Romania: Residents in northeast to get energy-network upgrade with €200 million EIB loan to Delgaz Grid

• EIB lends Romanian energy distributor Delgaz Grid €200 million to upgrade its electricity system in country’s northeastern region of Moldova.
• Loan to improve power interconnections for over 1.5 million households and businesses
• Credit is part of €630 million Delgaz Grid investment programme.

The European Investment Bank (EIB) is lending Romanian energy distributor Delgaz Grid €200 million to upgrade the electricity network in the country’s northeastern region of Moldova; the loan amount can be disbursed both in EUR and RON. The EIB credit is part of a €630 investment programme by Delgaz Grid to improve a power system that serves more than 1.5 million households and businesses.

The planned works, due to be completed by 2027, will deploy cutting-edge technologies to make the grid more suitable for clean sources of energy such as solar power. The project focuses on high-, medium- and low-voltage power lines as well as on metering and network automation, contributing to decarbonisation of the energy sector and ensuring efficient electricity distribution across borders.

“This initiative will enhance energy efficiency, facilitate the integration of renewable energy and enable economic growth in the region,” said EIB Vice-President Ioannis Tsakiris. “The digitised infrastructure of Delgaz Grid will be smarter and more resilient, significantly improving the distribution of energy that can power millions of households for a year.”

The planned upgrades cover a power network of more than 80,000 kilometres and advance a European project known as the Carpathian Modernised Energy Network, or CARMEN, which aims to improve electricity interconnection and interoperability among Romania, Hungary and Bulgaria by 2028.

“Our total investment of nearly €630 million is for upgrading and digitising our infrastructure,” said Volker Raffel, chief executive officer of E.ON Romania, the parent company of Delgaz Grid. “Investments into grids unleash economic growth for Romania. We are addressing the challenges of an unprecedented development in renewable energy generation capacities, in the number of prosumers and electric vehicle charging stations. This agreement is essential to enhance the quality of our services, improve operational efficiency, and ensure secure electricity flows. We are glad to have EIB as our partner to further develop the sustainability of the industry and serve our clients.”

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.