Energy Ministry reveals priority investment proposals, financed through the Modernization Fund, which will be sent to the European Investment Bank for financing

The Minister of Energy, Sebastian Burduja, presented, today, during the Government meeting, the list of priority investment proposals, financed by the Modernization Fund (FM), which will be sent to the European Investment Bank for financing.

Today, August 28, 2024, during the Government Meeting, the Minister of Energy, Sebastian Burduja, presented the list of priority investments prepared to be sent for evaluation to the European Investment Bank. In order to obtain financing through the Modernization Fund, the Ministry of Energy initiated 3 priority investment proposals, to which are added 3 other proposals from the Ministry of Transport and Infrastructure (MTI) and an investment proposal from the Ministry of Agriculture and Rural Development (MADR ).

“The modernization fund represents a huge opportunity for Romania. Since the beginning of my mandate, through this fund, we have managed to attract billions of euros for the energy transition towards safer, cheaper and greener energy for all Romanians. These non-refundable European funds go directly to the Romanian economy, and the main beneficiaries are Romanian companies, public entities and local communities.

We are particularly proud of the call for financing cogeneration production capacities, including the CETs in Bucharest being eligible to be upgraded after 60-70 years of commissioning. Just as importantly, we are delivering on our promise and will fund a new support scheme for battery storage, which will help balance the national energy system and allow us to benefit from renewable energy even when the wind or the sun aren’t beating. Last but not least, we request an increase in financing for green energy production, to cover all the more than 1400 eligible projects already submitted by town halls, universities, etc., exceeding the amount of 650 million euros for these beneficiaries.

All these projects will make Romania safer in the energy sector, but will also lead to better prices on Romanians’ bills. Beyond developments in the spot markets, bills are capped until 1 April 2025. But it is important that by then we get as much new or upgraded capacity up and running as possible and complete the projects we have started. The investments mean thousands of new jobs and the chance to revive the Romanian industry for the energy sector. For all these reasons, we set out to set a new record for the evaluation and contracting of projects in the shortest time, so that we sign all the contracts related to these investments by the end of this year”, stated the Minister of Energy, Sebastian Burduja.

Romania’s priority investment proposals for the autumn session of the Investment Committee of the FM:

• State aid scheme to support the development of flexible gas production capacities for the production of electricity and heat in high-efficiency cogeneration (CHP) in the district heating sector, initiated by the Ministry of Energy and for which payment is requested in this session in full, in the amount of 361,950,000 euros;
• The state aid scheme for supporting investments in the development of electricity storage capacities (batteries) with funding from the Modernization Fund, initiated by the Ministry of Energy and for which full payment is requested in this session, in the amount of 150,000,000 euros;
• Supporting investments in new production capacities of electricity produced from renewable sources for self-consumption for applicants from the public sector, initiated by the Ministry of Energy and for which the payment of the first installment in the amount of 160,000,000 euros is requested in this session (from the total funding requested by 200,000,000 euros);
• The state aid scheme for supporting investments in new electricity production capacities produced from renewable sources for self-consumption of airfields, including energy storage systems, initiated by the Ministry of Transport and Infrastructure and for which the payment of the first installment in the amount is requested in this session of 70,000,000 euros (out of the total requested financing of 200,000,000 euros);
• The state aid scheme for supporting investments in new electricity production capacities from renewable sources for the self-consumption of enterprises in the agricultural sector and the food industry, initiated by MADR and for which the payment of the second installment in the amount of of 50,000,000 euros (out of the total FM financing of 500,000,000 euros);
• The purchase of rolling stock M4 (12 subway trains and safety and automation system), initiated by MTI for which the payment of the first installment in the amount of 51,638,815.62 euros is requested in this session (out of the total requested financing of 165,152,450, 42 euros);
• The electrification of the railway lines (Constanța – Mangalia, Rădulești – Giurgiu Nord and Chiajna – Jilava), initiated by MTI, for which the payment of the first installment in the amount of 39,823,445.28 euros is requested in this session (out of the total requested financing of 89,263. 272.54 euros).

Funding from the Modernization Fund is based on the investment proposals that the beneficiary states send to the EIB for evaluation, and following the analysis and recommendations, the Investment Committee of the FM approves their financing. The investment committee meets twice a year, and at this moment, Romania is preparing the portfolio of projects to be submitted in the autumn session, which will take place on October 22, 2024.