Electricity

E.ON to invest EUR 2.2 billion in electricity, gas grids in Romania

delgaz grid investments grids prosumers

Photo: Delgaz Grid

Published

March 9, 2023

Country

Comments

0

Share

Published:

March 9, 2023

Country:

Comments:

0

Share

E.ON’s Romanian subsidiary Delgaz Grid plans to invest EUR 2.2 billion in its electricity and gas networks.

Delgaz Grid, part of Germany-based E.ON Group, said it intends to secure EUR 700 million in European funds and add its own EUR 1.5 billion. The firm pointed out that it expects an increase in consumer tariffs.

The investment is aimed at modernizing, expanding, automating and digitalizing the electricity and natural gas networks, the distribution company said.

Delgaz Grid operates a natural gas network with a length of 24,000 kilometers and an 83,000-kilometer electricity network, with a total of three million customers.

Grids must be prepared for the European Green Deal and Fit-for-55 packages

The firm revealed that it earmarked EUR 185 million in capital expenditures for this year or 36% more than for 2022 and the most since E.ON Group entered Romania 18 years ago.

According to Delgaz Grid, the two distribution grids require billions of euros of investments by 2030 to enable the achievement of the goals set in the European Green Deal and Fit-for-55 packages.

Number of prosumers to reach 10,000 by the end of year

Renewables are essential as the cheapest and cleanest energy available, but the grid must be capable to integrate them, Delgaz Grid said and added that the number of prosumers in its network is surging.

Only 67 were connected at the end of 2020. The number reached 5,500 in 2022 and E.ON’s subsidiary announced that it expects to have at least 10,000 prosumers connected by the end of this year.

Of note, Romania expects the total number of prosumers to reach 100,000 in 2023.

Distribution tariffs are a key element for stimulating investments

Delgaz Grid will have to upgrade parts of the grid constructed in the 1970s and 1990s, but also to invest in cybersecurity and the construction of hydrogen-ready facilities as well as in network expansion and adding consumers.

Distribution tariffs are a key element for stimulating investments, which, in addition to the direct benefits for consumers, have a multiplier effect on the country’s economy, the firm stressed.

Delgaz Grid has called on the authorities to amend and apply the legislation for tariffs for the distribution of natural gas and electricity.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

BiH entities set establishment of power exchange as priority

BiH entities agree that establishing power exchange is priority

29 February 2024 - Energy ministers Petar Đokić from the Republic of Srpska and Vedran Lakić from the Federation of BiH have met in Banja Luka

OMV Petrom EU funding two green hydrogen plants

OMV Petrom obtains EU funding for two green hydrogen plants

29 February 2024 - OMV Petrom is stepping up its decarbonization efforts with projects for two green hydrogen production units at its Petrobrazi refinery

Kacır Turkey is No 1 producer of solar panels in Europe

Kacır: Turkey is No. 1 producer of solar panels in Europe

29 February 2024 - Turkey will continue incentives for renewables and roll out an emissions trading system, Minister Mehmet Fatih Kacır said

eps-electricity price dusan stanar

Will Serbia’s EPS reduce electricity prices in May?

29 February 2024 - Almost all companies in Serbia are paying EUR 120 per MWh for electricity, significantly above current market prices