The Modernisation Fund

The Modernisation Fund was established as a financing mechanism by Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Union and amending Directive 96/61/EC (hereinafter referred to as the ETS Directive).

In Romania, the Modernisation Fund shall finance investments in the priority sectors referred to in Article 3(3)(a) and (b) of the Directive. 5 of the Emergency Ordinance no. 60/2022 on the establishment of the institutional and financial framework for the implementation and management of the funds allocated to Romania through the Modernisation Fund, as well as for the amendment and completion of certain normative acts and is implemented through the key programmes contained in Art. 3, para. 6 of GEO no. 60/2022, with each key programme defining one or more investment areas.

This project is implemented through the Modernisation Fund - 3 MODERNIZATION AND CONSTRUCTION OF NEW ENERGY INFRASTRUCTURE TRUNKS - 3.2 Energy Infrastructure - Support for the extension and modernisation of the electricity distribution network;

Call: Non-competitive procedure to support investments for the extension and modernisation of the electricity distribution network.

The budget allocated to the call for projects is 1.103.442.829 euro by COM Decision No MF 2022-1 RO 0- 017/23.05.2022. Funding for projects under this call is non-reimbursable and consists of the reimbursement of eligible expenses incurred for the implementation of the project at the amount and under the conditions set out in the Grant Contract. The estimated public support from the Modernisation Fund is 80% of the eligible expenditure.

Muntenia
Banat
Dobrogea

Increasing the security of electricity supply to Dascălu and Petrăchioaia localities, by upgrading the Petrăchioaia line, Jud. Ilfov

Project name: "Increasing the security of electricity supply to Dascălu and Petrăchioaia localities, by upgrading the Petrăchioaia line, Jud. Ilfov"

Total amount, reflecting the percentage of funding by FM:

- The total value of the project is 76.459.876,11 RON, including VAT;

- The maximum amount secured from the Modernisation Fund is 80% of the eligible expenditure, i.e. 50.578.291,16 RON;

- The amount provided by the beneficiary (EDM/REM) is 25.891.584,95 RON, including VAT.

Location, with identification of each investment:

- The project will be implemented in the SUD region, Ilfov county. The location of the investment objective is almost the entire radius of Dascălu and Petrăchioaia and certain parts of the radius of Ștefănești and Afumați, in and around the villages, on the public domain, along the roads. The land on which the works are to be carried out belongs to the public domain of Dascălu, Petrăchioaia, Ștefănești and Afumați.

The main activities of the project

The investment project has the following components:

- Component C1: Modernization of the 20 kV Petrăchioaia LE, including reconfiguration of the route and increase of reliability by transforming the LEA into LES.

- Component C2: Modernisation, establishment, reconfiguration of PTs. Conversion of existing Transformer Stations into fully equipped (new) PTABs. Integration of new or reconfigured PTABs into the LV distribution network. The related MV and LV networks will be reconfigured.

- Component C3: Upgrade of PTs, including installation of telecontrol equipment and integration into SCADA/ADMS. Expansion and upgrading of the communication network and transition to (more) secure fibre optic communications. Extension of the monitoring of the JT network for the quality of energy delivered to consumers.

- Component C4: Fitting out technical premises and securing operation and access to electrical installations. Installation of anti-burglary systems in all Transformer Substations of the area of interest (applicability of the Project).

The implementation of the above mentioned components aims at the following aspects:

- Reduction of operating costs, which is a performance parameter, imposed by ANRE, and influences the costs included in the distribution tariff, paid by consumers;

- Increased distribution capacity and reliability for the upgraded MV and LV network and the supply of energy at European standards;

- Increasing continuity of service and reducing the effects of unplanned outages. Reduction of service interruption times and the number of disturbances/incidents due to equipment failures during service as a result of overload or other causes due to imbalances in consumption and planning of these parameters, at network level;

- Reduction of technical losses and more efficient use of energy by introducing remote control and integration of the MV/LV network into centralised monitoring, command and control systems (ADMS / SCADA).

- Reconfiguration of the MV distribution network, moving the MV network from overhead to underground where possible, and rerouting of cable routes in the public domain, which ensures better accessibility to networks for interventions and maintenance;

- Increasing grid intelligence, extending grid monitoring and integration into the centralised remote control system (SCADA/ADMS), allowing direct, automated and high performance management of electricity distribution;

- The use of video surveillance of targets to deter vandalism of installations of any kind and to assist in the diagnosis of possible malfunctions in extreme weather conditions.

Project Indicators:

Crt. no.	INDICATOR	Value at the beginning of the implementation period (average 2014-2021 )	TARGET VALUE at the end of the implementation period
1.	SAIDI reduction [minutes/consumer]	0,408	0,359
2.	SAIFI reduction [number of interruptions/consumer]	0,014	0,012
3.	CPT reduction (technical) [MWh/year]	722,28	361,14
4.	CO2 emission reduction [tonnes/year]		Cca. 119
5.	Number of new consumers that can be connected	0	Cca. 76
6.	Number of new producers that can connect	0	Cca. 735

Contact details for various comments/questions regarding the implementation of the project:

- fonduri_europene@e-distributie.com

Switching to 20 kv distribution networks fed from 110/20/10 kv Cetate and Fratelia stations

Project name: "Upgrade to 20 kv distribution networks fed from 110/20/10 kv Cetate and Fratelia stations".

Total amount, reflecting the percentage of FM funding:

- The total value of the project is 46.330.089,48 RON including VAT;

- The maximum amount secured from the Modernisation Fund is 80% of the eligible expenditure, i.e. 30.647.534,14 RON;

- The amount provided by the beneficiary (E-Distribution Banat SA) is 15.682.555,34 RON, including VAT.

Location:

- The project will be implemented in the North-West area of Timișoara Municipality. The location of the investment objective is in the inner city of Timișoara, on land belonging to the public or private domain. The planned upgraded 20 kV LES lines will be laid on the routes between the two transformer stations (Cetate and Fratelia), respectively between the PTs included in the routes of the two lines.

Main activities of the project

The investment project has the following components:

- Component C1: Upgrade of MV lines, looping between ST Cetate (110kV/20kV) and ST Fratelia (110kV/20kV). Establishment of a new connection point (PC, 20kV-20kV).

- Component C2: Upgrading of electrical installations in PTs, including upgrading of equipment and expansion of distribution capacities. Conversion of existing transformer substations into fully equipped (new) PTABs. Integration of the new PTABs into the LV distribution network. The related MV and LV networks will be reconfigured.

- Component C3: Upgrading of PTs, including installation of telecontrol equipment and integration into SCADA / ADMS. Expansion and upgrading of the communication network and transition to (more) secure fibre optic communications. Expansion of the monitoring of the JT network for the quality of energy delivered to consumers.

- Component C4: Fitting out of technical premises and securing operation and access to electrical installations, including building renovations and installation of burglar alarm systems (at all TPs in the area of application - 23 TPs, 1 CP).

Through the implementation of the project "Transition to 20 kV distribution networks fed from 110/20/10 kV Cetate and Fratelia stations" investments in energy infrastructure will be made in order to reduce losses in the network and provide safe and continuous electricity distribution services.

The objectives of the project linked to those of the Modernisation Fund are:

- Upgrade the Medium Voltage (MV) lines between Cetate Transformer Station (ST) (110kV/20kV) and ST Fratelia (110kV/20kV) and establish a 20kV-20kV Connection Point;

- Upgrading of electrical installations in the Transformer Stations (PT), including upgrading of equipment and expansion of distribution capacity in the project area;

- Upgrading of Transformer Substations, installation of telecontrol equipment and integration into SCADA / ADMS. Expansion, upgrading of communication network and transition to (more) secure fibre optic communication. Expansion of modernization by monitoring JT network with quality analyzers.

These objectives contribute to the improvement of SAIDI and SAIFI indicators in the project area, in the sense of reducing them by 5% compared to the average of 2014-2021. The project objectives also contribute to the reduction of the annual (technical) CPT by 50% for the MV ST Cetate/Fratelia network compared to the average of 2014-2021.

Project Indicators:

Crt. no.	INDICATOR	Value at the beginning of the implementation period (average 2014-2021 )	TARGET VALUE at the end of the implementation period
1.	SAIDI reduction [minutes/consumer]	0,292	0,277
2.	SAIFI reduction [number of interruptions/consumer]	0,018	0,017
3.	CPT reduction (technical) [MWh/year]	555	278
4.	CO2 emission reduction [tonnes/year]	183	Cca. 92,4 tone
5.	Number of new consumers that can be connected	0	Cca. 157
6.	Number of new producers that can connect	0	Cca. 1.212

Contact details for various comments/questions regarding the implementation of the project:

- fonduri_europene@e-distributie.com

Upgrading of MV and LV distribution network in CENAD – Timiș county

Project name: "Upgrading of MV and LV distribution network in CENAD – Timiș county"

The total amount, reflecting the percentage of FM funding:

- The total value of the project is 58.033.824,26 RON, including VAT;

- The maximum amount secured from the Modernisation Fund is 80% of the eligible expenditure, i.e. 34.451.068,65 RON;

- The amount insured by the beneficiary (Rețele Electrice Banat SA) is 23.582.755,60 RON, including VAT.

Location:

The location of the investment objective is in the inner urban area of Cenad, Timiș county, on land belonging to the public or private domain. The upgraded lines, LES 20 kV, LES JT designed/reconfigured, will be laid on the streets and access roads, respectively between the PTs included in the route of the 20 kV line.

The main activities of the project:

The investment project has the following components:

- Component C1: Upgrading of the Mureș MV Pump Line, starting from Sânnicolau Mare Station, from which the eight (8) PTs in Cenad will be supplied.

- Component C2: Modernisation of the PTAs by replacing them with new PTABs, including the extension of the distribution capacity. Integration of the new PTABs into the MV distribution network. The related MV and MV networks will be reconfigured. Eight (8) existing PTAs will be decommissioned.

- Component C3: Upgrade PTs (digitization), including installation of telecontrol equipment and integration into SCADA / ADMS. Expansion of the monitoring of the JT network for the quality of energy delivered to consumers, by installing quality analyzers in each PTs. Securing operation and access to electrical installations, and installation of burglar alarm systems (at all PTABs in the area of application - 8 posts). Preparing the infrastructure for the transition to secure fiber-optic communications.

- Component C4: Upgrading of JV lines, by replacing uninsulated conductors with twisted insulated conductors and switching from LEA 0.4 kV to LES 0.4 kV in the central area of Cenad, as well as upgrading the connections of 1.629 consumers to JV. Installation of distribution and metering fuses on the socket, as well as measuring and protection blocks on the socket.

- Component C5: Rehabilitation of distribution columns, for the 1.629 JT consumers whose metering groups have been removed at the property boundary. Through the implementation of the project "Upgrading of MV and LV distribution network in CENAD – Timiș county", investments will be made in the energy infrastructure in order to reduce losses in the network and to provide safe and continuous electricity distribution services.

The objectives of the project linked to those of the Modernisation Fund are:

- The present project aims to reconfigure the 20 kV network by switching the 20 kV Pompe Mureș LEA to 20 kV LES, over a length of approx. 8.65 km, and the refurbishment of eight (8) PTs in concrete rings with the corresponding connections to the MV LSS, respectively the modernization of the 0.4 kV LEA on a length of approx. 43 km, the transition of LEA JT to LES JT, over a length of approx. 2,92 km, in the central area of the town and the modernisation of 1.629 connections and the rebuilding of the related consumer columns;

- Upgrading of MV line (20kV), upgrading of LV lines and connections, installation of PTABs, upgrading of PTs;

- Inclusion of monitoring and control equipment, on medium/low voltage, likely to be integrated in SCADA/ADMS (modern automation equipment) in PTAs converted into PTABs;

- Extending the monitoring of the JT network with delivered power quality analysers, aimed at managing compliance with the performance standards imposed by ANRE and ensuring the quality of power delivered to consumers in accordance with European standards;

- Ensure conditions for digitisation of the measurement of energy consumption up to the final consumer (introduction of smart metering).

These objectives contribute to the improvement of SAIDI indicators in the project area by approx. 0,031 min/customer/year (estimated), at medium voltage (20kV). The project objectives also contribute to reducing the CPT by approx. 148,89 MWh/year (estimated), compared to the period before the upgrade.

Project indicators:

Crt. no.	INDICATOR	TARGET VALUE at the end of the implementation period
1.	SAIDI reduction [minutes/consumer]	0,031
2.	CPT reduction (technical) [MWh/year]	148,89
3.	CO2 emission reduction [tons/year]	approx. 35,79
4.	Number of new consumers that can be connected	approx. 29
5.	Number of new producers that can connect	approx. 1.629

Increasing the security of supply to consumers in the Trei Ape recreational area by looping the 20 kV Valiug LEA, from Mociur station, with the 20 kV Slatina Timiș LEA, from Balta Sărată station

Project name: "Increasing the security of supply to consumers in the Trei Ape recreational area by looping the 20 kV Valiug LEA, from Mociur station, with the 20 kV Slatina Timiș LEA, from Balta Sărată station"

Total value, reflecting the percentage of funding from the Modernisation Fund:

- The total value of the project is 57.666.028,14 RON, including VAT;

- The maximum amount secured from the Modernisation Fund is 80% of the eligible expenditure, i.e. 37.805.230,21 RON;

- The amount insured by the beneficiary (E-Distribution Banat SA) is 19.860.797,93 RON, including VAT.

Location:

The proposed investment will be located in Caraș-Severin county.

The area of applicability of the project covers:

- 110/20/6 kV Mociur transformer station, located in Reșița;

- 110/20/6 kV Balta Sărată transformer station, located in Caransebeș;

- Timis Trei Ape substation, which through its 11 PTs serves a total of 622 low voltage customers in the area of Brebu Nou, Gărâna and the recreational area of Trei Ape lake.

The main activities of the project:

The investment project has the following components:

- Component C1: Upgrading of MV lines, including looping of 20kV Slatina Timiș LEA with Brebu Nou - Gărâna LEA and 20 kV Valiug LEA, establishment of a new transformer substation (PT, 20kV-6kV), as well as decommissioning of 7.8 km of Brebu Nou - Garâna LEA and restoration of the environment.

- Component C2: Upgrading of electrical installations in PTs, including upgrading of equipment and expansion of distribution capacity. Conversion of existing transformer substations into fully equipped (new) PTABs. Integration of the new PTABs into the LV distribution network. The related MV and LV networks will be reconfigured.

- Component C3: Upgrading of PTs, including installation of telecontrol equipment and integration into SCADA / ADMS. Expansion and upgrading of the communication network and transition to (more) secure fibre optic communications. Expansion of the monitoring of the JT network for the quality of energy delivered to consumers.

- Component C4: Securing operation and access to electrical installations, and installation of burglar alarm systems (at all PTABs in the area of application - 9 posts). Through the implementation of the project "Switching to 20 kV distribution networks fed from 110/20/10 kV Cetate and Fratelia substations" investments in energy infrastructure will be carried out in order to reduce network losses and provide safe and continuous electricity distribution services.

The objectives of the project linked to those of the Modernisation Fund are:

- Upgrade medium voltage (MV) distribution networks;

- Establishment of PT (20kV-6kV);

- Modernisation of electrical installations in PTs, including equipment modernisation and expansion of distribution capacities;

- Modernisation of PTs through the installation of remote control equipment and integration into SCADA / ADMS, modernization of communications network and transition to (more) secure fiber optic communications, modernization through monitoring of JT network with quality analyzers;

- Fitting out technical premises and securing operation and access to electrical installations, including renovations to buildings and inclusion of burglar alarm systems.

These objectives contribute to the improvement of SAIDI indicators in the project area, reducing them by 5%, 10% and 20% respectively. Thus, a reduction of approx. 165 minutes/customer /year, compared to the period before the upgrade, for the Brebu Nou - Gărâna customer group. The objectives of the project also contribute to the reduction of CPT by approx. 13MWh/year, compared to the period before modernization.

Project indicators:

Crt. no.	INDICATOR	TARGET VALUE at the end of the implementation period
1.	SAIDI reduction [minutes/consumer/year]	165
2.	CPT reduction (technical) [MWh/year]	13
3.	CO2 emission reduction [tonnes/year]	approx. 4,433
4.	The number of new consumers that can be connected	approx. 77
5.	The number of new producers that can connect	approx. 622

Contact details for various comments/questions regarding the implementation of the project:

- fonduri_europene@e-distributie.com

Development, modernization and systematization of medium voltage electrical installations related to the Năvodari 110/20kV transformer station, in order to distribute and supply electricity at the quality level in accordance with the performance standard

Project name: "Development, modernization and systematization of medium voltage electrical installations related to the Năvodari 110/20kV transformer station, in order to distribute and supply electricity at the quality level in accordance with the performance standard"

Total amount, reflecting the percentage of FM funding:

- The total value of the project is 47.709.307,08 RON including VAT;

- The maximum amount secured from the Modernisation Fund is 80% of the eligible expenditure, i.e. 31.499.799,63 RON;

- The amount provided by the beneficiary (EDD/RED) is 16.209.507,45 lei, including VAT.

Location, with identification of each investment:

- The project will be implemented in the South-East region, Constanta county. The location of the investment objective is almost the entire area of Năvodari, in the urban and rural areas of the town (southern part), on the public domain, along the roadways. The land on which the works are to be carried out belongs to the public domain of Năvodari.

The main activities of the project

The investment project has the following components:

- Component C1: Upgrading of MV lines, type of departures from ST Năvodari (110kV/20kV).

- Component C2: Modernisation, establishment, relocation of PTs.

- Component C3: Integration of new PTABs into the LV network.

- Component C4: Preparing for the introduction of new communication technologies for digital remote monitoring and command/control system. Extension of the monitoring of the JT network for the quality of the energy delivered to the consumers.

The above-mentioned components are intended to achieve the following:

- Reducing operating expenses, which is a performance parameter, imposed by ANRE, and influences the costs included in the distribution tariff, paid by consumers;

- Increased distribution capacity and reliability for the upgraded MV and LV network and the supply of energy at European standards;

- Reconfiguration of the MV distribution network, moving the MV network from overhead to underground where possible, and rerouting of cable routes on the public domain, ensuring better accessibility to the networks for interventions and maintenance;

- Increased grid intelligence, extended grid monitoring and integration into the centralised remote control system (SCADA/ADMS), allowing direct, automated and high performance management of electricity distribution;

- The use of video surveillance of targets to deter vandalism of installations of any kind and to assist in the diagnosis of possible malfunctions in extreme weather conditions.

Project Indicators:

Crt. no.	INDICATOR	Value at the beginning of the implementation period (average 2014-2021 )	TARGET VALUE at the end of the implementation period
1.	SAIDI reduction [minutes/consumer]	3,01	2,65
2.	SAIFI reduction [number of interruptions/consumer]	0,114	0,010
3.	CPT reduction (technical) [MWh/year]	1.936,67	1.704,27
4.	CO2 emission reduction [tonnes/year]	0	Cca. 79,13
5.	Number of new consumers that can be connected	0	Cca. 427
6.	Number of new producers that can connect	0	Cca. 971

Contact details for various comments/questions regarding the implementation of the project:

- fonduri_europene@e-distributie.com

Modernization of L4205 and improvement of the quality of distribution service in the area of Valu Lui Traian and Murfatlar, Constanța County

Project name: "Modernization of L4205 and improvement of the quality of distribution service in the area of Valu Lui Traian and Murfatlar, Constanța county"

The total amount, reflecting the percentage of funding from the Modernisation Fund:

- The total value of the project is 52.320.289,59 RON, including VAT;

- The maximum amount secured from the Modernisation Fund is 80% of the eligible expenditure, i.e. 34.667.270,79 RON;

- The amount provided by the beneficiary (E-Distribution Dobrogea) is 17.653.018,80 RON, including VAT.

Location, with identification of each investment:

- The proposed investment will be located in Constanța County;

- The location of the investment objective is almost all over Murfatlar and Valu lui Traian, on the public domain, along road traffic routes. The land on which the works will be carried out belongs to the public domain of Murfatlar and Valu lui Traian. Murfatlar and Valu lui Traian are located in the central-eastern part of Constanța County, Murfatlar being crossed by the Danube-Black Sea Canal.

The main activities of the project:

The investment project has the following components:

- Component C1: Upgrading of MV line, starting from ST Basarabi.

- Component C2: Modernization, establishment, and reconfiguration of PTs.

- Component C3: Integration of new PTABs into the JV network.

- Component C4: Preparing the introduction of new communication technologies for the digital remote monitoring and command/control network system. Upgrade extension by monitoring JT network with quality analyzers.

The objectives of the project, linked to those of the Modernisation Fund, are:

- Modernization of medium voltage (MV) power line 4205, starting from Basarabi Transformer Station (TS) (110kV/20kV). Modernization, establishment, network reconfiguration (including PTs);

- Extension (reconfiguration) of MV/LV distribution networks;

- Modernisation, establishment, and reconfiguration of PTs;

- Integration of new PTABs into the LV network;

- Preparing the network for the introduction of new communication technologies, for digital monitoring and remote network control/command system. Extension of the modernization by monitoring the JT network with quality analyzers.

These objectives contribute to the improvement of SAIDI and SAIFI indicators in the project's area of applicability, in the sense of reducing them by 25%, for the years of the monitoring period, compared to the 2019-2021 average. The project objectives also contribute to a 15% reduction in CPT (technical), for the years of the monitoring period, compared to the 2019-2021 average.

Project indicators:

Crt. no.	INDICATOR	TARGET VALUE at the end of the implementation period
1.	SAIDI reduction [minutes/consumer/year]	0,147
2.	CPT reduction (technical) [MWh/year]	1.042,49
3.	CO2 emission reduction [tonnes/year]	approx. 75,14
4.	The number of new consumers that can be connected	approx. 179
5.	The number of new producers that can connect	approx. 748

Contact details for various comments/questions regarding the implementation of the project:

- fonduri_europene@e-distributie.com