EUR 57 Mn Non-reimbursable Funding for Development and Modernisation of Electrica’s Distribution Network

Electrica Group, through the operator Distributie Energie Electrica Romania (DEER), has attracted non-reimbursable European funding, through the Modernisation Fund, amounting to EUR 57 million. The amount represents 80% of the eligible expenditure for four investment projects in the electricity distribution network, whose total estimated value is around EUR 77 million.

“One of the strategic objectives for the next period, at the level of the Electrica Group’s distribution operator, is to substantially increase access to non-reimbursable funds for investment works. This is in line with the Group-wide strategy of maximising performance in managed infrastructure, as well as to streamline and digitally transform the business. I congratulate our colleagues for their efforts, and I am convinced that this is only the first step in a series of such initiatives,” Electrica CEO Alexandru Chirita said.

The proposed projects will be carried out mainly in the counties of Sibiu, Bihor and Maramureș, but some of the works will have an impact on all 18 counties in the DEER coverage area: Cluj, Bihor, Satu Mare, Maramures, Bistrita-Nasaud, Salaj, Alba, Brasov, Covasna, Harghita, Mures, Sibiu, Prahova, Buzau, Galati, Braila, Dambovita and Vrancea.

“It is a great achievement that we have managed, in our rather difficult investment approach, to be the beneficiary of four contracts for the modernisation and expansion of the capacity of electricity distribution networks, with funding sources attracted from the Modernisation Fund.

DEER has signed grant agreements for four major projects:

• 110/20kv Sibiu Vest substation. The investment aims to increase the reliability and capacity of the medium-voltage grid and increase the quality of the electricity distribution service;
• Upgrading of 110kV electricity distribution networks in the area of Centru-Aeroport-Iosia-Mecanica electric substations, in Oradea Municipality. As a result of the rapid development of the municipality, this investment provides users with continuity and reliability of electricity supply at high performance standards.
• Upgrading of overhead MV power lines fed from SIGHET substation: 20kV Sighet-Teceu OHL, 20kV Sighet-Costui OHL and 20kV Sighet-Radio Vad OHL. The main objectives of the project are to ensure the security of electricity supply to existing consumers and producers and to ensure the ability of all users to connect to the grid.
• Implementation of the Asset Data Management Subsystem – Phase II by collecting, processing, and validating technical and geo-referenced data related to overhead and underground electricity distribution networks at all voltage levels (HV, MV, LV) throughout the DEER coverage area.

This success is yet another proof that we, Distributie Energie Electrica Romania, through our specialists, make every effort to achieve the investment plan of over EUR 100 million per year. Improving the satisfaction of DEER’s nearly 4 million customers in 18 counties by providing a high-performance distribution service is our strategic goal. We will continue to invest responsibly in our electricity distribution networks, being very careful and focused on calibrating our investments very well, so that we can achieve what we set out to do, without putting too much demand on customers and without increasing their bills excessively,” said Mihaela Rodica Suciu, DEER General Manager.

Distributie Energie Electrica Romania has a committed investment plan of more than EUR 100 million per year.