October 10 (SeeNews) - Romanian power grid operator Transelectrica [BSE:TEL] said on Monday that it has signed 424 million euro ($415.6 million) worth of non-refundable financing contracts under the EU's Modernisation Fund for projects for the development of the national grid infrastructure.
The nine projects will contribute to the rise of the interconnection capacity with the European power system and to the development of Romania's transmission electricity system, Transelectrica said in a filing to the Bucharest Stock Exchange, BVB.
The projects will also contribute to the security, flexibility and adequacy of the national power system, offering the premises of putting into operation of new energy production capacities from renewable sources.
Following the investments, the capacity of the transmission system will increase by almost 1,700 MW. Some 480 km of new overhead lines will be built, five 400 kV power stations will be extended, and the interconnection capacity will rise by 600 MW.
The high level of this non-refundable financing will have a positive effect on Transelectrica’s profitability in the long term and will ensure the rise of the its liquidity indicators.
The financing represents 30% of the total funds obtained by Romania through the Modernization Fund, respectively 14% from the total financing obtained by eight member states from Easter and Central Europe with approved projects.
The Modernisation Fund is a dedicated funding programme of the European Union to support 10 lower-income member states to meet 2030 energy targets by helping them to modernise energy systems and improve energy efficiency.
Transelectrica's net profit slumped by 73% year-on-year in the first half of 2022, to 28 million lei ($5.9 million/ 5.7 million euro), mainly due to higher electricity purchase prices.
Blue-chip Transelectrica's shares traded 0.29% lower at 17.45 lei ($3.46/ 3.53 euro) as at 1444 CET on Monday on the BVB.
(1 euro=4.9395 lei)
CNTEE Transelectrica SA is among the biggest companies in SEE, for more reference take a look at Top 100 companies