Romania and Bulgaria are launching the CARMEN Smart Grid project with European support, with Transelectrica partnering with Delgaz Grid and ESO on a cross-border electricity modernization initiative. The programme is designed to improve regional electricity infrastructure and support the transition toward cleaner energy systems. The financing agreement for the project, valued at approximately €207 million, was signed on 22 May in Copenhagen during the Energy Infrastructure Forum. The agreement was finalised with representatives of the European Climate, Infrastructure and Environment Executive Agency in the presence of senior officials from the European Commission.
EU funding structure under Connecting Europe Facility
European financing will contribute nearly €104 million to the initiative through the European Union’s Connecting Europe Facility, which supports Projects of Common Interest. The remaining amount will be provided directly by participating companies. Delgaz Grid, part of the E.ON group in Romania, will manage investments worth €77.5 million, with almost €39 million covered by EU grants. Transelectrica will invest around €70.7 million, supported by approximately €35.4 million in non-reimbursable European financing.
ESO’s investment share amounts to €59.3 million, with €29.6 million financed through European support. The CARMEN initiative is described as the first Smart Grids Project of Common Interest in Romania to receive European financial backing for modernising both transmission and distribution electricity networks. The project’s stated objective is to strengthen infrastructure using advanced digital technologies while enabling greater integration of renewable generation into the regional power system.
Network automation, monitoring and cross-border capacity upgrades
The planned scope includes network automation and modernization of existing infrastructure. Advanced monitoring systems are also scheduled to be installed to improve reliability, operational flexibility and overall energy security. The project will additionally increase cross-border electricity exchange capacity between Romania and Bulgaria by reducing network congestion and enhancing interconnection capabilities.
Technologies expected to be deployed include Dynamic Line Rating systems, FACTS equipment and real-time monitoring solutions. These tools are intended to support supply stability while enabling transmission and distribution operators to coordinate more efficiently through shared digital platforms and improved data exchange systems.
Role in renewable integration and EU decarbonisation strategy
The broader aim of CARMEN is aligned with European climate objectives through improved renewable energy integration and increased energy efficiency. The initiative also focuses on developing infrastructure capable of supporting the European Union’s long-term decarbonization strategy.
