Advantages of Japanese Companies in Project Implementation

Japanese power generation equipment manufacturers have continued development efforts to improve performance
and reliability while competing with manufacturers in Europe and the United States. In addition, they have
constantly made efforts to reduce costs in fierce international competition. As a result, there is sufficient
competitiveness in terms of technology and price.
In terms of operation, maintenance, and operation management, technologies and experiences of Japanese power
generation equipment manufacturers, electric power companies, etc. contribute largely to support CCPP operation,
maintenance and operation management of this project.
(3) Strategy Necessary for Japanese Companies to Receive Orders

In order for Japanese companies -especially power generation equipment manufacturers that produce GT- to expand
its exportations, efforts to develop technologies are necessary to achieve continuous performance, output
improvement and high reliability against the foreign manufacturers. Accumulating the record of construction and
operation is also necessary. Compared to competing foreign manufacturers, the GT in Japan seems to have
superiority from the viewpoint of LCC, but competition in performance and output development in this field is
fierce and remarkable improvement is made in short period of time, so technology becomes outdated quickly. It is
also necessary for Japanese companies to further effort to maintain technical superiority so as to be adopted to this
project.
In order for Japanese companies to receive orders, it is imperative that Japanese manufacturers who supply
equipment reduces cost. Reduction in construction costs contributes to reduce the project’s initial investment and
accordingly the reduction of power generating tariffs. It would be advantageous for traditional contractors to appeal
their record at the time of severe bidding, since emerging-country companies that do not have such record. Company
records of installation would be a benefit to Japanese manufacturer, if it is included in the bidding condition.
11-2
Chapter 12 Financial Arrangements
(1) Funding Option
A fund-raising will be performed in accordance with the Arrangement on Officially Supported Export Credit
modified and effective as of 12th July 2018 and published by the Organization for Economic Co-operation and
Development (OECD). The following two (2) options of export loans are considered as means of the fund-raising
from Japan.
A buyer's credit (B/C) and a bank-to-bank loan (B/L) are direct loans respectively provided to a foreign importer
and a foreign financial institution for financing the import of Japanese machinery and equipment or the utilization
of Japanese technical services. A direct loan to an importer is called buyer's credit and to a financial institution is
called a B/L.
1) Buyer’s Credit
The purpose of this scheme is to support export from Japan and in principle only Japanese products in export
contracts are subject to loan.
B/C can also cover third country goods (intermediary goods) in the foreign currency portion of the EPC contract, in
case that
I) the EPC contractor is Japanese company, and
II) the export value from Japan, the value of goods/services that Japanese companies produce/render in abroad
or those combination is not less than 30% of the EPC contract amount.
In case of the limited recourse B/C, as a general rule only Japanese products in export contracts are subject to loan
with the concept that third country goods (intermediary goods) shall be financed by the Export Credit Agencies
(ECAs) of origin countries. However third country goods (intermediary goods) would be eligible only when certain
conditions are met.
Figure 12-1 Scheme of B/C
Loan (B/C)
JBIC *1 Importer in
NEXI *2 Private Banks Foreign Country
Buyer's Credit Installments
Insurance Repayment
Exports Direct
of Plant payment
*1 Japan Bank for International Cooperation: JBIC Japanese

*2 Nippon Export and Investment Insurance: NEXI Exporter
12-1
The terms and conditions of B/C such as the loan amount, interest rates, loan repayment periods and methods, risk
premium rates and etc., are determined based on the OECD Arrangement.
2) Bank Loan
A B/L is direct loan provided by JBIC and Japanese private banks covered by NEXI’s buyer’s credit insurance to a
foreign financial institution for financing the import of Japanese machinery and equipment or the utilization of
Japanese technical services.
A direct loan to a financial institution is called a B/L.
Figure 12-2 Scheme of B/L
Loan (B/L)
JBIC Finanncial Institution
NEXI Private Banks in Foreign Country
Buyer's Credit Installments
Insurance Repayment
Loan Repayment
Importer in
Foreign Country
Exports of Direct
Plant Payment
Japanese
Exporter
The terms and conditions of B/L are determined based on the OECD Arrangement, too.
JBIC provides export credit lines to Turkish 4 banks, namely Garanti bank, Deniz bank, Yapi Kredi and Is bank for
this scheme, which are eligible for those projects in Romania contributing to climate change mitigation.
12-2
(2) Feasibility of Fund-Raising
1) B/C
Three cases of borrowers, namely the Government of Romanian (the Ministry of Finance (MOF)), CEH and the
third organization which is supposed to take over only the power generation assets of CEH, are considered.
a) To Government of Romania
In June 2018 Japanese government has developed “the Export Strategy for Infrastructure Systems”, where the
government commits to the promotion of exporting Japanese high-efficiency thermal power generation technology
to especially emerging and developing countries that are obliged to depend continuously and heavily on fossil fuels,
from the viewpoint of the improvement of energy security and the contribution to low-carbon society and mitigation
of environmental burdens.
Romania is lined up as one of the candidates to which Japanese high-efficiency thermal power generation
technology could be exported.
In line with the above governmental policy, both JBIC and NEXI are very positive about accommodation of funds
to Romanian government for the high-efficiency thermal power generation project.
b) To CEH
They say that loans to CEH are not totally denied, however it is quite severe because of the situation of continuing
the deficit in the past four years (about 161 million euros in 2017) and no possibility of the revenue from electricity
sales exceeding the expenses.
This scheme is not realistic, unless repayment of large debts and relief measures from the government or county in
order to support CEH's survival are taken, although CEH survives while holding a huge debt overdraft.
c) To the Third Organization
When we paid a courtesy visit to the Governor of Hunedoara in July 2018, he clearly mentioned that CEO's power
generation assets would be handed over to the county, however till now the successor has not been decided yet.
Study team confirmed that JBIC/NEXI is the direction to tackle the provision of B/C to local governments. The
final decision shall be made after their due diligence on the financial situation of the county.
12-3
In the initial stage, there was a story that a new state-owned organization would be established and hold important
infrastructure assets including this project. In this case, since it is a new organization, there is no management record
and so it is judged that B/C cannot be received unless the payment guarantee issued by the government is available.
Thus, In order to receive B/C from JBIC / NEXI under the condition that the payment guarantee issued by the
government is not available, the existing organization whose financial condition is healthy enough to be accepted
by JBIC/NEXI needs to be the borrower.
2) B/L
JBIC has given three domestic banks in Turkey credit lines which are eligible for the projects in Romania.
Table 12-1 Credit Lines provided by JBIC to Turkish Banks (as of October 31, 2018)
No Turkish Bank Application Limit Credit Line Undisbursed
1 Garanti Bankasi March, 2019 US$500million US$500million
2 Denizbank February, 2019 US$200million US$200million
3 Yapi ve Kredi Bankasi November, 2019 US$350million US$201million
(Source: JBIC HP)
The project cost being considered, there is the possibility that the credit line provided to Garanti Bankasi will be the
B/L targeted, however their following negative opinions were received;
I) according to HQs, the branch office in Romania is in charge for all the projects in Romania
II) according to the person in charge of Bucharest branch, it is general for the domestic banks in Romania to
give loan not by itself but as the syndicate loan, and the project cost is relatively huge being compared with
the total asset of Garanti Romanian branch of about EUR 2.5 billion.
According to JBIC, it is possible to make similar agreements for the allocation of credit lines with the domestic
banks in Romani, however because of the following reasons
I) it will takes much time, first of all, and
II) even if the agreement between JBIC and Romanian banks were made, the issue raised by the person in
Garanti Bucharest branch still remains,
it is unlikely to realize the project under B/L scheme.
12-4
(3) Conclusion
Since the magnitude of the project cost is relatively huger than the asset size of the domestic banks in Romania, B/C
provided by JBIC/NEXI shall be considered rather than B/L.
In this case, as before-mentioned B/C provided by JBIC/NEXI is available, only if the borrower is
I) the government, or any organization with the condition that the payment guarantee issued by the government
is available, or
II) the existing organization whose financial condition is healthy enough to be accepted by JBIC/NEXI.
Thus, either the above I) or II) shall be pursued.
12-5
Chapter 13 Action Plan for Project Implementation and
Challenges
(1) Effort toward Implementation of the Project
1) Progress implemented by the Authorities concerned
Considering the diversification in electricity generation equipment, the availability of domestic natural resources
and environmental friendly equipment, the MOE has the plan to install most advanced natural gas fired combined
cycle power plant within the Deva CFPP site, which shall be designed to operate with a required load flexibly by
the national grid over the year.
On 27th February 2018, ITOCHU Corporation and others made a presentation on the most advanced natural gas
fired combined cycle power plant in front of MOE and CEH. Then the Undersecretary of the MOE expressed the
intention to implement the feasibility study on the project upon making the agreement with Japanese company.
Thus, the Memorandum of Understanding was made on 11th May 2018 among MOE, CEH and ITOCHU
Corporation for ITOCHU’s preparation of the study on the new high efficiency 350 MW class generation equipment.
13-1
(2) Presence or Absence of Legal and Financial Constrains
1) Practical Aspects
a) Implementing Organization
As so mentioned in Chapter 10, CEH is under insolvency process and it is necessary to establish the other
implementing organization of the project.
During the presentation held on 27th February 2018 referred in the previous section, the MOE informed that a new
state-owned enterprise would be established and implement all the national important infrastructure projects
including this one.
The study team paid a courtesy visit to the governor and the vice governor of Hunedoara county on 25th July 2018
and was informed by the governor that the county would succeed CEH’s power generating equipment and
implement this project too.
Later, the study team was informed by the local partner of this project on 26th September 2018 that CEH’s
generating equipment would be split from CEH and transferred to either Hunedoara county or state-owned
ROMGAZ.
Since then the study team has requested the outsourced Nicolae legal firm to check and report the situation time to
time, however so far not received a clear picture yet.
There are two hurdles, namely licensing procedure and financial arrangement to implement the project, however it
is not the implementing organization established until those two issues would be faced.
b) Licensing Procedure
The following key permits are required for the construction of a new power generating equipment.
I) Urbanism Certificate
The urbanism certificate represents an information document issued by the local administration, setting the legal,
economical and technical regime applicable to the location of the envisaged construction works, the urbanism
indicators to be observed, as well as the list of the prior approvals to be obtained by the applicant in order to obtain
the building permit. Such prior approvals generally relates to the locations for which a specific regime has been
13-2
imposed by law (i.e., archaeological or historical sites, protected natural areas, military constructions neighborhood
areas, existence of telecommunication, electrical or gas networks, etc.).
There is no restriction on application time for the urbanism certificate, provided that the local municipality should
issue this certificate within 30 days from the application date.
The urbanism certificate includes a list of all legal permits and approvals necessary for the issuance of the
construction permit. The validity of such certificate is established by the issuing authority and it is mentioned therein
(between 6 and 24 months)
II) Construction Permit
The following permits are necessary to start the construction.
Table 13-1 Major List of Permits and Approvals required

Permit/Approval Applied to
1 Zonal Urbanism Plan/ Building Permit Local Administration
2 Establishment Authorization ANRE
3 Environmental and Social Impact Assessment Local Administration
4 Grid Connection Transelectrica/ANRE
5 Aviation Easement Civil Aviation Authority
6 Approval by Neighbouring Owners Neighbouring Owners
7 Electromagnetic Interference National Communication Authority
8 Waters Endorsement National Water Administration
9 Emplacement Endorsement State Natural Gas System Operator (Transgaz)
10 Endorsement Agricultural Minister and Rural Development
11 Endorsement for Land Plots Administration of Land Improvement
III) ESIA
According to the information obtained, it takes at least six months after submission of the official application to
clear ESIA procedure in Romania, which is the critical path for obtaining the construction permit. In addition, the
funding provided by JBIC/NEXI being expected for the implementation of the project, the further study shall be
made by the international environmental advisor hired by JBIC/NEXI.
The following shows the ESIA procedure in Romania.
13-3
Figure 13-1 ESIA Procedure
Screening Form
Judgement NO ESIA Procedure

if ESIA necessary not necessary
Yes
Application Draft
Public Hearing
Decision made by
Local Administration
Objection
Public
Announcement
No Objection
ESIA done
13-4
2) Financial Aspects
The study team continued to examine the method of financial arrangement confirming the following matters with
the organizations concerned and a legal firm.
I) The Implementing Organization
II) The Borrower MOF, MOE, CEH or the Third Party
III) Loans collateralized by CO2 tax levied
The study team obtained the following comments through the meetings with JBIC/NEXI.
i) General
In case the government be a borrower, it is first confirmed if the entity has the right to borrow external debt.
Usually, the borrowable entities are either the MOF or the central bank. The other ministries or agencies
other than those cannot be borrowers without their approval as the budget control does not work. Therefore,
if the MOE be a borrower, it is necessary to secure MOF’s prior consent.
It is not the case if there stipulates in the law that the MOF guarantees to bear any foreign debts, which shall
be verified.
ii) Individual Borrower
Table13-2 JBIC’s Comment on Individual Borrower

Borrower JBIC’s Comment
MOF or with MOF’s
1 Lendable
Payment Guarantee
Almost impossible to lend money
CEH without MOF’s
2 It is lendable if the government supports CEH’s survival and assures
Payment Guarantee)
CEH’s repayment, which seems to be distant.
JBIC can lend money to those local administrations whose financial
3 Hunedoara County
conditions are health.
Private Company
4 Lendable
(Financially Health)
As so-mentioned in Chapter 12, the following conditions are must to receive the loan provided by JBIC/NEXI:
I) The MOF or the central bank guarantees the repayment of the borrower, or
II) The borrower shall be the existing organization whose financial condition is healthy enough to be accepted
by JBIC/NEXI.
13-5
(3) Strategic Significance
1) Life Cycle Cost

Although it is also described in Chapter 2, with the accession to the EU, existing thermal power plants need to
comply with EU environmental regulations. CFPP occupying more than half of the thermal power plants in
Romania do not have sufficient environmental equipment. In addition, due to the progress of aging, it is under
consideration that repowering of gas-combined thermal power with low environmental impact, large-scale
renovation of coal boiler, introduction of environmental equipment, and abolition of CFPP are under
consideration.
For industrial GT adopted in this FS, the study team recommends highly reliable GT with abundant cumulative
operation record. By introducing highly reliable and highly efficient CCPP, low LCC can be achieved. Moreover,
by replacing the old power plant, it can contribute to the reduction of environmental impact including CO2.
2) Capacity Building of Human Resource

a) GT Training
As mentioned in chapter 10, it has been confirmed through field survey that staff of the Deva CFPP has
operation and maintenance knowledge on equipment related to CFPP (ST, BOP, etc.).
Meanwhile, the study team confirmed that knowledge is lacking for GT, which is the main machine of CCPP,
which will be operated for the first time as a member of the Deva CFPP. In addition, the study team has
confirmed that there are training needs on operation and maintenance of GT equipment from staff of the Deva
CFPP.
Therefore, from the viewpoint of training human resources, operation and maintenance training of GT
equipment will be mainly described below.
Operation and Maintenance Training Provided by GT Manufacturer

The features of operation and maintenance provided by GT manufacturer are shown in Table 13-3.
Training will be held on the desk base, and the contents are general matters concerning equipment. It is mainly
carried out before the COD of CCPP.
Table13-3 Features of O&M Training provided by GT Manufacturer

Item Contents
Training form on the desk base
Training content general matters concerning equipment
Implementation period before the COD of CCPP
Operation and Maintenance Training Provided by Power Generation Company

Table 13-4 shows the features of operation and maintenance training provided by electric power companies.
Considering actual operation, practical training is also taken into consideration in training as well as desk.
In addition to the general content, the content also includes specific content based on equipment operation.
13-6
Implementation period is included before COD of CCPP, also after COD, and features are different from
training provided by GT manufacturer.
Table 13-4 Features of O&M Training Provided by Power Generation Company

Item Contents
Training form on the desk and practical training
Training content general matters concerning equipment +
specific content
Implementation period Before COD + After COD
The above two training (provided by GT manufacturer / provided by power generation company) is a
mutually complementary role training. Therefore, by introducing both training, the study team believe that
it will be possible to improve the operability of CCPP and foster human resources supporting this
improvement. From the above, the study team recommend to introduce both training in this project.
13-7
(4) Action Plan and Challenges
1) Site Selection and Specification of the Plant
a) Site Selection
The MOE and CEH presented three places in the Deva CFPP as the candidate of a new power generating equipment.
The study team will explain the reasons shown in the table below and will appeal the selection of the third plan to
MOE and CEH.
Table 13-3 Comparison among Candidates of Site

Plan Plan 1 Plan 2 Plan 3
Consideration Empty Lots in Units 1&2 Unused Coal Storage Yard Beside Unit 6
Cost Demolition Distance from existing Land Acquisition
Increase equipment
Environment Soil contamination Soil contamination
Asbestos influence
Operation Inconvenience in O&M
Construction Large scale demolition Soil remediation Land Acquisition
Period Soil remediation Common equipment
installation
Safety Insufficient earthquake
residence
Impact on operating
units
Evaluation Not recommendable Not recommendable Best
b) Specification of the Plant
The following matters are required for the new power plant.
i) Meeting the demand
ii) Diversification of power generation type
iii) Utilization of the natural resources
iv) Environmentally friendly
v) Grid stability
vi) Flexibility in ancillary service
vii) Most advanced technology
13-8
Thus, 350MW class gas fired CCPP has been selected.
2) Implementing Organization and Financial Arrangements
It is totally up to the judgment of Romania side to decide which organization will implement the project and how to
procure the finance for. The study team will continue to provide the relevant organizations in Romania, mainly
MOE, with the necessary and appropriate information, while paying close attention to the project.
3) EPC Contract
It is accepted legally in Romania to select the EPC contractor through direct negotiation, which however is not
practical as it requires a process to obtain the approvals by the related organizations in EU. Therefore, it is judged
that the EPC contractor will be selected through the international bidding process.
In general, the following shows the selection process of the EPC contractor.
13-9
Figure 13-2 EPC Contract Procedure
Draft of
Tender Document
Revised Draft of
Tender Document
Not Approved
reveiewed
by ANAP *
Approved
Tender Announcement
Tender Submission
Tender Evaluation Report
Revised Tender Evaluation

Report
Not Approved
Tender Report
reviewed
Approved
EPC Contract
* National Public Procurement Agency: ANAP
13-10
4) Conclusion
The challenges for implementing the project are summarized in the following two points.
i) Implementing Organization be selected

It is not the implementing organization established until the licensing procedure and financial arrangement
would be faced
ii) Financial Arrangements
The MOF would not issue guarantee for the repayment of external debt for implementation of the project.
The export credit provided by JBIC/NEXI is not available to neither MOE nor CEH.
In light of the necessity of main power supply, district heat system and ancillary service in national power grid in
the region, it is necessary to renew the generating equipment in Deva CFPP. It is considered as the most suitable to
construct a state-of-the-art natural gas-fired combined cycle power plant, taking into account the diversification of
the type of power generation, domestic natural resources, environmentally friendly, and the flexible operation
required by the national grid system throughout the year. Under such the circumstances, the organizations concerned,
mainly the MOE, are expected to take urgently the necessary steps action to realize the project.
13-11

Feasibility Study On Northern Combined Cycle Power Plant Project in Romania

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Feasibility Study On Northern Combined Cycle Power Plant Project in Romania

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FY2018 Study on Business Opportunity of High-quality Energy

Feasibility Study on the necessary of Individual Infrastructure

improvement etc. for realizing the Action Plan

Northern Combined Cycle Power Plant Project in Romania

The Ministry of Economy, Trade and Industry

The Kansai Electric Power Company, Inc.

(Source: prepared by the study team)

Abbreviation Full Name

Chapter 1 Background and Necessity of the Project

Chapter 2 Overview of the Host Country and Sector

Chapter 3 Study on the Power Plant

Chapter 4 Conditions of Land and Climate

Chapter 5 Basic Design of the Power Plant Equipment

Chapter 6 Project Implementation and O&M Organization

Chapter 7 Project Plan

Chapter 8 Economic and Financial Analysis

Chapter 9 Evaluation of Environmental and Social Impacts

Chapter 10 Implementing Organization

Chapter 11 Technological Advantages of Japanese Companies

Chapter 12 Financial Arrangements

Chapter 13 Action Plan for Project Implementation and Challenges

1) Background of the Project

Deva coal-fired power plant has the following problems.

Given the current situation, it is imperative to renew the aged facilities.

1) Basic Policy of Project Content Determination

a) Study of Project Contents and Technical Aspects

2) Conceptual Design and Construction of Applicable Equipment

Table 1 Scope of Implementation of this Project

Chemical composition vol. %

2) Project Construction Cost

Table 2 Estimation of the CCPP to be newly constructed

Table 3 Outline of Each Scenario

Table 7 Results of Economic and Financial Analysis

1) Issues on Buyer's Credit Request

2) Feasibility on Buyer's Credit Request / Implementation

The map showing the project site location is as below.

Figure 1 Map showing the Project Site Location

(Source: prepared by the study team)

Figure 1-1 Site Location Map

(Source: prepared by the study team)

Deva CFPP consists of

Figure 1-2 Appearance of Deva CFPP

(Source: CEH Home Page (HP) http://www.cenhd.ro/index.php/about-

(Source: EURACOAL HP https://euracoal.eu/info/country-profiles/romania/)

5) District Heat System

Table 1-2 Regulatory Value of each Pollutant

2) Necessity of the Project

Deva CFPP has the following serious situations;

Once again, following is the problem of the Deva CFPP;

3) Objectives of the Investment

The following issues are mainly focused for the investment:

1) Electricity & Heat Generation

Figure 1-4 Electricity Generation of Deva CFPP

(Source: provided by CEH)

Figure 1-5 Heat Generation of Deva CFPP

(Source: provided by CEH)

Figure 1-6 Monthly Electricity Generation of Deva CFPP in 2017

60,000 55,574 53,585 54,606 57,252

(Source: provided by CEH)

Field survey * * ***