The rate of digitalization depends on several factors, such as the degree of involvement of local authorities, access to finance, and the rate of technology adoption in rural areas, including the development of the necessary digital skills.

Thus, more than 140 municipalities in Romania are implementing more than 220 smart village initiatives, including schools with distance education systems, digitalized town halls, public transport, and waste collection.

After the first smart city projects appeared in 2016, the transition to smart communities covered several areas of the country. Currently, these projects are increasingly common in rural areas, given that the concept of smart villages has gained momentum in Europe in recent years, and Romania has a major potential. Advances in digital infrastructure and increased access to technology, with almost seven out of ten rural households connected to the internet, have contributed to this development.

The smart village projects are those of schools – distance education systems, digital libraries, and adaptive educational programs based on artificial intelligence (AI); local administration – public services accessible online, paying taxes online, digitalizing the relationship with citizens and companies, allocating administrative resources based on data analysis, public alert systems in case of emergency; infrastructure – smart public lighting with efficient energy consumption, waste collection based on sensor data, public transport integrated with other forms of mobility (alternative transport) or smart agriculture – monitoring systems with drones or sensors, integration of agricultural production with that of alternative energy on the same land.

The small size of the communes can be an advantage in the implementation of intelligent solutions, but at the same time, there is a higher reluctance among the rural population towards digitalization. However, smaller communities can benefit from greater agility in technology implementation and create close ties between residents to support smart village projects.

“There is no technology limit that a locality must reach to be considered smart. Transforming a village into a smart village is about how technology is deployed and integrated to meet strategic goals and community needs. Being smart isn’t just about technology, it’s also about using it intelligently to improve efficiency, sustainability, and the quality of life. It is also about citizens’ digital skills”, said Eduard Dumitrascu, President of ARSC.

Although Romania’s National Recovery and Resilience Plan (PNRR) does not have a budget line dedicated to the “Smart Village” concept, many of its components align directly with the domains that are part of what a “smart village” project means. In addition to PNRR funds, Romania also has at its disposal the cohesion funds, in the current financial year, where they are almost 30 billion euros. This money is much more clearly distributed, in certain areas, including the Regional Operational Program managed by the 8 Regional Development Agencies.

At the same time, ARSC launched the Smart Finance financing service, through which local authorities can obtain European and government funds for digitalizing and modernizing localities. Through this service, local authorities have access to a full range of services, from identifying funding sources to post-implementation technical support in their communities.

The modernization of water and sewage infrastructure, the improvement of waste management, the transition to renewable energy sources, or the digitalization of public services are just a few directions through which non-reimbursable funds can be attracted. As a result, local communities can benefit from multiple funding opportunities to develop such projects, bringing them into the digital age, and making them more resilient, sustainable, and ultimately smarter.