Romania’s state-owned power grid operator Transelectrica plans to invest RON 1.7 billion (EUR 365 million) by 2020, most of the money coming from the company’s own sources.

This year, the investments will amount to EUR 90.5 million. The level will increase to EUR 137 million in 2019 and EUR 141 million in 2020.

The company will invest in revamping and modernizing some power stations, increasing the interconnection capacity with neighboring countries and integrating the new power plants into the national grid to avoid congestions.

At the end of last year, the energy sector regulator ANRE sanctioned Transelectrica for failing to carry out the investments included in its management plan for 2014-2017, which put the national energy system at risk, according to an official document of the company. Transelectrica only invested about 35% of the RON 2.2 billion planned for the 2014-2017 period.

The company’s net profit fell by 90% last year, to RON 26.4 million (EUR 5.8 million). This year, the company estimates a net profit of RON 73 million, about three times higher than last year, despite a 9% projected decline in revenues, to RON 2.81 billion.

editor@romania-insider.com