Romanian Minister of Energy Sebastian Burduja has unveiled a list of priority investment proposals for financing through the Modernization Fund, which will be sent to the European Investment Bank (EIB). The Ministry of Energy has initiated three of these priority proposals, with additional proposals from the Ministry of Transport and Infrastructure and the Ministry of Agriculture and Rural Development.
Minister Burduja emphasized that these projects will enhance Romania’s energy sector security and lead to better prices for consumers. While energy bills are capped until April 1, 2025, it is crucial for Romania to bring as much new or upgraded capacity online as possible and complete ongoing projects by then. To achieve this, Romania aims to set a record for the swift evaluation and contracting of projects, with all related contracts expected to be signed by the end of the year.
Romania’s priority investment proposals are:
- Development of flexible gas production capacities: A state aid scheme to support the development of high-efficiency cogeneration (CHP) plants in the district heating sector, with a requested payment of €362 million.
- Electricity storage capacities: A state aid scheme to support investments in electricity storage capacities, with a requested payment of €150 million.
- Renewable energy for self-consumption (public sector): Supporting investments in new renewable energy production capacities for public sector self-consumption, with a request for the first installment of €160 million (out of a total of €200 million).
- Renewable energy for self-consumption (airfields): A state aid scheme for new renewable energy production capacities for airfields and energy storage systems, with a request for the first installment of €70 million (out of a total of €200 million).
- Renewable energy for agricultural enterprises: Supporting investments in renewable energy production for the self-consumption of agricultural enterprises and the food industry, with a request for the second installment of €50 million (out of a total of €500 million).
Funding from the Modernization Fund depends on the investment proposals evaluated by the EIB. After analysis and recommendations, the Investment Committee of the Modernization Fund approves the financing. The committee meets twice a year, and Romania is preparing its project portfolio for the upcoming autumn session, scheduled for October 22, 2024.
