BUCHAREST - Romanian energy distributor Distributie Energie Electrica Romania (DEER), part of the Electrica Group, has secured a EUR 200 million loan from the European Investment Bank (EIB). The funding is aimed at supporting DEER's investment plan for the 2024-2026 period, focusing on enhancing its electricity distribution network, which services approximately 4 million households and businesses across 40% of Romania.
The loan, which can be disbursed in either EUR or RON, is intended to help DEER improve service reliability, increase energy efficiency, and facilitate the integration of renewable energy sources into the grid. This modernization effort is critical as Romania's electricity network requires substantial investment to modernize aging infrastructure amid escalating electricity demand.
The EIB loan is backed by a Professional Payment Guarantee from Electrica SA (ELSA), valid until all obligations under the agreement are met, with a maximum guarantee value of EUR 240 million or its equivalent in RON. This guarantee received approval from ELSA's shareholders at the Extraordinary General Meeting held on December 11, 2024.
EIB Vice-President Ioannis Tsakiris highlighted the loan's benefits, stating, "Our investment reduces the risks of supply interruptions and contributes to energy efficiency and sustainability." He emphasized the positive impact on businesses and residents, noting that the investment would lead to a greener environment overall.
The initiative aligns with the RePowerEU plan, aiming to foster affordable, secure, and sustainable energy within Europe, and supports the Bank's goals regarding cohesion and climate action. Alexandru Chirita, CEO of Electrica, expressed gratitude for the EIB's support, remarking that it demonstrates the company's reliability and competitiveness in the market. He also noted Electrica's commitment to the energy and climate plans of Romania and the EU.
The loan agreement underscores the ongoing efforts to improve Romania's energy infrastructure and Electrica's role in advancing the country's energy goals. This development is based on a press release statement.
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