- EBRD lends €100 million equivalent to Romania electricity distribution network for €200 million upgrade
- Finance is to modernise and digitalise electricity distribution networks in two regions
- The EBRD is a leader in green finance and supports Romania’s renewable energy ambition
The EBRD is lending the equivalent of €100 million in Romanian lei (RON 500 million) to distribution subsidiaries of Public Power Corporation SA, operating in South-Eastern and Western Romania, part of a RON 1 billion (€200 million) syndicated loan alongside three local lenders to modernise and digitalise the electricity distribution networks, making them better able to absorb more renewable energy capacities.
The syndicated loan with ING Bank, Banca Comerciala Romana and Banca Transilvania will indirectly support Romania to achieve its ambitious target of raising the share of renewable electricity in its energy mix to 36.2 per cent by 2030, through the addition of 11.9 GW of new capacity.
The upgrades will also enhance energy efficiency and reduce losses in the distribution grid, saving about 31,800 tonnes a year of carbon dioxide equivalent emissions. They will also include the installation of almost half a million smart meters for end-users by 2025.
As a member of the European Union (EU), Romania is committed to implementing the EU’s Fourth Energy Package, “Clean Energy for all Europeans”. This aims to modernise the EU electricity market, making it more flexible and better able to integrate a greater share of renewables.
The three companies involved in this project – Retele Electrice Banat, Retele Electrice Dobrogea and Retele Electrice Muntenia – are ultimately owned by Public Power Corporation SA, an existing client of the EBRD in which the Bank holds a minority stake of 2.2 per cent.
George Gkiaouris, EBRD’s Regional Head Energy, Southeast Europe, said: “We are pleased to support PPC Romania implement priority investments in Romania’s distribution grid. The project will enhance the grid’s reliability and efficiency and support’s Romania’s green energy transition.”
The EBRD, a leader in climate finance, has supported the implementation of renewable energy auctions across its countries of operations. To date, the EBRD has invested almost €11 billion in 524 projects in Romania. Its current strategy for Romania prioritises improving the quality of sustainable infrastructure.