EIB loans €200m to Romania’s DEER for distribution network upgrades
Image courtesy EIB
The European Investment Bank (EIB) is lending Romania’s Distributie Energie Electrica Romania (DEER), the distribution operator within the Electrica Group, €200 million ($208.4 million) to upgrade its electricity distribution network.
According to the EIB in a release, the electricity network in Romania is in urgent need of investment to address ageing infrastructure in the face of growing demand for electricity. The operation aligns with the RePowerEU plan to support affordable, secure and sustainable energy for Europe, and contributes to the Bank’s objectives for cohesion and climate action.
DEER’s distribution network covers 40% of Romania and serves approximately 4 million households and businesses. The loan will support DEER in better serving its customers, improve energy efficiency and facilitate the connection of renewable energy sources.
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Commenting in a release was EIB vice-president Ioannis Tsakiris: “Our investment reduces the risks of supply interruptions and contributes to energy efficiency and sustainability.
“Electrica’s smarter and more resilient infrastructure will mean smoother operations for served businesses, better living conditions for people, and generally a greener environment for all.”
Added Electrica chief executive officer Alexandru Chirita: “In times when we require funding for our ambitious development, the EIB’s support is a clear sign to the market that we are reliable and competitive. We are also happy to contribute to the energy and climate plans of Romania and the EU.”
The Electrica Group is a key player in the electricity supply, distribution and production in Romania and is also a provider of maintenance services.
DEER services users across 18 counties from three geographical areas for the distribution of electricity: Northern Transylvania, Southern Transylvania, Northern Muntenia.
As of July 2014, Electrica S.A., the holding company of the group, has been listed on the Bucharest and London stock exchanges. Electrica is the only listed Romanian company in the field of electricity distribution and supply in Romania.
