Romanian power grid operator Transelectrica said on Friday it plans to invest 4.1 billion lei ($1 billion/880 million euro) in network development by 2027. The investment plan will be proposed for approval to the shareholders of Transelectrica at a meeting on December 20, the company said in a statement.

Some 84% of the funding will come from regulated tariffs, while 11% will be obtained through allocation of interconnection capacity, and 5% from non-reimbursable funds. Of the total amount, 47% will be used for the refurbishment of Transelectrica’s transformation stations, 35% for increasing the interconnection capacity, 11% for increasing the transport capacity of Dobrogea production, 3% for increasing the transport capacity in other zones and 4% to increase consumption capacity, according to seenews.com. Transelectrica booked a net profit of 98 million lei in the first nine months of 2018, up 51% on the year. Last month, Fitch Ratings affirmed Transelectrica’s long-term issuer default rating at ‘BBB’ with a stable outlook. In September, Transelectrica completed the second stage of the 400/110/20 kV Tulcea Vest substation refurbishment project following a 100 million lei investment. At the end of July, Transelectrica completed the upgrade of its Suceava station following a 24 million lei investment from its own funds. The Romanian finance ministry owns some 59% of Transelectrica.