The first ever European Investment Bank financing for DEER will support reinforcement and modernisation of the electricity distribution grid in the country, including upgrading and constructing new power lines, constructing and refurbishing of power substations and installing components for network automation across Romania.
The 15-year EUR120 million loan, the first part of EUR210 million EIB backing for energy infrastructure investment by DEER and related guarantee agreement, were signed in Bucharest by Corina Popescu, CEO of Electrica, Valentin Branescu, Acting CEO of DEER and respectively Christian Kettel-Thomsen, European Investment Bank Vice President, and witnessed by Romanian Energy Minister Virgil-Daniel Popescu.
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 Modernisation Fund under the EIB’s Energy Transition Package.
The new investment will modernise the electricity distribution, reduce power losses and improve overall network reliability in Prahova, Dambovița, Buzau, Braila, Galati, Vrancea, Brasov, Mures, Covasna, Harghita, Sibiu, Alba, Cluj, Salaj, Maramures, Bistrita-Nasaud, Bihor and Satu Mare.
Upgrading Electrica’s electricity distribution will allow the connection of more than 180,000 new customers and enable the long-term integration of renewable energy in Romania. Furthermore, the deployment of advanced meter will contribute to a more efficient network operation.
The new Electrica network investment backed by the EIB will increase provision of affordable reliable and modern energy (SDG 7), support inclusive and sustainable economic growth (SDG 8) and climate action (SDG 13).
The European Investment Bank has provided more than EUR1.2 billion for energy investment across Romania since 1991.