A distributor obtains a loan of 90 million euros for the modernization of the network and renewable energies
Distribuie Energie Electrică Romania SA (DEER), an electricity distributor based in Romania, has secured a loan of 90 million euros ($ 102 million) for the modernization, expansion, decarbonization and digitization of the network.
The € 90 million loan is part of a € 210 million ($ 238.2 million) aid that DEER is receiving from the European Investment Bank (EIB) to renovate its network as part of a network modernization program of 300 million euros (340.4 million dollars).
The 15-year loan will finance the installation of smart meters for accurate billing and better visibility of consumer usage behavior, renewable energies for grid reliability and decarbonization and associated distribution lines and infrastructure.
Grid expansion will include installing modern substations and connecting 180,000 new customers, the statement said, while grid automation will help improve power quality, monitoring and reliability of the grid. network.
Network upgrades are also expected to help improve customer services and prepare the utility for next-generation business cases, as well as improve customer services by adapting to rapidly changing consumer demands.
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In addition, the modernization of the network will enable the provision of affordable and modern services as well as the achievement of the objectives of inclusive and sustainable economic growth (SDG 8) and climate action (SDG 13).
The project is expected to help reduce power outages and improve network efficiency for consumers in Prahova, Dâmbovița, Buzău, Brăila, Galați, Vrancea, Brașov, Mureș, Covasna, Harghita, Sibiu, Alba, Cluj, Sălaj, Maramureș, Bistrița-Năsăud, Bihor and Satu Mare.
EIB Vice-President Christian Kettel-Thomsen said: “The latest EUR 90 million financing agreed with Electrica reflects the rapid progress of the transformation initiative and the shared commitment of the EIB and Electrica to unlock greater use of renewable energies.
Corina Popescu, CEO of Electrica, the parent company of DEER, added that the loan will help “replace obsolete assets, better meet the energy needs of our 3.8 million customers through the deployment of advanced meters and accelerate Romania’s green transition ”.
This announcement follows DEER obtaining a loan of 150 million euros ($ 170.2 million) from Erste Group Bank AG and Raiffeisen Bank România, which will finance the network modernization strategy 2019- Company 2023.
Commenting on the development, Popescu added: “As an important step towards the implementation of the inorganic growth strategy of the Electrica group, the signing of this milestone financing agreement with two of our partner banks will allow us to finance the acquisition projects in the renewable energy production sector, both operational and greenfield, reaffirming our commitment to contribute through our own efforts to the achievement of the environmental objectives of the European Ecological Pact.