EBRD mulls lending 35 mln euro to Romanian electricity distributor

The loan is intended to help co-finance a portion of Retele Electrice Muntenia's 2023-2024 investment programme, focusing on network modernization and digitalization, with the project's cost totalling 575 million lei, the EBRD said in a press release on Thursday.

Retele Electrice Muntenia is one of the three power distribution system operators (DSO) in Romania majority owned by Greek utility Public Power Corporation (PPC). The other two are Retele Electrice Banat and Retele Electrice Dobrogea. On Thursday, the EBRD also said it is considering lending up to 325 million lei in total to these two DSOs to support their investment programmes for network upgrades and increased efficiency.

All three financing programmes are in the exploratory stage, pending approval on March 20.

The EBRD financing would facilitate network upgrades aimed at enhancing service quality by minimising technological losses and boosting efficiencies. It would also expand network capacity, support the implementation of smart metering, and enhance cybersecurity measures.

Retele Electrice Muntenia is responsible for 49,300 km of power lines, while Retele Electrice Banat and Dobrogea operate 45,000 km and 38,600 km of lines, respectively.

The three DSOs were previously owned by Italian energy group Enel and operated under the names E-Distributie Banat and E-Distributie Dobrogea. PPC acquired Enel’s assets in Romania for 1.24 billion euro, completing the takeover in October 2023.

(1 euro = 4.977 lei)