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Romania to benefit, 2021 to 2030, from financing of approximately 6 billion euros through Modernization Fund

By District Energy posted 12-02-2020 12:14




Prime Minister Ludovic Orban said that Romania will benefit from European funding estimated at approximately 6 billion euros, through the Modernization Fund, in the period 2021-2030, and the funds will be allocated, in particular, to investments in cogeneration production capacities and renewable green energy.

The head of the Executive made the statement at the end of the working meeting he had on Thursday at the Ministry of Economy with Minister Virgil Popescu and Bucharest General Mayor Nicusor Dan.

"Less known is another funding pillar, which is extremely important, this financing pillar is the Modernization Fund. In the period 2021-2030, Romania will benefit from an estimated financing of approximately 6 billion euros for the financing of projects in several fields. Where does the money come from, from a percentage of CO2 certificates. There are 11 countries in Central and Eastern Europe that benefit from this form of financing and practically benefit from 11% of the value of CO2 certificates, while about 200 million certificates go to Romania, which, estimated at the market value in the coming years, lead us to the guarantee of a financing of even more than 6 billion euros," said Ludovic Orban.

He explained that this money is usually used to finance investment spending in two areas, structured on pillar I and pillar II. "

"Pillar I, which benefits from a financing of 70% of this amount, is intended for investments in cogeneration production capacities, it is also intended for investments in renewable green energy, it is intended for investments, including in the modernization of heat transmission networks, it also has other uses. As for Pillar II, which represents 30% of the amount available for Romania, there is money that can be used for gas production capacity that does not work in the cogeneration system," Orban detailed.

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