The Romanian Government has allocated RON 350 million for the safe closure of the mines in the Jiu Valley. This aid is part of a massive support package, totalling nearly RON 4 billion, approved by the European Commission to bring coal mining in the Lonea, Lupeni, Livezeni, and Vulcan basins to a definitive but safe end.

The decision is part of a state aid scheme authorized by the European Commission, under which Romania has committed to permanently closing uncompetitive coal mines, and the structure of the expenditures is strictly regulated. The largest share, approximately 80% of the budget, is allocated to underground safety works. Specifically, RON 278.9 million will fund operations to seal off mine tunnels and manage gas emissions—mandatory measures to prevent post-closure geological risks.

For the environmental component, the government has allocated RON 60 million. The funds are divided between the rehabilitation of former mine infrastructure (RON 35 million) and the reclamation of degraded land (RON 25 million), in accordance with European environmental standards for decommissioned industrial sites.

Regarding the social impact, the decision allocates RON 10 million for severance payments to employees who are to be laid off in 2026, and RON 1 million to fund their retraining and professional reconversion programs.

 

Subsequent budget appropriations

The government states that the sum of RON 350 million will only partially cover the funding requirements for 2026. The remaining funds will be provided through subsequent budget appropriations, subject to available resources. Overall, total state aid for the 2023–2032 period amounts to RON 3.93 billion, provided in the form of non-repayable grants to ensure the phased elimination of coal from the national energy mix.

 

The mining lamps are going out

The Lonea and Lupeni coal mines in the Jiu Valley are set to close by the end of this year, in accordance with legislation on the decarbonization of the national energy system and Romania’s commitment in this regard under the National Recovery and Resilience Plan (NRRP).

The deadline is set forth in Emergency Ordinance No. 108/2022 on the decarbonization of the energy sector, approved by Law No. 334/2022, and in European Commission Decision No. 7896/2024, which approved the granting of total state aid of nearly RON 4 billion for Complexul Energetic Valea Jiului through 2032, specifically for securing the mines.

The other two mines in the Jiu Valley, Livezeni and Vulcan, must be secured, remediated, and closed by December 31, 2032, and Unit 4 of the 150 MW Paroseni thermal power plant must remain in operation to neutralize the coal from the mines until the end of 2030, according to Government Emergency Ordinance No. 108/2022.

In 2025, funding of approximately RON 606.7 million was allocated for the closure of the mines in the Jiu Valley. The Petrila Mine, the oldest mine in the Jiu Valley and also the deepest in Europe, as it was located nearly one kilometre underground, was closed in 2015.

 

Coal, the largest share of global electricity production in 2024

Globally, coal continues to account for the largest share of global electricity generation, at nearly 33%. Much of this demand comes from rapidly industrializing economies, where coal remains relatively cheap and widely available. Countries in Asia, particularly China and India, still rely heavily on coal to meet their growing electricity needs, according to visualcapitalist.com.

According to the ‘Boom and Bust’ study by Global Energy Monitor, based on data from the Global Coal Plant Tracker, 44.1 GW of coal-fired power capacity came online in 2024, while 25.2 GW was retired in 2024, resulting in a net increase of 18.8 GW. However, the capacity brought online was nearly 30 GW below the annual average for the 2004–2024 period (72 GW)—a sign of the continuing slowdown in global coal-fired power plant construction.

 

Renewable energy sources surpassed coal in 2025

This trend continued into 2025, the year that marked the first time renewable energy sources ranked first, ahead of coal, among sources of electricity generation.

According to the energy expert group at the Ember think tank, solar and wind power together met approximately 99% of the new growth in global electricity demand last year.

This milestone reflects years of investment in clean energy and signals a structural shift in the global energy system. It also shows that renewable technologies are now expanding fast enough to compete with traditional fossil fuels.