Romanian Delgaz Grid takes EUR 600 mln syndicated loan for network modernisation

Delgaz Grid, a subsidiary of E.ON that operates electricity and natural gas distribution networks serving over 3 million households in north-east Romania, contracted a RON 3 billion (EUR 600 million) syndicated loan for cabling, digitalised substations and a rollout of 272,000 smart meters.

The loan was extended by a syndicate formed by the European Bank for Reconstruction and Development (EBRD) as the primary lender (EUR 400 million) and seven commercial banks.

According to the EBRD press release, the investment will be used solely for the expansion and modernisation of Delgaz’s electricity distribution network.

Specifically, the loan will enable the electricity and gas network operator to enhance its network with key solutions, such as new underground and overground cabling, new substations that use digitalised approaches and integrate the latest supervisory control and data acquisition (SCADA) systems, as well as 272,000 smart meters for its customers.

The enhancements will also enable more intermittent renewable energy to be connected to the grid, supporting Romania’s 2030 renewable energy target.

(Photo source: Radovan Smokon/Dreamstime.com)