The European Investment Bank (EIB) is providing a 200 million euro loan to Distribuție Energie Electrică România (DEER), the distribution operator of the Electrica Group, to modernise its electricity distribution network, which covers 40% of Romania’s territory and serves around 4 million households and businesses.

The loan, which can be paid in euros or lei, will help DEER better serve its customers, improve energy efficiency and facilitate the connection of renewable energy sources.

“Our investment reduces the risks of supply disruptions and contributes to energy efficiency and sustainability,” said EIB Vice-President Ioannis Tsakiris.

“Electrica’s smarter and more resilient infrastructure will mean smoother operations for the businesses it serves, better living conditions for people and, overall, a greener environment for all.”

Romania’s electricity grid urgently needs investment to manage its aging infrastructure in the face of rising electricity demand. The operation aligns with the RePowerEU plan to support affordable, secure and sustainable energy for Europe and contributes to the Bank’s cohesion and climate action objectives.

“At a time when we need financing for our ambitious development, the EIB’s support is a clear signal to the market that we are reliable and competitive,” said Alexandru Chiriță, CEO of Electrica.

“We are also happy to contribute to Romania’s and the EU’s energy and climate plans.”