Romania signs 21 distribution modernisation contracts worth €646m

The Ministry of Energy in Romania has announced the signing of 21 financing contracts, valuing a total of €646 million ($693 million) from the Modernisation Fund for the expansion and modernisation of the electricity distribution network.

The 21 projects follow the prior financing of 28 projects by the country’s energy ministry amounting to €593 million ($637 million), also aimed at expanding and modernising the electricity distribution network throughout Romania.

According to Romania’s minister of energy, Sebastian Burdujam, the contract financing will be essential for Romania’s energy transition.

Commented Burdujam in a release: “The Modernization Fund is one of the greatest opportunities for development that Romania has in recent history, and our commitment is to make the most of it in the shortest possible time.

“What do these grant investments mean? Modernising electricity distribution networks and increasing their degree of resilience in the context of climate change, by moving overhead power lines underground; increasing the absorption capacity of new prosumers and renewable energy production capacities, a phenomenon we fully support; digitisation of networks through the introduction of smart meters, with a focus on large urban communities.”

Burdujam adds that, through the investments, the country will be transitioning its national energy model into “A system in 3D: decarbonised, digitalised, decentralised.”

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The financing includes:

• €268 million ($288 million) to Distribuție Energie Electrică SA, including
  • €8.8 million ($9.5 million) for modernisation of electric energy distribution networks project in Rășinari commune, Sibiu county.
  • €47.6 million ($51.2 million) for a project to increase the degree of safety of the Sibiu Nord 110/20kV transformer station and to close the 110kV loop between the Sibiu Sud – Cisnădie – Dumbrava stations, Sibiu county
  • €25.1 million ($27 million) for the 110kV RED Modernisation project in the Smardan-Barbosi-Filesti-Arcelor Mittal area and modernisation and integration into the SCADA of the 110/20/6kV Filești substation, Galați county
  • €161 million ($173 million) for a project to implement intelligent electricity measurement systems at the level of the county seat cities; €56.9 million in the North Transylvania area, €55.1 million in the South Transylvania area and €48.9 million in the North Muntenia area
  • €23.4 million ($25.1 million) for project – Transition to 20kV Moreni municipality and modernization of the 110/20/10kV Moreni electrical transformation station, Dâmbovița county

• €187 million ($201 million) to Delgaz Grid SA, including
  • €51 million ($54.8 million) for stage one of the modernisation and SCADA integration project of transformer stations
  • €34.7 million ($37.3 million) for stage two of the modernisation and SCADA integration project of transformer stations
  • €66.6 million ($71.6 million) for stage one of the modernisation, rehabilitation and voltage level improvement project in the low-voltage networks
  • €16.6 million ($17.8 million) for the Project of Common Interest, CARMEN (Carpathian Modernization of Energy Network) Volume 1, including the modernisation of LEA 110kV Şișcani – Glăvănești – Bârlad

• €59.8 million ($64.3 million) to Distributie Energie Oltenia SA, including
  • €15.6 million ($16.8 million) for modernisation of the 110/20/10kV Dăbuleni transformer station, Dăbuleni city, Dolj county
  • €14.3 million ($15.4 million) for modernisation and SCADA integration of the 110/20 kV Dragășani transformer station, Dragășani locality, Vâlcea county
  • €11.6 million ($12.5 million) for extension of low-voltage electrical distribution networks in the communes of Șimian and Obârșia Cloșani and increasing energy efficiency and increasing the quality of energy distributed to customers by modernising transformer stations, low-voltage network and branches related to the commune of Șimian, Mehedinți county

• €43.4 million ($46.6 million) to Rețele Electrice Dobrogea SA, including
  • €10.8 million ($11.6 million) to increase security of supply in Manasia, Ialomiţa
  • €32.6 million ($35 million) to modernise the distribution network in the towns of Frumusani, Vasilati, Galbinasi, Plataresti and Fundeni, Jud. Calarasi

• €39.8 million ($42.8 million) to Rețele Electrice Muntenia SA to increase safety in the electricity supply of the town of Balotești, by modernising the MV LEA 20KV lines Balotești, Radio Săftica, Săftica, Măgura, Ghermănești, Muntenia 1, Muntenia 2, Ana Aslan

• €29.3 million ($31.5 million) to Rețele Electrice Banat SA, including
  • €17.7 million ($19 million) for 20kV Avicola Berzovia LEA modernisation works through the partial transition from LEA to LES of the MV network, the transformation of overhead PTs into concrete-encased PTs and the modernisation of the low voltage LEA network in the towns of Duleu, Remetea Pogăniș, Valea Mare, Bocșa – Binisului street
  • €11.6 million ($12.5 million) for modernisation of the distribution networks in the City of Geoagiu, Geoagiu Bai and the localities: Aurel Vlaicu, Bozes, Cigmau, Homorod, Mermezeu-Valeni, Renghet, Poienari and Valeni

• €20.7 million ($22.2 million) to E-Distribuție Banat SA for modernisation of electrical networks in the Arad Nou project

• €18.4 million ($19.8 million) to Distributie Energie Oltenia SA, for modernization and introduction into SCADA of the 110/20kV Rogojelu transformation station, Rovinari city, Gorj county

The Modernisation Fund is a programme from the European Union to support 13 Member States to meet energy targets by helping to modernise energy systems and improve energy efficiency.

States included in the Modernisation Fund include Romania, Bulgaria, Croatia, Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Poland, Portugal, Slovakia and Slovenia.