Romania secures EUR 200 mln EIB loan for energy network modernization

Romania has secured a EUR 200 million loan from the European Investment Bank (EIB) to modernize its electricity distribution network. The funding is for a EUR 629 million investment project aimed at strengthening the country's energy infrastructure, which includes co-financing from European funds and contributions from the project's beneficiary.

The project, which aligns with Romania's goal of achieving energy independence, focuses on upgrading and expanding the capacity of the nation's electricity distribution network.

"Romania takes another step towards its goal of having a modern, robust, and efficient electricity network, becoming an energy-independent country and a stabilizing force in the region," stated Mihai Precup, a member of the EIB Board of Directors, quoted by Agerpres.

The EIB's operation will primarily support the consolidation and renovation of Romania's substations and overhead power lines. These upgrades are designed to enhance the network's capacity to absorb and distribute electricity generated from renewable sources while also reducing internal energy consumption.

Additionally, the project includes elements of the "Carmen 1" initiative, a smaller component accounting for approximately 10-15% of the total investment.

This initiative is part of a broader European Union Project of Common Interest (PCI), which seeks to improve interconnectivity between electricity networks in Romania, Bulgaria, and Hungary.

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