On the sidelines of a meeting of the Investment Committee of the EU’s Modernisation Fund that took place on October 22, 2024, in Budapest, Romania’s Ministry of Energy got non-repayable funding for all its six priority investment proposals submitted, EUR 1.1 billion, the first EUR 860 million of which will be transferred to Romania by the end of 2024.
According to a press release from the ministry, the six investment projects qualifying for the new funding are three state aid schemes initiated by the Ministry of Energy, two individual projects and one state aid scheme supported by the Ministry of Transport and Infrastructure.
„At the Ministry of Energy, we continue with the same motto: investment, investment, investment. Almost EUR 1 billion will enter Romania’s accounts by the end of the year, from the Modernisation Fund, for investment in the production and storage of green energy, the construction of new high-efficiency cogeneration facilities, the modernisation of the Bucharest metro and the electrification of some railway lines. All of them are important and necessary investment projects, and Romania is the champion of attracting non-repayable funding from the Modernisation Fund. But our development potential is huge and, that’s why we don’t stop there. Investment by investment, project by project, we support the energy of tomorrow’s Romania: safe, accessible and as green as possible. With each new MW for the national energy grid, Romanians will have the chance to reduce the price of electricity in their bills, and the Romanian economic environment will become more competitive,” Energy Minister Sebastian Burduja is quoted as saying in a press statement released on Tuesday.
Thus, in the application of the policy of developing new sources of energy production from renewable resources and, at the same time, of managing the balance between energy production and consumption – especially in the context of a sharp increase in demand and the transition to renewable energy sources – the Ministry of Energy will finance, under two state aid schemes, investment in new facilities for the production of electricity from renewable resources for self-consumption for public sector requests and also in the development of electricity storage (batteries).
The two measures qualify for EUR 350 million, including EUR 200 million for funding the production of electricity for self-consumption, for public sector requests.
The funding is of special importance, as it comes to round up the initial call of the Ministry of Energy, which had a budget of EUR 500 million with funds also coming from the Modernisation Fund. As the budget was insufficient, taking into account a raising interest and the need to support the public environment in the process towards the green transition, the Ministry of Energy decided to supplement the funds and finance all eligible projects submitted under the initial call, the release mentions.
Additional to the investment policy in the production of electricity from reusable resources, the second investment measure supported by the Ministry of Energy is to support investments in the development of electricity storage capacities (batteries). The call for projects will have EUR 150 million from the Modernisation Fund, to be launched in November.
Also, EUR 361.950 million euros will be allocated to investment in the development of flexible gas production facilities for the production of electricity and heat in high-efficiency cogeneration in the district heating sector.
„Our institutional partner, the Ministry of Transport and Infrastructure will finance, also from the Modernisation Fund, three investment projects totalling EUR 400,000,000, for the acquisition of 12 trains for the M4 metro line, the electrification of three railway lines and a state aid scheme for new facilities for the production of electricity from renewable resources for the own consumption of aerodromes, including energy storage systems.”
According to the procedure, all the above-mentioned investment projects have been previously technically and financially assessed and confirmed by the European Investment Bank (EIB) in order to ensure their alignment with the objectives of the EU-ETS Directive, with the objectives expressed in the Commission Communication of 11 December 2019 on the „European Green Deal”, as well as with the long-term objectives expressed in the Paris Agreement.
The Modernisation Fund is a programme from the European Union to support 13 member states to meet energy targets by helping to modernise energy systems and improve energy efficiency.
AGERPRES
