Romania assigns €418 million in grants for power distribution grid upgrades

Green Forum
Romania's Ministry of Energy has given the green light to €418.2 million in grants for the nation's regional power distribution system operators. These funds are allocated for grid expansion and modernization projects valued at a total of €645.7 million.

Developing electricity networks is pivotal for the energy transition and decarbonization efforts. However, this sector is notably lagging, primarily due to insufficient grid capacity and the absence of digitalized smart features. These limitations impede the deployment of renewable energy sources and storage solutions, thereby restricting the integration of electricity from intermittent and dispersed sources into the system.

Amidst a surge in photovoltaic installations driven by prosumers, Romania has earmarked a significant portion of its European funding for expanding and modernizing its power distribution network. The Ministry of Energy disclosed the signing of 21 contracts supporting investments totaling €646 million.

All six regional distribution system operators (DSOs) in the country—Delgaz Grid, Distribuţie Energie Oltenia, Distributie Energie Electrica Romania (DEER), Retele Electrice Muntenia, Retele Electrice Dobrogea, and Retele Electrice Banat—have been approved funds by the Ministry. Greece-based Public Power Corp. (PPC) took over the last three DSOs in 2023 from Enel. Previously known as E-Distribuţie Muntenia, E-Distribuţie Dobrogea, and E-Distributie Banat, respectively.

These six firms have collectively received €418.4 million in grants from the European Union's Modernisation Fund. The proposed investments encompass safety enhancements, monitoring and measuring systems, transformers, voltage stabilization, and energy efficiency measures.

PPC's subsidiaries have secured €87.1 million through six contracts, while E.ON's Delgaz Grid received €121.6 million for four investments totaling €187 million. Electrica received €170.7 million in co-financing for seven projects valued at €265.7 million.

Distributie Energie Oltenia plans to invest €59.8 million in expansion and modernization, with the state covering €38.8 million. The firm, owned by Macquarie Infrastructure and Real Assets (MIRA), has signed four agreements.

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Green Forum  |  3 April, 2025 at 11:45 PM
Green Forum  |  3 April, 2025 at 9:43 PM