Romanian help for district heating system rehabilitation in Bucharest will get EU nod

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Romanian plans to help the improve of the district heating system of the municipality of Bucharest adjust to EU State Aid rules, EU Executive Vice-President Margrethe Vestager, in control of competitors coverage, has stated.

“This €254 million aid measure, funded thanks to EU structural funds, will help Romania achieve its energy-efficiency targets and will contribute to the reduction of greenhouse gas and other pollutants emissions, without unduly distorting competition,” Vestager stated.

Romania notified the Commission of its plans to supply public help of approximately €254 million (1,208 billion RON ) for the rehabilitation of the distribution community, notably the transmission pipelines of sizzling water to the primary distribution factors, of the district heating system within the city space of Bucharest, the Commission stated, including that the deliberate help will take the type of a direct grant financed by EU Structural Funds managed by Romania.

The Bucharest district heating system is the biggest in measurement within the EU, and the second largest on this planet, serving 1.2 million inhabitants, masking round 940 km of thermic pipes for the transmission system and a couple of,800 km pipes for the distribution system. The rehabilitation of the Bucharest District heating will consist within the alternative of sections of predominant sizzling water transmission pipelines for approximately 10% of the general size of Bucharest’s district heating community, the Commission stated, including that this funding will scale back warmth losses, water refill losses, community upkeep prices, in addition to different losses. The measure will subsequently contribute to vitality financial savings and scale back greenhouse gasoline emissions and different pollution emissions.

As demonstrated by the Romanian authorities, regardless of the discount by round 10% of working prices, the general operation of the district heating system won’t generate ample revenues to cowl the funding prices, the Commission stated. Therefore, the mission wouldn’t be financially viable with out public help. The contribution of a grant from EU Structural Funds is required to cowl the financing hole of the mission.

The Commission concluded that the measure doesn’t distort competitors and is in step with EU State help rules, notably due to the discount of greenhouse gasoline emissions and different polluting substances and the development of the vitality effectivity of the district heating system.

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