DEER signs new contracts for 1 billion RON financing from the Modernization Fund to accelerate investments

Distribuție Energie Electrică Romania – DEER signed five new financing contracts through the Modernization Fund, with a total value of almost 1 billion RON. These new non-refundable financing contracts will support the realization, at an accelerated pace, of some necessary and very important investments for the electrical distribution network.

“We have so far managed to access non-refundable funds totalling 2.7 billion RON without VAT, of which 2 billion RON from the Modernization Fund. Which is a real achievement: almost 500 million euros in non-reimbursable funds. The total value of these projects is 3.1 billion RON including VAT.

We thus fulfil one of the assumed strategic objectives, that of substantially increasing the level of access to non-reimbursable funds for investment works. Of course, it is not easy for DEER: the co-financing that we have to provide from our own funds is about 1.15 billion RON. But grant funds are extremely important to us: we manage to invest in the projects we propose without a financial impact on our users’ bills. Especially since all the investments we make are for the benefit of the users and the communities in which we operate,” said Mihaela Suciu, general director of DEER.

The new financing contracts signed with the Ministry of Energy, totalling almost 1 billion RON:

• The project “Automation of the RED MT in the North Muntenia area, in order to identify and isolate the defective network area”, in the total amount of 279,171,052.67 RON, benefits from non-refundable financing of 224,686,256.48 RON;

• The project “Automation of the RED MT in the South Transylvania area, in order to identify and isolate the faulty network area”, in a total amount of 280,406,945.58 RON, will have funding from the Modernization Fund of 225,672,702.68 RON;

• “Automating the RED MT in the Northern Transylvania area, in order to identify and isolate the defective network area” is another project (its total value is 252,651,665.11 RON), which receives, through the Modernization Fund, a financing of 201,720,727.39 RON;

• For the project “RED Modernization and implementation of a Virtual Power Plant type system at the level of Distribuție Energie Electrică Romania SA” non-refundable funds in the amount of 117,274,058.45 are accessed, the total investment being 144,594,106.63 RON;

• “Increasing the distribution capacity by modernizing the LEA 110kV Târgu Mureș – Livezeni – Corunca – Fântânele, respectively the transformation stations Tg. Mureș, Livezeni, Corunca and Târnăveni” is another project financed from the Modernization Fund (223,412,055.93 RON), the total amount being 282,026,641.80 RON.