Power supply and distribution group Electrica (BVB: EL), where the state is the largest owner with a stake of 49%, announced that its power distribution subsidiary DEER got a EUR 57 million grant under the EU’s Modernisation Fund, representing 80% of the eligible expenses for four investment projects in the electricity distribution network.

The total value of the four projects is EUR 76 mln, of which the non-refundable financing (grant) is EUR 57 mln.

Three of the projects will be carried out mainly in Sibiu, Bihor and Maramures counties, aiming at increasing the reliability and capacity of the medium and high voltage network, increasing the quality of the electricity distribution service, ensuring the safety of the electricity supply for existing users, as well as providing the possibility of connecting future consumers and producers.

The fourth project aims at digitizing the overhead and underground electricity distribution network, 118,505 km in all the 18 counties where DEER operates.

In Q1/2023, Electrica had revenues of RON 3.5 bln (EUR 700 mln), 7% more compared to the same period last year, while its losses more than halved to RON 67 mln (EUR 13.5 mln).

However, the company’s EBITDA was positive – RON 170 mln (EUR 34 mln) in Q1 this year, compared to a negative value of RON 51 mln (EUR 10 mln) in Q1/2022.

iulian@romania-insider.com

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