The European Commission approved, on Tuesday, based on the EU norms regarding the state aids, Romania’s plans to support the modernization of the district heating system of Bucharest, informs a press release of the community Executive.

“This EUR 254 million aid measure, funded through the EU’s structural funds, will help Romania achieve its energy efficiency targets and help reduce emissions of greenhouse gases and other pollutants, without unduly distorting competition,” said European Commission’s vice president, Margrethe Vestager, according to Agerpres.

Romania presented to the Commission the plan to grant public aid amounting to approximately 254 million euro (1.208 billion lei) for the rehabilitation of the distribution network (especially of the pipes through which the hot water reaches the main distribution points) of the district heating system in Bucharest urban area. The expected support will be provided in the form of a grant directly financed from the EU structural funds managed by Romania.

In terms of size, the district heating system in Bucharest is the first in the EU and the second in the world, serving 1.2 million inhabitants through about 940 km of thermal pipes for the transmission system and 2,800 km of pipes for the distribution system. The rehabilitation of the district heating system of Bucharest will consist in the replacement of some sections of the main hot water transport pipes, representing approximately 10% of the total length of the network. This investment will reduce heat and water losses, as well as other types of losses, generating lower network maintenance costs. Therefore, the measure will contribute to energy savings and the reduction of emissions of greenhouse gases and other pollutants.