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.