- The loan is aimed to upgrade electricity distribution networks, deploy smart meters and accelerate renewable energy connection across Romania
- New investment to connect more than 180,000 customers, increase network capacity and improve reliability and quality of electricity supply
The 15-year EUR 90 million EIB loan to Distribuie Energie Electrică Romania S.A. (DEER), the electricity distribution subsidiary of the Electrica Group, represents the second part of EUR 210 million EIB backing for EUR 300 million of new ambitious energy infrastructure investment by Electrica Group, reads a press release issued by the financial institution. The nationwide scheme will support reinforcement and modernisation of the electricity distribution grid in the country, including upgrading and constructing new power lines, constructing and refurbishing of power substations and installing components for network automation across Romania.
“The European Investment Bank is pleased to provide EUR 210 million to support Electrica’s EUR 300 million nationwide investment programme to increase use of renewable energy, improve network capacity and deliver long-term decarbonisation goals. The latest EUR 90 million financing agreed with Electrica reflects the rapid progress of the transformational initiative and shared commitment of the EIB and Electrica to unlock greater use of renewable energy”, said Christian Kettel-Thomsen, European Investment Bank Vice President, responsible for energy and lending operations in Romania.
“New high-impact nationwide investment by Electrica is benefiting customers and allows greater renewable energy use in the future. The latest European Investment Bank financing will allow Electrica to replace outdated assets, better cater the energy needs of our 3.8 million customers through rolling out advanced meters and accelerate Romania’s green transition”, said Corina Popescu, CEO of Electrica.
Upgrading electricity distribution across Romania
The EUR 300 million Electrica investment programme includes new investment in Prahova, Dâmbovița, Buzău, Brăila, Galați, Vrancea, Brașov, Mureș, Covasna, Harghita, Sibiu, Alba, Cluj, Sălaj, Maramureș, Bistrița-Năsăud, Bihor and Satu Mare to modernise the local electricity distribution, reduce power losses and improve overall network reliability.
The network expansion will allow the connection of more than 180,000 new customers and unlock greater use of renewable energy in Romania in the years ahead.
Investing in energy to support sustainable development in Romania
The new Electrica network investment backed by the EIB will increase provision of affordable reliable and modern energy (SDG 7), support inclusive and sustainable economic growth (SDG 8) and climate action (SDG 13).
The European Investment Bank has provided more than EUR 1.4 billion for energy investment across Romania since 1991.
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investments in order to contribute towards EU policy goals.
Electrica Group is a key player in the electricity distribution and supply market in Romania, as well as one of the most important players in the energy services sector. Electrica Group provides services to about 3.8 million users and has national coverage – with a coverage of 18 counties from three geographical areas for the distribution of electricity: Transilvania Nord, Transilvania Sud, Muntenia Nord, and across the country for the supply of electricity and for maintenance and energy services. As of July 2014, Electrica has become a company with private majority capital, listed on the Bucharest and London stock exchanges. Electrica is the only listed Romanian company in the field of electricity distribution and supply in Romania.