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Transelectrica will start 22 new investments in 2025

4 December 2024
Electricity
energynomics

The national electricity transport company has intensified the program of modernization and development of the energy infrastructure, considering essential objectives for energy security and the integration of renewable energies in Romania. In order to speed up strategic projects, Transelectrica, in collaboration with the Ministry of Energy, aims to simplify the procurement and authorization processes. Beyond the major investments, Ștefăniță Munteanu, the president of the Transelectrica Directorate, referred to the digitalization of the stations and the increase of the interconnection capacity.

 

Ștefăniță Munteanu, the president of the Transelectrica Directorate

In order to be able to talk about future investment goals, I think we should also take a look at what has been built so far. In the last two to three years, we have greatly accelerated the pace of investment in the network, be it new power lines, re-wiring to increase transmission capacity, re-engineering and modernization of stations. Certainly, the modernization of the energy infrastructure is urgent and we are more than aware of this because we are talking about Romania’s energy security. It is mandatory to increase the interconnection capacity with neighboring states, the capacity to connect new energy production units, especially renewable energy. We have the obligation to ensure the conditions for an efficient, functional and integrated energy market and last but not least the safety in operation and operation of the electric transmission network.

For the year 2024, for example, we had an investment program of around 106 million euros, on-going investments and new investments. For comparison, in 2023 the investment program had a value of 93 million euros, and for 2022 the value was around 90 million euros. An increase can be seen. During this period we are preparing the investment program for 2025, which I assure you will be of even greater value.

 

2025 – the year with the most projects under development

Based on our projections thus far, 2025 will be the year with the most projects under development: thirty sites for significant investments, of which twenty-two are new projects. We have finished 18 significant investment projects in the years 2022–2024; beginning at the end of 2024 and in 2025 we are opening construction sites for 22 new projects. I might argue that when Transelectrica marks its 25th anniversary, we will begin very significant investment projects aimed at transforming the electricity transmission network.

I would like to point out one important thing: the power transmission network currently consists of 81 electrical substations and approximately 9,100 kilometers of high-voltage electrical lines. To date, approximately 75% of our energy installations fleet has undergone a comprehensive re-engineering and modernization process, while the remaining 25% is either in the process of being re-engineered (including two projects of re-engineered digital concept stations, Mostiștea and Alba Iulia) or preparing for the initiation of re-technology and modernization processes. In addition, we are at an advanced stage with the procurement procedure for the construction of the 82nd station, the Ostrovu Mare station, which will facilitate the evacuation of energy from the Portile de Fier 2 hydropower plant, with the completion of the 220 kV Ostrov Overhead Power Line – RET. This line will be ready in May next year.

 

In two years we built 60% of the new lines in the last 20 years

As for high-voltage overhead power lines, 305 kilometers of 400 kV and 220 kV lines were built in the last two years, out of a total of 496 completed since the beginning of the 2000s, that is, in two years we have more than 60% of the achievements in terms of building new lines in the last 24 years. Specifically, we are talking about the 400 kV Cernavodă-Stâlpu Line, 160 kilometers, completed in 2022, the 400 kV Portile de Fier – (Anina) – Reșita Line, 117 kilometers, completed in 2024, and the connections at Medgidia Sud Station, 28 of kilometers of 400 kV power line completed in 2024.

What is even more important to say is that by 2030 we have over 740 kilometers of new overhead power lines in preparation, in various stages, or in the works. We are talking about projects with own financing or with European financing from the Fund for Modernization and Large Infrastructure Operational Program (POIM), projects totaling investments of over 380 million euros. In the last two years, we have accessed European funding both from the Modernization Fund and from the NRRP – the REPowerEU component, in a total amount of 582 million euros. In REPowerEU, with a value of 56 million euros, we have included 3 sub-investments, and two of them are intended for our subsidiaries SMART SA and Teletrans: the retrofitting of SMART SA, with an allocation of 18.24 million euros, and the optimization of the network of communications and the creation of a data center – Teletrans SA, with an allocation of 8.44 million euros. It is an extraordinary result, if we consider that obtaining these financings demonstrates the level of confidence in risk management and long- term performance of the company. But what’s more important is that beyond getting the funding, the work has really only just begun, because we have an obligation to spend all this money and without question that is our priority. All the projects for which funding was obtained are in various stages of procurement or work progress. Apart from that, we have the obligation to make these investments, because regardless of the funding source, they are very important investments for the National Electric Power System.

 

Institutional collaboration to accelerate large investments

However, our investment efforts do not depend only on the financial or implementation capacity of the company, but face a number of challenges determined by external factors.

That is why, in order to accelerate the strategic large energy infrastructure projects carried out by Transelectrica, together with the Ministry of Energy, we proposed a draft ordinance for the modification and completion of some normative acts in the field of investments regarding the electricity transmission network. The purpose of this ordinance is to facilitate the realization of projects of national importance, public investments of strategic importance for Romania that contribute to the implementation of Europe’s energy and climate objectives, in the sense of eliminating the gaps and delays generated in the course of aspects related to acquisitions, expropriations, authorizations and notices. It is clear that we all understood the importance of carrying out large energy infrastructure works and sat down at the table to find the best solutions to speed them up. We have a very good collaboration with all institutions and authorities, which creates favorable conditions for the transformation of investment programs from paper into construction sites on the ground.

Another challenge is the small number of designers and builders on the Romanian market, compared to the very large volume of work required to realize Transelectrica’s investment plans. We are working on a strategy to expand the market to suppliers outside Romania.

The development and investment plans follow 3 main axes: the refurbishment and modernization of energy installations, the integration of renewable energy and the increase of interconnection capacity. All current and future projects revolve around these 3 axes.

Network reinforcements are foreseen in areas with a strong development of renewable power plants, respectively: modernization of stations, construction of new overhead power lines (interconnection and internal), as well as reconnection of existing lines where it is not possible to build new lines.

On the other hand, we are focusing our electric transmission network development strategy around some key concepts mainly aimed at energy security and digitalization. Transelectrica’s current investment approaches include modern technologies in the industry, including HVDC cable direct current transmission solutions. Two such projects of international scope are analyzed: a project regarding a Georgia-Romania submarine cable, and a project on the territory of the country, from east to west. Both projects are proposed for analysis for TYNDP 2024, namely the Georgia-Romania Submarine cable, proposed by the transport and system operator from Georgia, and the Romania-Hungary HVDC Interconnector, proposed by Transelectrica.

 

Reșita, Arefu, Pelicanu and Bucharest Sud stations will be ready in 2025

As main objectives, we consider the modernization of digital systems in as many stations as possible, the increase of transport capacities in deficit areas, the evacuation of energy from congested areas, the implementation of modern digital concepts, the increase of transfer capacity on interconnections – and here I am specifically referring to the border with the Republic of Moldova, Hungary, Bulgaria and Ukraine, where we already have projects under discussion or even in the works. These objectives are also reflected in the 11 new investments introduced in the RET Development Plan for the period 2024-2033.

Practically, we will start significant initiatives for SEN’s safety in the next two years. First of all, at the beginning of next year, the refurbishment of the 400/220/110 kV Reșita Station will be ready, and at the beginning of the year we will also complete the refurbishment of the 400/220 kV Arefu station, which contributes to the operational safety of the Argeș-Vâlcea area. In the second semester of 2025, two other essential projects will be completed: the re-engineering of the 400/110 kV Pelicanu Station and the investment in the 400/220/110/10 kV Bucharest South Station to increase the degree of safety in supplying consumers in the southern area of The capital. And in 2026, in the second semester, we estimate the completion of the 400 kV Stâlpu station.

 

5 new construction sites, essential for the development of RET

Of course, the priority for Transelectrica is all the investments to increase the connection capacity, to increase the interconnection capacity with neighboring states, where we aim to reach 7,000 MW by 2030, and of course the investments to close the 400 kV ring.

The year 2025 will be the year in which we will start 5 extremely important construction sites for the development of the transport network and the achievement of the already mentioned objectives: the LEA section 400 kV Timișoara – Arad, part of the axis, the transition to 400 kV of the Portile de Fier Axis – (Anina) – Reșita – Timișoara – Săcălaz – Arad, project funded by the Modernization Fund; then the LEA 400 kV Gădălin-Suceava project, also financed from the Modernization Fund; LEA 400 kV Suceava-Bălți, the portion on Romanian territory; the transition to 400 kV of the Brazi Vest-Teleajen-Stâlpu axis, financed from the Modernization Fund; and last but not least the 82nd station of the Electric Transport Network: the 220 kV Ostrovu Mare Station. All these projects are currently in various stages of public procurement procedures. In 2025, many of the investment projects that have been talked about for many years only on paper will be initiated.

 

 

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The article first appeared in the printed edition of Energynomics Magazine in early December 2024.

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