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RNS Number : 3222D Societatea Energetica Electrica SA 15 February 2024
Announcement
Electrica Attracted EUR 171 mil. Non-Reimbursable Financing Through the
Modernisation Fund
Electrica announces its shareholders and investors that its subsidiary
Distributie Energie Electrica Romania (DEER) has attracted EUR 171 mil.
non-reimbursable financing through the Modernisation Fund, representing 80% of
the eligible expenses for seven more new investment projects in the
electricity distribution network, projects whose total estimated value is
approx. RON 266 mil. (without VAT).
For the part of ineligible costs, according to the Methodology for setting
distribution tariffs, for fixed means related to investments in distribution
networks made with own funds within projects co-financed by European
non-reimbursable funds, put into operation starting from 1 February 2021, an
incentive is established in the amount of 2 percentage points above the
approved regulated rate of return.
These projects complete the list of the 6 investment projects for which DEER
attracted about EUR 82 million through the Modernisation Fund (Electrica sent
to the capital market two communications on June 30 - IRIS code 4EB49, LSE RNS
code 5930E, June 19, 2023 - IRIS code 647D5, LSE RNS code 1969D, November 29,
2023 - IRIS code DA125, LSE code RNS 1065V). Regarding the status of these 6
projects, 3 projects are in execution, 2 projects are in the acquisition
phase, and 1 project is in preparation for acquisition.
Thus, DEER has so far attracted about a quarter of a billion EUR from the
Modernisation Fund, approximately 42% of the total financing already signed on
the Modernisation Fund, with another 17 submitted projects.
"Through the Group-wide strategy, we aim to maximize the performance of the
managed infrastructure and to accelerate the digital transformation of the
business. This success represents a significant step in achieving our
strategic objective of substantially increasing access to non-reimbursable
funds for our investments. We congratulate our colleagues for this success and
encourage them to continue at the same pace", said Alexandru Chirita, CEO of
Electrica.
Three of the projects, totalling about EUR 161 million, of which approximately
EUR 105 million are non‑reimbursable funds, are for the implementation of
the intelligent electricity metering system at the level of county capital
cities in all areas covered by DEER, and involve both the installation of
about 1.18 million smart meters for users located in county residence cities,
as well as the modernisation of a number of 327 transformer substations with
installation of distribution transformers with load adjustment (thus
facilitating the connection of prosumers).
The other 4 projects, totalling EUR 104.86 million, of which EUR 66.13 million
non-reimbursable funds, will be carried out in Sibiu, Galati and Dambovita
counties and aim at modernising and building new electricity distribution
networks on all voltage levels, modernising transformer stations, implementing
digitization and smart metering systems.
More details can be found in the following table:
Investment project Total project value (VAT included) Max. amount financed by MF* Deadline for completion
Implementation of the intelligent electricity metering system at the level of EUR 56.88 million EUR 37.01 million 30 June 2029
county capital cities in the Northern Transylvania area (Cluj-Napoca, Oradea,
Zalau, Baia-Mare)
- 400,895 installed smart meters
- 94 modernised substations
Implementation of the intelligent electricity metering system at the level of EUR 55.11 million EUR 35.83 million 30 June 2029
county capital cities in the Southern Transylvania area (Brasov, Sibiu, Targu
Mures, Alba Iulia and Miercurea Ciuc)
- 352,694 installed smart meters
- 146 modernised substations
Implementation of the intelligent electricity metering system at the level of EUR 48.95 million EUR 31.78 million 30 June 2029
the county capital cities in the Muntenia Nord area (Galati, Braila, Focsani,
Ploiesti and Targoviste)
- 354,401 installed smart meters
- 87 upgraded substations
Modernisation of electricity distribution networks, Rasinari commune, jud. €8.72 million 5.54 Mio. EUR 30 May 2027
Sibiu
- 2,276 installed smart meters
- 10.23 km medium voltage power lines
- 24.50 km Low voltage power lines
- 1,936 upgraded connections
Safety increase of the 110/20kV transformer station Sibiu Nord and closure of 47.64 30.25 31 December 2028
the 110kV loop between Sibiu Sud - Cisnadie - Dumbrava stations, jud. Sibiu
- Modernisation of 110/20kV Sibiu Nord and 110/20kV Cisnadie
transformer stations by replacing equipment and implementing digitization in
the two transformer stations;
- Increasing the safety degree of RED 110kV in mun. Sibiu by
building 15.8km of 110kV LES;
Modernisation of RED 110kV in the area Smardan-Barbosi-Filesti-Arcelor Mittal 25.11 15.44 30 September 2027
and modernisation and integration into SCADA substation 110/20/6kV Filesti,
jud. Galati-
- Modernisation of the 110/20/6kV transformer substation Filesti by
replacing the equipment and implementing digitization in the transformer
station;
- Reconfiguration of RED 110kV in the area between Filesti, Smardan,
Barboși and Arcelor Mittal transformer stations to increase operational
safety; The works will also include the construction of 2.92km of 110kV OHL,
the installation of four 110kV OHL poles and the connections with related
Ol-Al conductors.
Switching to 20kV Moreni municipality and modernisation of 110/20/10kV Moreni 23.39 14.90 31 March 2028
transformer substation, Dambovita county
- 30.3km of medium voltage power grids;
- 8053 smart meters
- modernisation of Moreni 110/20/10kV transformer station by
replacing primary equipment and implementing digitization.
TOTAL EUR 265.80 million EUR 170.75 million
* The maximum value financed through the Modernisation Fund does not include
VAT (ineligible, being considered contribution of the beneficiary)
Note: the values in EUR were estimated at an exchange rate of 4.9604 RON/EUR
The Modernisation Fund is a financing instrument that contributes to the
objectives of the European Climate Pact by supporting a socially just
transition towards a green economy. More details about the Modernisation Fund
can be found on the official websites:
· https://modernisationfund.eu/ (https://modernisationfund.eu/) (only
in English)
· https://oportunitati-ue.gov.ro/program/fondul-pentru-modernisare/
(https://oportunitati-ue.gov.ro/program/fondul-pentru-modernizare/) (in
Romanian and English)
· https://energie.gov.ro/category/fondul-pentru-modernisare/
(https://energie.gov.ro/category/fondul-pentru-modernizare/) (only in
Romanian)
Contact details:
Electrica Investor Relations
E-mail: ir@electrica.ro (mailto:ir@electrica.ro)
Telefon: +40 731 796 111
CEO
Alexandru-Aurelian Chirita
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