Delgaz Grid signs four new financing contracts worth 932 million RON from the Modernization Fund

Distribution company Delgaz Grid, part of the E.ON group in Romania, signed four new financing contracts, totaling approximately 932 million RON, for projects to modernize and develop the distribution system of electricity in the Moldova area where the company operates an electricity distribution network (Bacău, Iaşi, Neamț, Vaslui, Botoșani and Suceava counties).

Two projects, with a cumulative value of approximately 626 million RON, of which approximately 433 million RON represent the non-refundable financing, aim at the installation of up to 900,000 SMART meters and the creation of the necessary infrastructure for data transmission, as well as the modernization of over 40,000 branches .

Two other projects, worth approximately 306 million RON, of which 238 million RON represent the non-refundable financing, have in mind the modernization of a number of 14 transformation stations, in order to increase the safety of taking over electricity produced from renewable resources, reduce the number of interruptions, reducing the amount of undelivered electricity and reducing maintenance costs of the electricity distribution network.

Cristian Secoșan, general manager of Delgaz Grid: “We want to attract as much European money as possible for investments, especially since these financings do not put pressure on distribution tariffs. It is very important because every euro we manage to attract from EU funds and invest in Romanian infrastructure means one euro less to pay for the Romanian consumer.”

Delgaz Grid has submitted, so far, a number of 24 investment projects, totaling 3.9 billion RON, in order to obtain a 3 billion RON financing from the Modernization Fund, the difference being insured by the company.

Ten projects, worth a total of 1.8 billion RON, with a co-financing of 1.4 billion RON, have already been approved and the financing contracts signed.

The package of 24 projects refers to: modernization of transformer stations, high, medium and low voltage networks, transformer stations, SMART metering, as well as increasing the capacity of networks in the Moldova area.