Modernising Electricity Distribution Network in Romania

The Ministry of Energy has signed a further 21 financing contracts under the Modernisation Fund, Key Programme 3 – Support for the extension and modernisation of the electricity distribution network. The total value of the projects is RON 3,214,137,593.33, equivalent to EUR 646,018,851.79 and a total amount of state aid granted from the Modernisation Fund of RON 2,081,721,527.33, equivalent to EUR 418,411,257.07.

The 21 new contracts have been signed with all the concessionaire electricity distributors. So far, the Romanian Ministry of Energy has secured, through the Modernisation Fund, the financing of 38 projects contributing substantially to the extension and modernisation of the electricity distribution network, for which the total amount of state aid amounts to RON 2,951,936,204.43, equivalent to EUR 593,318,232.96.

“Since the beginning of my mandate, we have focused on two main directions: accelerating investments in energy infrastructure and ensuring a quality service for all citizens. We have a motto in the Ministry of Energy team: speed up, speed up, speed up. Today we have taken a new and most ambitious step yet, signing contracts for investments worth more than RON 3.2 billion. This money is essential for Romania’s progress. The Modernisation Fund is one of the biggest development opportunities Romania has had in recent history, and our commitment is to make the most of it in the shortest possible time,” Energy Minister Sebastian Burduja said.

These investments from non-reimbursable funds are aimed at modernising electricity distribution networks and increasing their resilience in the context of climate change by moving overhead power lines underground; increasing the capacity of networks to absorb new prosumers and renewable energy generation capacity, a phenomenon supported by the Romanian Ministry of Energy; and digitising networks by introducing smart meters, with a focus on large urban communities.

The most important benefit is that all these investments worth billions are made from the Modernisation Fund, without putting pressure on the distribution tariff, therefore without increasing the bills to end-consumers. In addition, they ensure access to a high quality and reliable service for all consumers.

According to the Ministry of Energy, “with these investments, Romania is making the leap towards a new model of national energy system, the backbone for the Romania of the future. A 3D system: decarbonised, digitised, decentralised.”

The 21 contracts are aimed at financing projects submitted under the dedicated call by concessionaire electricity distribution operators as follows:

– Retele Electrice Dobrogea S.A. – project Increased Supply Security of L.20 KV Manasia, Ialomita County – total project value RON 53,781,934.38, non-reimbursable financing RON 33,048,991.38

– Distributie Energie Electrica S.A. – project Modernisation of electricity distribution networks, Rasinari commune, Sibiu County – total project value RON 43,407,784.38, non-reimbursable financing RON 27,578,633.69

– Delgaz Grid S.A. – project Modernisation and SCADA integration of transformer stations managed by Delgaz Grid – Phase 1 – total project value RON 253,563,295.07, non-reimbursable financing RON 165,690,664.56

– Delgaz Grid S.A. – project Modernisation and SCADA integration of transformer stations managed by Delgaz Grid – Phase 2 – total project value RON 263,441,093.24, non-reimbursable financing RON 172,787,772.60

– Retele Electrice Banat S.A. – project Modernisation works of the 20 kV Avicola Berzovia OHL by partially switching the MV network from OHL to UPL, transforming the overhead transformer substation into a concrete-encased substation and modernising the LV OHL network in Duleu, Remetea Poganis, Valea Mare, Bocsa – Binisului street – total project value RON 87,942,576.91, non-reimbursable financing RON 57,739,311.13

– Delgaz Grid S.A. – project Modernisation, rehabilitation and improvement of the voltage level in the low voltage networks managed by Delgaz Grid Phase 1 – total project value RON 331,256,663.32, non-reimbursable financing RON 211,856,760.22

– Distributie Energie Electrica S.A. – project Increased safety of the 110/20kV transformer station Sibiu Nord and 110kV loop closure between Sibiu Sud – Cisnadie – Dumbrava substations, Sibiu County – total project value RON 237,053,759.69, non-reimbursable financing RON 150,525,658.08

– E-Distributie Banat S.A. – project Modernisation of electricity networks in Aradul Nou, total project value RON 102,984,696.82 – non-reimbursable financing RON 67,401,987.34

– Distributie Energie Electrica S.A. – project Modernisation of 110kV electricity distribution network in Smardan-Barbosi-Filesti-Arcelor Mittal area and modernisation and SCADA integration of 110/20/6kV Filesti substation, Galati County – total project value RON 124,941,087.60, non-reimbursable financing RON 76,836,020.79

– Retele Electrice Muntenia S.A. – project Increased reliability of electricity supply to Balotesti, by upgrading the 20KV MV OHLs Balotesti, Radio Saftica, Saftica, Magura, Ghermanesti, Muntenia 1, Muntenia 2, Ana Aslan and new injections, Ilfov County – total project value RON 198,247,854.83, non-reimbursable financing RON 131,870,378.72

– Distributie Energie Electrica S.A. – project Implementation of the smart electricity metering system in the county capital cities of North Transylvania area: Cluj-Napoca, Oradea, Zalau, Baia-Mare – total project value RON 283,048,714.58, non-reimbursable financing RON 184,153,238.98

– Distributie Energie Electrica S.A. – project Implementation of the smart electricity metering system in the county capital cities of South Transylvania area: Brasov, Sibiu, Targu Mures, Alba Iulia and Miercurea Ciuc – total project value RON 274,244,957.75, non-reimbursable financing RON 178,295,015.33

– Distributie Energie Electrica S.A. – project Implementation of the smart electricity metering system in the county capital cities of North Muntenia area: Galati, Braila, Focsani, Ploiesti and Targoviste – total project value RON 243,551,475.56, non-reimbursable financing RON 158,122,227.68

– Retele Electrice Dobrogea S.A. – project Modernisation of the electricity distribution network to increase the capacity and safety of electricity supply to consumers in the localities of Frumusani, Vasilati, Galbinasi, Plataresti and Fundeni, Calarasi County – total project value RON 162.176.967,42, non-reimbursable financing RON 106,736,107.68

– Delgaz Grid S.A. – Project of Common Interest for the Modernisation of the electricity network – CARMEN (Carpathian Modernisation of Energy Network) Volume 1 – Modernisation of the 110 kV Siscani – Glavanesti – Barlad OHL – total project value RON 82,534,703.70, non-reimbursable financing RON 54,659,623.19

– Distributie Energie Oltenia S.A. – project Modernisation of the 110/20/10 kV Dabuleni transformer station, Dabuleni town, Dolj County in order to increase the safety in operation and electricity supply, total project value RON 77,407,217.92, non-reimbursable financing RON 50,365,689.39

– Distributie Energie Oltenia S.A. – project Modernisation and SCADA integration of the 110/20 kV Dragasani transformer station, Dragasani town, Valcea County in order to increase the safety in operation and electricity supply – total project value RON 71,006,850.45, non-reimbursable financing RON 46,247,992.21

– Distributie Energie Electrica S.A. – project Switching to 20kV in Moreni municipality and modernisation of 110/20/10kV Moreni transformer station, Dambovita County, total project value RON 116,378,090.99, non-reimbursable financing RON 74,134,508.74

– Distributie Energie Oltenia S.A. – project Extension of the low voltage electricity distribution network in the communes of Simian and Obarsia Closani and increased energy efficiency and quality of energy distributed to customers by upgrading transformer substations, low voltage network and connections related to the commune of Simian, Mehedinti County – total project value RON 57,966,571.79, non-reimbursable financing RON 37,685,806.44

– Distributie Energie Oltenia S.A – project Modernisation and SCADA introduction of the 110/20kV Rogojelu transformer station, Rovinari city, Gorj County in order to increase the safety in operation and electricity supply – total project value RON 91,410,389.23, non-reimbursable financing RON 59,048,967.73

– Retele Electrice Banat S.A. – project Modernisation of distribution networks in Geoagiu town, Geoagiu Bai and the localities: Aurel Vlaicu, Bozes, Cigmau, Homorod, Mermezeu-Valeni, Renghet, Poienari and Valeni – total project value RON 57,790,907.70, non-reimbursable financing RON 36,936,171.45.