The European Investment Bank (EIB) is providing a EUR 200 million loan to Romanian energy distributor Delgaz Grid to modernize its electricity grid in northeastern Romania.

The financing is part of a EUR 630 million investment program by Delgaz Grid, which aims to improve the energy system serving more than 1.5 million households and businesses.

The planned works, to be completed by 2027, will adapt the grid to clean energy sources like solar energy. The project focuses on the modernization of high, medium, and low-voltage power lines, as well as on network automation and the implementation of smart meters. 

The planned modernizations will cover an electricity network of more than 80,000 km and advance a European project known as the Carpathian Modernized Energy Network (CARMEN). This project aims to improve the interconnection and interoperability of the electricity systems in Romania, Hungary, and Bulgaria by 2028.

Delgaz Grid, part of the German E.ON Group, operates a 25,800 km natural gas distribution network in 20 counties in northern and western Romania, as well as an 81,500 km electricity network in six counties in Moldova - Bacău, Botoșani, Iași, Neamț, Suceava and Vaslui.

“This initiative will increase energy efficiency, facilitate the integration of renewable energy sources, and stimulate economic growth in the region,” said Ioannis Tsakiris, Vice-President of the EIB. “Delgaz Grid’s digitalized infrastructure will become smarter and more resilient, significantly improving the distribution of energy that can supply millions of households for a year.”

“Our total investment of almost EUR 630 million is aimed at modernizing and digitizing the infrastructure,” said Volker Raffel, CEO of E.ON Romania, the parent company of Delgaz Grid. “Investments in networks generate economic growth for Romania. We are focused on the challenges generated by the unprecedented development of renewable energy production capacities, the increase in the number of prosumers and charging stations for electric vehicles. This agreement is essential to improve the quality of our services, operational efficiency, and the security of energy flows. […].”

(Photo: Nataliia Babinska/ Dreamstime)

simona@romania-insider.com