EIB Supports €200 Million Loan to Delgaz Grid for Electricity Network Upgrades in Romania

EIB Supports €200 Million Loan to Delgaz Grid for Electricity Network Upgrades in Romania

(IN BRIEF) The European Investment Bank (EIB) is lending €200 million to Romanian energy distributor Delgaz Grid to modernize the electricity network in Moldova’s northeastern region. This funding, part of a €630 million investment program, will enhance energy efficiency, support renewable energy integration, and improve electricity distribution for over 1.5 million households and businesses. Scheduled for completion by 2027, the project includes upgrades to 80,000 kilometers of power lines, advanced metering, and network automation. The initiative aligns with the Carpathian Modernised Energy Network (CARMEN) project, aiming to improve regional electricity interconnections by 2028, while supporting Romania’s energy transition and economic growth.

(PRESS RELEASE) LUXEMBOURG, 21-Nov-2024 — /EuropaWire/ — The European Investment Bank (EIB) is providing a €200 million loan to Delgaz Grid, Romania’s energy distributor, to modernize the electricity network in the northeastern region of Moldova. This financing is part of Delgaz Grid’s €630 million investment program aimed at enhancing the resilience, efficiency, and sustainability of the power infrastructure that serves over 1.5 million households and businesses.

Scheduled for completion by 2027, the project will implement advanced technologies to support renewable energy integration, including solar power, and improve energy efficiency. It will focus on upgrading high-, medium-, and low-voltage lines, as well as modernizing metering and network automation systems. These improvements are expected to decarbonize the energy sector while ensuring reliable electricity distribution within Romania and across borders.

“This investment will significantly enhance the energy grid, enabling it to handle renewable sources while supporting regional economic development,” stated EIB Vice-President Ioannis Tsakiris. “By incorporating digitized infrastructure, Delgaz Grid’s network will become smarter and more resilient, directly benefiting millions of households.”

The upgrades will cover over 80,000 kilometers of power lines and align with the Carpathian Modernised Energy Network (CARMEN) initiative, a European project aimed at improving electricity interconnections between Romania, Hungary, and Bulgaria by 2028.

Volker Raffel, CEO of E.ON Romania, the parent company of Delgaz Grid, emphasized the transformative potential of the investment. “Our €630 million commitment to upgrading and digitizing infrastructure is crucial for Romania’s economic growth and energy transition. This partnership with the EIB allows us to address the rapid expansion of renewable energy, electric vehicle infrastructure, and the growing number of prosumers. These efforts will improve operational efficiency, ensure secure electricity distribution, and enhance the quality of our services for clients across the region.”

By supporting Delgaz Grid’s modernization efforts, the EIB reinforces its dedication to advancing sustainable energy solutions, promoting decarbonization, and fostering economic growth in Romania and beyond.

Background information

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation and adaptation, and a healthier environment.

Last year, around half of the EIB’s financing within the European Union was directed towards cohesion regions, where per capita income is lower. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.

Delgaz Grid

Delgaz Grid, the distribution company of the German Group E.ON, operates a 25,800 km natural gas network across 20 counties in the northern and western parts of Romania and an 81,500 km electricity network in six counties in the Moldova region (Bacău, Botoșani, Iași, Neamț, Suceava, and Vaslui). Since entering the local market in 2005, E.ON has invested €2.3 billion, primarily in modernizing gas and electricity networks, and has contributed €3.4 billion in taxes and fees to the state.

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SOURCE: European Investment Bank