$135m Japanese upgrade

Japan-based Itochu, Hitachi and Toshiba will upgrade unit four of the thermoelectric power station Paroseni (Valea Jiului) held by Termoelectrica, according to a protocol signed at the Industry Ministry. The project, chiefly aimed to boost the energy efficiency of the unit, is worth $135 million. The upgrade is scheduled for completion by June 2006, so that the unit will come to produce electrical power at costs below $30/MWh. The average production price for Termoelectrica’s power stations is about $39/MWh. The project will also make “an extraordinary social impact” given that it will create several hundred jobs in Valea Jiului for the duration of the upgrade works. As soon as the upgrade is completed, the programme will induce a decline in the number of jobs in the coal mining and washing, as well as in the energy-producing sector. ZF