27 june 2017, Craiova, Romania

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1 27 june 2017, Craiova, Romania

2 Abstract: Energy has become a strategic factor in global politics, a vital component and a cost factor for economic development and the progress of society as a whole, generating a number of major concerns at a global level. Given the limitation of primary energy resources, in order to achieve sustainability in this area, energy needs to be produced, delivered and consumed more effectively than before.

3 In EU, the most abundant energy resource is coal. In this time of austerity and high unemployment, the EU has a coal-fueled future, a clean coal with modern technologies for the 21st century and currently used in Europe. The coal industry is large and mature and it has over a quarter of a million people in well paid jobs. The EU is developing an ambitious energy policy covering all energy sources, from fossil fuels (crude oil, gas and coal) to nuclear and renewable energy ( solar, wind, geothermal, hydroelectric, etc. ) in an attempt to trigger a new industrial revolution that will lead to a low energy economy and limiting climate change by ensuring that the energy we consume will be cleaner, safer, more competitive and sustainable.

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5 Over 90% of Romania s entire lignite reserve is located in the Oltenia area, which is why this area is given special attention in ensuring the coal resources of the country. Presentation of the Oltenia mining area.

6 GEOLOGICAL RESERVES In the mining perimeters concessioned in the Oltenia basin, the reserves of lignite, the territorial administration are distributed as follows: Gorj - 82%, Mehedinţi -10%, Vâlcea - 8%. The degree of resource/reserve insurance is over 40 years. Gorj Vâlcea Mehedinţi

7 In the first semester of 2017 at the mining Department of Oltenia Energy Complex from Tg-Jiu, it is estimated a production of approximate 10,7 million tons of coal representing 95,5 % of the production scheduled under Annual Exploitation Program of 11,2 million tons. Compared with the production achieved in the first half of 2016, of 8,79 million tons, the production achieved in the first semester of 2017 is higher by approximate 1,9 million tons of coal. For the year 2017, according to the requirements of the energy branches, a production of 21 million tons of coal was prepared according to the 2017 Annual Exploitation Program. At this time, analyzes are made to increase production to over 25 million ton. calorific power kcal/kg; ash %; total humidity %; sulfur content- 1,26 1,89%.

8 The lignite extraction activity in the Oltenia area takes place on the territory of three districts : Valcea (3 perimeters of exploitation), Mehedinti ( 1 perimeter of exploitation) and district Gorj in 11 surface mining perimeters ( 9 lignite quarries ), using extraction technologies in continuous flow with rotor excavators, high-capacity belt conveyors and dumping machines. The Quarries in Oltenia can provide a production of million tons of lignite per year, depending on market requirements. The lignite deposits in Oltenia consist of 21 coals layers of thickness and variable expansion. The thickness of the lignite layers varies from a few tens of centimeters to several meters in compact form or in the form of several coal beds, which make up the complex of a layer.

9 The variation in the achievement of the coal quality in each mining unit is found, ranging from 1657 kcal/kg (South Jilt Quarry) and 1921 kcal/kg (Rosiuta Quarry). At the level of the Oltenia Energy Company, at the mining department, the calorific value of 1807 Kcal/kg was achieved. TOTAL D.M. TG-JIU THE SITUATION OF ACHIEVING THE CUMULATIVE QUALITY 12 MONTHS 2016 (UNITATI MINIERE) 1807 CARIERA TISMANA CARIERA ROVINARI CARIERA PINOASA CARIERA JILŢ SUD CARIERA JILŢ NORD CARIERA PEŞTEANA CARIERA ROŞIA CARIERA ROŞIUŢA CARIERA LUPOAIA CARIERA HUSNICIOARA Puterea calorifică [Kcal/Kg]

10 The Berbesti Mining Exploitation Department,whichispartofS.CETGOVORAS.Ahas as main activity the extraction of lignite. The lignite extraction activity takes place in 3 mining perimeters: Panga, Berbesti Vest and Oltet, with a total of 958 employees. In 2016 at the Berbesti Mining Exploitation was a total production of 2,01 million tons of coal and 11 million cubic meters of soil. Compared to 20155, the production achieved in 2016 is higher by tons. In the period , the coal production exploited by the Berbesti Mining Exploitation Department had an upward trend, which is also a preliminary trend for The increase of tons of coal from 2014 to 2016 had the immediate effect of ensuring the autonomy of the operation of S. CET GOVORA S.A with coal only from the Berbesti mining basin.

11 Location of active, closed and in the process of closing exploitation perimeters in the carboniferous basin of the Jiu Valley PETRILA LONEA VULCAN PAROSENI LIVEZENI URICANI LUPENI Perimetre de exploatare CEH Directia Miniera Perimetre de exploatare cuprinse în programul de închidere pănă în anul 2018 Perimetre de exploatare inchise în perioada anterioară Perimetre miniere

12 In the S.CEH exploitation license, the Ministry of Mining provided for a production capacity of tons for the year 2017 and according to the General Exploitation Program the production capacity is tons with a recovery rate of 95.7% Calorific value of 3685 kcal / kg..

13 Energy market CE Oltenia ensures a safe, efficient energy production at European standards and competitive prices on markets and scholarships with the provision of system technological services in order to maintain the security of the National Energy System. CE Oltenia produce energie electrica si energie temica (in special pentru orasul Craiova) si vinde carbune tertilor. Dotare grupuri energetice Complexul Oltenia S CEO S.A are in dotare 11 blocuri energetice cu o putere instalata de 3240 MW din care: SE Rovinari 3 blocuri energetice de 330 MW pe lignit in condesatie; SE Turceni 4 blocuri energetice de 330 MW pe lignit in condesatie; SE Isalnita 2 blocuri energetice de 315 MW pe lignit in condesatie; SE Craiova II 2 blocuri energetice de 150MW /160Gcal pe lignit in cogenerare. In 2016 the CEO thermal power plants generated TWh at a unit cost of production of lei/mwh. In 2017, the CEO's thermal power plants planned a quantity of TWh, the expected amount of energy for the range.

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15 Ensuring 95% of lignite production in Romania, under conditions of efficiency and social responsibility towards future generations, CE Oltenia can provide over 35% of the electricity consumption in the National Energy System and can be a large producer in the European regional area. The role of coal in Oltenia must be highlighted - What happens when there is no wind and is drought? What happens when hydropower plants produce only very little energy, Cernavoda closes, because there is not enough Danube water and there are problems in cooling the reactors. If there is still winter, gas plants can no longer produce, because there is not enough natural gas. Thus, the only ones that can produce and which the national economy can rely on are the coal-fired power plants.

16 In Romania, electricity producers are divided according to the source of energy production, unlike the rest of the countries, where there is only a mix of sources for energy production.

17 CONCLUZII Oltenia is the only energy producer that has installed flue-gas desulphurization and evacuation installations in the dense slam of slag and ash resulting from the coal-firing process, investing hundreds of millions of euros. The Oltenia mining resources / reserves assurance degree for more than 40 years, increased energy efficiency through the energy group rehabilitation programs and the reduced negative environmental impact through the implemented projects are the guarantee of a safe, clean and clean lignite energy production Efficient - the engine for the development of a sustainable economy. By ensuring 90% of the lignite production in Romania, in terms of efficiency and social responsibility towards future generations, CE Oltenia can provide over 30% of the electricity consumption of NPS and can be a large producer in the European regional area.. Consideration has to be given to how the energy system has been able to respond to special situations in the last few years, given that in the future, without constant annual support, energy producers from classical sources for economic reasons will no longer Have the physical capacity to maintain the energy system's safety. It was demonstrated between December 2016 and January 2017 that the National Energy System is dependent on the availability of the TERMO energy blocks due to the lack of water and wind An unpredged national energy strategy, which makes meteorological conditions the determining factor. Applying restructuring, reorganization and efficiency measures should lead to: reducing production costs; reducing administration costs; The optiml use of the production capacities of society; upgrading and streamlining remaining production capacities; ensuring an increase in cash flow; maintaining the profitability threshold under control; increasing productivity in physical and value units.

18 For Romania, CE Oltenia is a kind of backbone of the National Energy System. Itcan give 2,000-3,000 MW power at -40⁰C, at + 40⁰C, on prolonged drought, day or night. It also has licenses for a quantity of coal that would allow for another years of operation. The development of uncontrolled renewable energy sources, their unpredictability and the major imbalances they introduce into the system, especially wind energy, which endanger the safety of the National Energy System. As a highly competitive energy source, coal provides real competition on the electricity market. Moreover, it is said - coal will remain very competitive, and its use will increase throughout the world. In some EU Member States, it will remain an absolutely indispensable backbone of the electricity and heat systems for many decades now. This is all the more so given the current EU border crises that are creating tensions in global politics. Coal will remain an indispensable backbone of electricity and heat systems in many Member States. Coal is one of the most reliable energy sources for Europe and without it there is no real European energy security.

19 It is worth mentioning that their podium is occupied by factors that are not technical-economic in nature. From the analysis carried out, in order to elaborate this work, it is said that their order is maintained in the case of the mining mines to date from Oltenia and Romania. As far as the electricity production of the European Union is concerned, lignite and coal have a percentage of about 30%.

20 Oltenia mining basins with mining perimeters Bazinul Berbeşti Vâlcea Bazinul Rovinari Bazinul Jilţ Bazinul Motru Bazinul Mehedinţi Quarries in Oltenia can provide a production of million tons of lignite per year, depending on the requirements of the markets.

21 Since the beginning of the mining activity, Oltenia has extracted over 1.13 billion tons of coal (over 920 million tons of lignite extracted from surface mining and over 216 million tons extracted from underground works) and has A tailings volume of more than 5.31 billion m3 for the production.

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