The European Investment Bank (EIB) on December 20 completed the disbursement of 1.025 billion euros to Romania, corresponding to the total value of projects approved for financing through the Modernization Fund, at the autumn session of the Investment Committee, it said in a statement. from the Ministry of Energy. Almost half of the funds will be directed to the purchase of electric trains.

Payments were made on the basis of the Commission’s Decision on the payment of proceeds of the Modernization Fund from the second half-yearly payment cycle of 2023.

The Czech Republic, Estonia, Lithuania, Poland, Romania and Slovakia submitted a total of 49 investment proposals to the European Investment Bank (EIB) and the Investment Committee.

Romania has submitted seven non-priority investment proposals and nine priority investment proposals, one of which concerns the next installment of a scheme for which the first financing amount has been paid in accordance with Commission Decision C(2022) 3496.

The two priority investments for which payments have been made are:

• DigiTEL Green Pilot Project – Reconstruction of the 220/110/20 kV Mostiștea station in the concept of a digital station with low environmental impact, beneficiary of CNTEE Transelectrica SA. The total cost of the project is 59.1 million euros, of which 48.3 million euros are the funds of the Modernization Fund.
• Support for reducing energy consumption through energy efficiency in the transport sector – sustainable rolling stock, beneficiary Ministry of Transport. The total cost of the project is EUR 559.5 million, of which EUR 470.2 million is financing from the Modernization Fund.

A non-priority investment gas pipeline to supply CET Mintia (also covering other industrial and domestic customers), a proposal from SNTGN Transgaz SA, receives €6.8 million in funding.

According to the long-term scheme Implementation and modernization of the electricity distribution network (ORM), the payment of the second tranche in the amount of 500 million euros was made.

Sebastian Burdugia, Minister of Energy: “The Modernization Fund is one of the biggest development opportunities that Romania has in recent history, and thus the Ministry of Energy is leading a strategic investment for the future of Romania and the Romania of the future.

We are talking about a total of more than 15 billion euros, European money aimed at the transition to a low-carbon energy system, by stimulating investments in renewable energy sources, transport and distribution networks for thermal energy in residential and commercial areas, interconnections of networks for transportation electricity and natural gas, energy storage capacity, ways to increase energy efficiency in various sectors of the economy and ensure a fair transition in coal-dependent regions.”

What money has come from the Modernization Fund so far

As part of the Modernization Fund, 18 separate contracts have been signed so far with a total non-refundable amount of 30.4 billion lei, corresponding to 6.0 billion euros.

Of these, 9 contracts were concluded with Transelectrica, 4 SPV CEO – OMV PETROM contracts and 5 SPV CEO – Tinmar Energy contracts (including one CCGT contract – “Construction of a combined cycle power plant on natural gas, approximately 475 MW, in Turcheny”).

The 8 CEO SPV contracts give a total installed capacity of 735MW and the CCGT contract 475MW, thus a total of 1210MW.

Also, within the framework of the Modernization Fund, Key Program 3- Support for the expansion and modernization of the electricity distribution network, 8 contracts were signed with a total non-refundable amount of 430 million lei, which is equivalent to 86.1 million euros.

Thus, the total amount allocated for investments from the Modernization Fund reached 30.8 billion lei, which is equivalent to 6.1 billion euros.

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