Romania’s utility group Electrica gets EUR 200 mn grant from Modernisation Fund

Utility company Electrica, where the Romanian state is the largest shareholder (49.8%), announced in a note to investors that its subsidiary Distributie Energie Electrica Romania (DEER) was given a EUR 200mn non-reimbursable (grant) financing through the Modernisation Fund, representing 80% of the eligible expenses (EUR 250mn), for five more new investment projects in the electricity distribution network.

Electrica’s market capitalization is RON 5.4bn (EUR 1.1bn) after its shares rose by 73% y/y. The yield generated by the dividends disbursed out of the 2023 profit was only 0.74%.

Three of the projects, totaling about EUR 162mn, of which approximately EUR 131mn are non-reimbursable funds, are for automation of the medium voltage network in the three DEER areas.

These new projects add to the other 13 investment projects for which DEER had already attracted about EUR 250mn through the Modernisation Fund.

Thus, DEER has so far attracted about EUR 450mn from the Modernisation Fund, approximately 38% of the total financing disbursed in Romania under the Modernisation Fund, and has 12 more submitted projects.

(Photo: Nataliia Babinska/ Dreamstime)