REG - Soc EnergElectricaSA - EUR 200 million Non-Reimbursable Financing

Societatea Energetica Electrica SAAnnouncement

02/08/2024 09:30

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RNS Number : 9825Y  Societatea Energetica Electrica SA  02 August 2024

Announcement

Electrica Attracted EUR 200 mil. More Non-Reimbursable Financing Through the
Modernisation Fund

Electrica announces its shareholders and investors that its subsidiary
Distributie Energie Electrica Romania (DEER) has attracted EUR 200 mil. More
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 250 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 5 new projects complete the list of the 13 investment projects for which
DEER attracted about EUR 250 million through the Modernisation Fund (Electrica
sent to the capital market two communications on 30 June 2023 - BSE:IRIS code
4EB49, LSE:RNS code 5930E, 19 June 2023 - BSE:IRIS code 647D5, LSE:RNS code
1969D, 29 November 2023 - BSE:IRIS code DA125, LSE RNS Code 1065V, 15 February
2024 -BVE: IRIS Code 38D9D, LSE:RNS Code 3222D).

Regarding the status of these 13 projects, 4 projects are in execution, 7
projects are in the acquisition phase, and 2 projects are in preparation for
acquisition.

Thus, DEER has so far attracted about EUR 450 million from the Modernisation
Fund, approximately 38% of the total financing already signed on the
Modernisation Fund, and has 12 more submitted projects.

"Through our Group strategy, we committed to improve the performance of the
managed infrastructure and to accelerate the digital transformation of the
business. This achievement represents another step towards our strategic goal
of accessing as many non-reimbursable funds for investments as possible. We
congratulate the DEER team 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 162 million, of which approximately
EUR 131 million are non‑reimbursable funds, are for automation of the medium
voltage network in the three DEER areas, in order to identify and isolate the
faulty network area, with the objective of improving the quality parameters of
the distributed electricity and the performance indicators of the distribution
service, by increasing the continuity of the distribution service. The RED
Automation projects will have an impact on the continuity indicators in the
supply for the end-users and energy producers.

The project "Modernization of the RED and implementation of a Virtual Power
Plant system at the level of DEER is intended to be an efficient response to
the challenges identified with the transition of the passive electricity grid
to an active electricity grid, with bidirectional power flows. The fifth
project aims to increase the distribution capacity by modernizing the 110kV
Targu Mures-Livezeni-Corunca-Fantanele OHL, respectively the Tg. Mures,
Livezeni, Corunca and Tarnaveni transformer stations.

More details can be found in the following table:

     Investment project                                                              Total project value (VAT included)  Max. amount financed by MF*  Deadline for completion
 1   Automation of the medium voltage network in the North Muntenia area, in order   EUR 55.75 million                   EUR 45.15 million            30 June 2029
     to identify and isolate the faulty network area
 2   Automation of the medium voltage network in the South Transylvania area, in     EUR 55.99 million                   EUR 45.35 million            30 June 2029
     order to identify and isolate the faulty network area
 3   Automation of the medium voltage network in the North Transylvania area, in     EUR 50.39 million                   EUR 40.54 million            30 June 2029
     order to identify and isolate the faulty network area
 4   Modernization of the RED and implementation of a Virtual Power Plant system at  EUR 28.938.72 million               EUR 23.57 million            30 June 2028
     the level of DEER
 5   Increase of distribution capacity through modernization of the 110kV OHL Targu  EUR 56.21 million                   EUR 44.90 million            31 June 2029
     Mures- Livezeni-Corunca- Fantanele, respectively the Tg. Mures, Livezeni

     Corunca and Tarnaveni transformer stations.
     TOTAL                                                                           EUR 247.26 million                  EUR 199.51 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 4.9760 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)

Phone: +40 731 796 111

 

 

CEO

Alexandru-Aurelian Chirita

 

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