Romania: Transelectrica’s investment plan failed

, SEE Energy News

According to the latest report of the Regulatory Authority (ANRE) at the end of the year electricity transmission system operator Transelectrica had reported only 21.3 million euros of investments made. The company had scheduled investments in transmission network in the amount of 52 million euros in 2019.

That is, Transelectrica made less than half, namely 40 %, of the investments envisaged through the investment plan. The situation is much better for distribution operators, controlled by Enel, CEZ, E.ON and Electrica. In most cases the plan was either realized in full or even exceeded. The lowest degree of achievement was registered at e-Distributie Banat (part of Enel), of 85.7 % (23.7 million euros planned, 20.3 million fulfilled), but Enel compensated the situation in Banat with that in the other network areas, where it exceeded the plan. Thus, at e-Distribution Muntenia the percentage of fulfillment was 110 % (43 million euros planned, 47.3 million fulfilled), and at e-Distribution Dobrogea where the percentage was almost 112 % – 91.1 million euros planned, 21.4 million fulfilled.

A similar situation is encountered at Electrica, where two of the distributions exceeded the plan, and one did not. Thus, at Transilvania Nord the percentage of fulfillment is 100.4 % (37 million euros planned, 37.3 million fulfilled), and in Transilvania Sud of 102.6 % (38.8 million euros planned, 39.8 million fulfilled). In Muntenia Nord the percentage is 97 % with 40.7 million euros planned and 37.5 million fulfilled.

In Oltenia CEZ exceeded the plan, with a percentage of 101.9 – 34.9 million euros planned and 35.5 million realized, and in Moldova E.ON was slightly below the plan, with a percentage of 98.5 – with 26.2 million euros realized out of 26.7 million planned.

According to ANRE report, both in transmission and distribution network, a large part of the installations currently in operation have a long service life. The asset base of operators is generally outdated, with a significant portion of assets older than 35 years. They are, for the most part, nearing the end of their operational life. For some of these assets, operational life may be extended, while others need to be replaced.

Only a small part of the total energy capacity has been rehabilitated or modernized in the last 20 years. This reveals a low level of investment programs in network refurbishment and modernization. High-voltage transmission lines put into operation after 2000 have a small share, on average less than 4 %, of the total length, and the medium and low voltage transmission lines put into operation after the year 2000 have a higher percentage of the total length – 12 % for medium and 2% for low-voltage network.

Regarding the situation with transformer stations belonging to Transelectrica, about 63 % were put into operation after 2000 (22,279 MVA of the total installed by 35,583 MVA).