DEER invests almost a quarter of a billion euros in the modernization and development of the electricity network

Mihaela Rodica Suciu, General Manager of Distributie Energie Electrică Romania – DEER, signed with Sebastian Burduja, the Minister of Energy, new contracts from the Modernization Fund, for the financing of seven projects, with a total value of almost a quarter of a billion euros, the non-refundable financing being 171 million euros.

Thus, the seven projects have a total value of 1.32 billion RON, the value of non-refundable financing from the Modernization Fund amounting to 849.6 million RON. DEER co-financing amounts to 472.9 million RON (almost 95 million euros).

DEER, the largest distribution operator in Romania, owns over 200,000 km of electrical networks, about 450 high and medium voltage transformer stations and over 30,000 transformer stations. More than 80% of the electricity grids were put into operation before the year 2000 and major investments are needed to modernize, retrofit or even replace them.

Sebastian Burduja, Minister of Energy: “Since the beginning of my mandate, we have focused on two main directions: accelerating investments in energy infrastructure and ensuring a quality service for all citizens. What do these grant investments mean? Modernizing electricity distribution networks and increasing their degree of resilience in the context of climate change, by moving overhead power lines underground; increasing the absorption capacity of new prosumers and renewable energy production capacities, a phenomenon we fully support; digitization of networks through the introduction of smart meters, with a focus on large urban communities. The most important benefit is that all these investments of billions of lei are made from the Modernization Fund, without putting pressure on the distribution tariff, so without leading to an increase in bills for the final consumer. Moreover, we ensure access to a high-quality and reliable service for all consumers”.

Mihaela Rodica Suciu, Director General of DEER: “According to national and European legislation, all investments must be recovered and recognized in the distribution tariff, included in the final price on the invoice. With one exception: non-refundable funds. That is why, in order not to increase the bill for our users, DEER constantly identifies opportunities to access European funds, through POIM, PNRR, the Modernization Fund, etc. We want to achieve what we set out to do, but without asking too much of the users, without exaggerating their bills. Non-reimbursable funds are an opportunity that we do not miss! We set out to access 300 million euros between 2024 and 2029. We have very little left, and we are meeting our target, and we are only at the beginning of the set period. I thank all the colleagues involved, who made considerable efforts in attracting community funds, but also in their implementation. It is a challenge and a considerable financial effort that our company must make, given the lack of cash flow, in order to successfully complete these investments, being determined to fulfill the assumed objectives. However, we need clear regulations and tariffs to support our investment effort in the next regulatory period, which will start next year. Our intentions are to increase the level of investments, of course, in accordance with the evolution of the regulatory framework and the level of ensuring the recovery of capital costs”.

The contracts signed at the Ministry of Energy refer to the following investment projects:

– “Modernization of the electricity distribution network, Rășinari commune, Sibiu county”. The total value of the project is 43,407,784.38 RON, the value of the non-refundable financing being 27,578,633.69 RON;

– “Increasing the degree of safety of the 110/20kV Sibiu Nord transformer station and closing the 110kV loop between the Sibiu Sud – Cisnădie – Dumbrava stations, Sibiu county”. The total value of the project is 237,053,759.69 RON, the value of non-refundable financing is 150,525,658.08 RON;

– “Modernization of the electrical distribution network (RED) 110kV in the Smârdan – Bărboși – Filești – Arcelor Mittal area and modernization and integration into the SCADA of the 110/20/6kV Filești station, Galați county”. The total value of the project is 124,941,087.60 RON, the value of the non-refundable financing being 76,836,020.79 RON;

– “Implementation of the intelligent electricity measurement system at the level of the county seat cities in the Northern Transylvania area: Cluj-Napoca, Oradea, Zalău, Baia – Mare”. The total value of the project is 283,048,714.58 RON, the value of the non-refundable financing being 184,153,238.98 RON;

– “Implementation of the intelligent electricity metering system at the level of the county seat cities in the Southern Transylvania area: Brașov, Sibiu, Târgu Mureș, Alba Iulia and Miercurea Ciuc. The total value of the project is 274,244,957.75 RON, the amount of non-refundable financing is 178,295,015.33 RON;

– “Implementation of the intelligent electricity measurement system at the level of the county seat cities in the North Muntenia area: Galați, Brăila, Focșani, Ploiesti and Târgoviște. The total value of the project is 243,551,475.56 RON, the amount of non-refundable financing is 158,122,227.68 RON;

– “The transition to 20kV in the municipality of Moreni and the modernization of the electric substation 110/20/10kV Moreni, Dâmbovița county. The total value of the project is 116,378,090.99 RON, the amount of non-refundable financing is 74,134,508.74 RON.