Power Grid

13 Oct 2022

Romania Secures €420m+ for Massive Grid Overhaul

13 Oct 2022  by   
Contracts have been signed valuing €424.4 million ($411.8 million) for nine projects to oversee the digitisation and modernisation of Romania’s transmission network and power grid.

Prime Minister Nicolae-Ionel Ciucă participated, October 10, in the signing of the first nine financing contracts. The event was attended by the Minister of Energy, Virgil Popescu, the general secretary of the government, Marian Neacșu, the president of the Transelectrica Directorate, Gabriel Andronache.
The contracts were signed yesterday between the country’s Ministry of Energy and the national electric power transport company, Transelectrica SA.

Romania’s investment

Prime minister of Romania Nicolae-Ionel Ciucă stated on the announcement: “Today we signed the first financing contracts from the Modernisation Fund, opening the most important line of European funds intended for the development of the Romanian energy sector.

“Solutions to protect citizens and the economy from the effects of rising prices are complemented by investments in strengthening energy infrastructure and increasing production capacities. The government, through the Ministry of Energy and the responsible institutions, remains engaged in the efforts to ensure accessible energy for Romanians and the national economy.”

The investments aim to both modernise electricity transmission capacities and improve energy efficiency, security and flexibility in the country, through the construction of new overhead power lines and their interconnection to the SEN (National Energy System).

It is hoped that this will help develop premises for the commissioning of new renewable energy production capacities.

9 grid modernisation projects

The nine projects that have obtained funding from the Modernisation Fund include:

• Digitisation of the electricity transmission network in Romania by installing two online systems, for the metering and management of electricity measurement data on the wholesale market and for monitoring the quality of electricity – with a value of over €18 million ($17.5 million).

• A pilot project refurbishment of the 220/110/20kV Alba Iulia station – a digital station concept – with a value of approximately €47 million ($49.6 million)

• Construction of a 400kV LEA (double circuit) Constanța Nord – Medgidia Sud, equipped with a single circuit – with a value of approximately €23 million ($22.3 million)

• Construction of a new 400kV Gădălin – Suceava single-circuit LEA, including its interconnection to the national electricity transmission system – with a value of over €101 million ($98 million)

• Internal line between Reșița and Timișoara/Săcălaz (PCI 3.22.3.), consisting of a new 400kV LEA Reșița-Timișoara/Săcălaz and in the 400kV refurbishment of the 110/2020 kV Timișoara substation – with a value of approximately €64 million ($62.1 million)

• Construction of the 400kV LEA Timișoara/Săcălaz/Arad – with a value of over €57 million ($55.3 million)

• Switching to the 400kV voltage of LEA Brazi Vest-Teleajen-Stâlpu – with a value of about €51 million ($49.5 million)

• Installation of two modern reactive power compensation means in the 400/220/110/20kV Sibiu South substations of 400/220/110/20kV Bradu – with a value of over €52 million ($50.5 million)

• Optimisation of the operation of the existing 400kV LEA in the SEN, used in interconnection and for the evacuation of power from the Cernavodă nuclear power plant and the power plants from renewable sources in Dobrogea This will be done by installing online, smart grid-esque, systems with a value over €10 million ($9.7 million).

Ultimate benefits

According to the country’s energy ministry, the major benefits of these investments will include:

• Increased transmission capacity by approximately 1700MW
• Approximately 480km of new overhead power lines
• Expansion of five electrical stations with a voltage level of 400kV
• Digital re-engineering – a first for Romania – of the Alba Iulia Station
• Increasing interconnection capacity by 600MW (cumulative on the borders with Serbia and Hungary)
• Electricity quality monitoring systems in 15 stations

The Modernisation Fund is a financing instrument made up of the revenues obtained by auctioning on the market 2% of the total greenhouse gas emissions certificates, based on the provisions of the EU-ETS Directive and has, as an implementation period, the 2021 timeframe -2030.


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