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Romania has drafted a program for local authorities and district heating systems to invest in green energy and energy efficiency.
The Ministry of Energy launched a public debate on a proposed executive order for the establishment of a national investment program called Green Energy. The plan would be implemented in the period 2024-2030. It is valued at RON 4 billion (EUR 804 million).
According to the announcement, the aim of the scheme is to support local authorities and operators of district heating systems.
Municipalities need regular funding to ensure safe, affordable and green energy for citizens and to increase the quality of life in their communities, the Ministry of Energy added.
The program has two major components
Romania cannot rely only on funding from the European Union, so the government has decided to introduce a multi-year program through which public institutions and heat producers would be able to finance projects for green energy and energy efficiency and the construction, modernization and development of district heating and cooling systems, the ministry said.
The mechanism would consist of two components. It would be financed from green bond issues that the Ministry of Finance is preparing, Minister of Energy Sebastian Burduja said.
The first of two components is dedicated to municipalities within the European program 100 climate-neutral and smart cities by 2030.
The first segment is estimated at RON 1.5 billion (EUR 301.4 million). It is for municipalities included in the EU Mission on Climate-Neutral and Smart Cities program for 100 local authorities until 2030.
The funds would be used for green energy and energy efficiency measures, approved by the European Commission, from the cities’ climate action plans, the ministry explained.
The other item, RON 2.5 billion (EUR 502.4 million), is intended for local authorities and district heating systems.
The program represents an important step in Romania’s transition towards a safe, affordable and green energy system, according to the ministry.
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