This loan is part of a €200 million syndicated loan, alongside three local lenders, aimed at modernizing and digitalizing the electricity distribution networks in Southeast and Western Romania to accommodate increased renewable energy capacities better.
The syndicated loan, involving ING Bank, Banca Comerciala Romana, and Banca Transilvania, will indirectly support Romania's ambitious goal of increasing the share of renewable electricity in its energy mix to 36.2% by 2030, adding 11.9 GW of new capacity.
The network upgrades will improve energy efficiency and reduce distribution grid losses, saving approximately 31,800 tonnes of carbon dioxide equivalent emissions annually. They will also include the installation of nearly half a million smart meters for end-users by 2025.
As a member of the European Union (EU), Romania is committed to the EU's Fourth Energy Package, “Clean Energy for all Europeans,” which aims to modernize the EU electricity market, making it more flexible and better able to integrate more renewable energy.
The three companies involved in this project – Retele Electrice Banat, Retele Electrice Dobrogea, and Retele Electrice Muntenia – are ultimately owned by Public Power Corporation SA, an existing client of the EBRD, in which the Bank holds a 2.2% minority stake.
George Gkiaouris, EBRD's Regional Head of Energy for Southeast Europe, stated, “We are pleased to support PPC Romania in implementing priority investments in Romania's distribution grid. The project will enhance the grid's reliability and efficiency and support Romania's green energy transition.”
The EBRD, a leader in climate finance, has facilitated the implementation of renewable energy auctions across its countries of operation. The EBRD has invested almost €11 billion in 524 projects in Romania. Its current strategy for Romania prioritizes improving the quality of sustainable infrastructure.
