The Ministry of Energy launched two calls for projects to support investments in the modernization and rehabilitation of the district heating network, according to a press release of the institution.
Project calls are opened through the MySMIS2021 platform through a continuous submission procedure, until the total allocated budget is exhausted or until the submission deadline is met, whichever comes first, correlated with the performance framework of the Modernization Fund (FM).
“We saw a few weeks ago how tens or hundreds of thousands of Romanians are suffering of cold and lack of hot water in their homes. We didn’t just saw the problem, but we promised to work on a solution. We respected one more given promise. We are thus launching, through the Ministry of Energy, from the Modernization Fund, an appeal for 590 million euro, non-refundable, for the modernization of heating systems. Bucharest and other cities in the country will be able to invest in networks that are decades old, which will reduce maintenance bills for hundreds of thousands of Romanians and will ensure normal conditions in their homes. With the launch of this appeal, those who keep people in cold will no longer have any excuses. The grant covers up to 100% of investment costs and is thought of as the main solution to the problems related to the lack of hot water and heat caused by an outdated heating system. We support centralized heating systems because they are more efficient and less polluting. In parallel, in the next period, we will also launch through the Fund for Modernization an investment call for new CETs, gas groups, which will be able to accommodate hydrogen in the future. These investments must be thought of in an integrated way, including through the lens of the recent decision adopted by the Romanian Government to support the merger between Elcen and Termoenergetica, which forms the most important district heating system in Romania. Investments are the key to development and through investments we can have decent living conditions in all our cities, and the Ministry of Energy is determined to fulfill its mandate and put as many funds as possible for the projects that Romanians need so much,” said the Minister of Energy, Sebastian Burduja.
Funding from the Modernization Fund under this guide launched on Thursday covers two types of project calls: the first is a type A project call, in which the funding falls under the state aid scheme according to Regulation (EU) 2023/1315 of Commission of June 23, 2023 amending Regulation (EU) no. 651/2014. The net allocation corresponding to this call from the Modernization Fund (FM) is of 200 million euro. The second is a call for type B projects, in which the financing does not fall under the scope of state aid. Investments in projects that are part of the energy infrastructure and are exploited within a “natural monopoly” are financed, under the conditions set out in paragraph 375 of Commission Communication 2022/C 80/01 – Guidelines from 2022 regarding state aid for climate, environmental protection and energy, which do not fall under the scope of state aid. The net allocation corresponding to this call from the Modernization Fund (FM) is 390 million euro.
The closing date and time for the submission of type A projects is June 30, 2024, at 12:00, and the closing date and time for the submission of type B projects is January 1, 2027, at 12:00.