This represents 80% of the eligible expenses for seven more new investment projects in the electricity distribution network, projects whose estimated value nears RON250 million (excluding VAT).
“For the part of ineligible costs, according to the Methodology for setting distribution tariffs, for fixed means related to investments in distribution networks made with own funds within projects co-financed by European non-reimbursable funds, put into operation starting from 1 February 2021, an incentive is established in the amount of 2 percentage points above the approved regulated rate of return”, as per the report.
These 5 new projects complete the list of the 13 investment projects for which DEER attracted about EUR250 million through the Modernization Fund. Regarding the status of these 13 projects, four projects are in execution, seven projects are in the acquisition phase, and two projects are in preparation for acquisition, the report reads.
Thus, DEER has so far attracted about EUR450 million from the Modernization Fund, approximately 38% of the total financing already signed on the Modernization Fund, and has 12 more projects submitted.
“Through our Group strategy, we committed to improve the performance of the managed infrastructure and to accelerate the digital transformation of the business. This achievement represents another step towards our strategic goal of accessing as many non-reimbursable funds for investments as possible. We congratulate the DEER team for this success and encourage them to continue at the same pace”, said Alexandru Chirita, CEO of Electrica.
Three of the projects, totalling about EUR162 million, of which approximately EUR131 million are non-reimbursable funds, target the automation of the medium voltage network in the three DEER areas, in order to identify and isolate the faulty network area, with the objective of improving the quality parameters of the distributed electricity and the performance indicators of the distribution service, by increasing the continuity of the distribution service. The RED Automation projects will have an impact on the continuity indicators in the supply for the end-users and energy producers, in line with the report.
EL shares have gained 75% in the last 12 months, amid deals worth RON540 million, triggering a market value of RON5.5 billion. Electrica has the Romanian State as its largest shareholder, with a 48.8% ownership stake.