The Ministry of Economy and Sustainable Development will allocate direct grants as part of the call for proposals for modernization of the electricity distribution network from the National Recovery and Resilience Plan (NRRP) 2021-2026. The call was launched as part of the revitalization, construction, and digitalization of the energy system and related infrastructure for the decarbonization of the energy sector.
The co-financing rate amounts to 69% of the total eligible costs, with the maximum amount of non-repayable funds that can be allocated being slightly over 156.5 million euros. The total project value is nearly 285.7 million euros. The only eligible applicant within the call, in accordance with the legislation, is the electricity distribution system operator HEP ODS.
The statement from the Ministry said that the project will finance the modernization and digitalization of the electricity system, which will efficiently and stably accommodate the increasing amount of electricity from renewable sources. Furthermore, the project plans to invest in the modernization of power lines and related infrastructure within the Natura 2000 areas, the replacement of existing and construction of new sections of underwater cables in the distribution network for supplying islands, and the expansion of an advanced network in areas with development peculiarities.
Market research will also be conducted, involving regional and local authorities, to determine areas of interest for the project, such as islands and remote areas with a small number of users away from the current network.