- EIB supports the upgrade and extension of 200,000 km electricity distribution network.
- Credit advances energy and climate goals of Romania and EU.
The European Investment Bank (EIB) is lending Distributie Energie Electrica Romania (DEER), the distribution operator within the Electrica Group, €200 million to upgrade its electricity distribution network covering 40% of Romania and serving approximately 4 million households and businesses. The loan, which can be disbursed in euro or lei, will support DEER in better serving its customers, improve energy efficiency, and facilitate the connection of renewable energy sources.
“Our investment reduces the risks of supply interruptions and contributes to energy efficiency and sustainability,” said EIB Vice-President Ioannis Tsakiris. “Electrica’s smarter and more resilient infrastructure will mean smoother operations for served businesses, better living conditions for people, and generally a greener environment for all.”
The electricity network in Romania is in urgent need of investment to address aging infrastructure in the face of growing demand for electricity. The operation aligns with the RePowerEU plan to support affordable, secure and sustainable energy for Europe, and contributes to the Bank’s objectives for cohesion and climate action.
“In times when we require funding for our ambitious development, the EIB’s support is a clear sign to the market that we are reliable and competitive,” said Electrica Chief Executive Officer Alexandru Chirita. “We are also happy to contribute to the energy and climate plans of Romania and the EU.”
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 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.
The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.
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, adaptation, and a healthier environment.
Approximately half of the EIB's financing within the European Union is 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.
Electrica Group
The Electrica Group is a key player in the electricity supply, distribution and production in Romania. It is also a provider of maintenance services.
DEER services approximately 4 million users with a coverage of 18 counties from three geographical areas for the distribution of electricity: Northern Transylvania, Southern Transylvania, Northern Muntenia.
As of July 2014, Electrica S.A., the holding company of the group, has been listed on the Bucharest and London stock exchanges. Electrica is the only listed Romanian company in the field of electricity distribution and supply in Romania.