Romania: Distribution network modernization loan to Electrica, SEE Energy News
CEO of Electrica Group Corina Popescu said that the company is actively pursuing options for diversifying its financing sources in view of the business development opportunities and of the ambitious investment plan. The European Investment Bank (EIB) agreed on a new 120 million euros loan to Distributie Energie Electrica Romania (DEER), the electricity distribution subsidiary of the Electrica Group.
The first-ever EIB financing for DEER will support upgrades and modernization of the electricity dis-tribution network in the country, including upgrading and constructing new power lines, constructing and refurbishing substations and installing components for network automation across Romania.
In the distribution segment, Electrica Group is committed to unlocking investments that improve operational performance, enhance service quality and optimize the costs to the final consumer, paving the way for a smarter grid across Romania. The first 120 million euros loan of a 210 million euros facility agreed with the Europe-an Investment Bank will help Electrica to better cater the energy needs of our 3.8 million customers in the years ahead and support green transition in Romania.
The new EIB loan will finance up to 75 % of eligible investment identified by DEER. This is above the normal EIB 50 % financing limit and reflects enhanced engagement in regions benefiting from the Modernization Fund under the EIB’s Energy Transition Package.
The new investment will modernise the electricity distribution, reduce electricity losses and improve overall network reliability in Prahova, Dambovita, Buzau, Braila, Galati, Vrancea, Brasov, Mures, Covasna, Harghita, Sibiu, Alba, Cluj, Salaj, Maramures, Bistrita-Nasaud, Bihor and Satu Mare.
DEER serves more than 3.8 million consumers, both residential and industrial, in the regions of Northern Muntenia, Northern Transylvania and Southern Transylvania. It operates 198,988 kilometers of electric lines in 18 counties, covering just over 40 % of Romanian territory.