Money for cogeneration and district heating

Administrative-territorial units and CETs can submit applications for the financing of high-efficiency cogeneration projects and modernization of district heating networks, after yesterday the Ministry of Energy launched the related call for accessing 361 million euros from the Modernization Fund for this purpose.

On the occasion of the launch of the call, Sebastian Burduja, Minister of Energy, said: "Investments in technologies for a safe and less polluting energy are my stated priorities right when taking office. Romania has set bold targets in this area of decarbonisation. Not a few have questioned the ability of the Ministry of Energy to put the 16 billion euros from the Modernization Fund to work, but the sustained pace at which my colleagues are working puts the European money in motion. As a result of these investments, the production cost of the thermal agent decreases, which will be felt directly in the citizen's pocket, and also a better efficiency of the supply of heat and hot water will be ensured".

Guide related to the state aid scheme promoted by the Order of the Minister of Energy no. 542/2024 and which finances the development of flexible gas production capacities for the production of electricity and heat in high-efficiency cogeneration (CHP) in the district heating sector, the press release of the Ministry of Energy also states. The guide aims to achieve national targets for the modernization and realization of high-efficiency cogeneration plants, as well as the modernization of district heating networks, and is the second release after the networks guide, which was promoted earlier this year. Technological upgrades will lead to ensuring the achievement of the related 2030 targets established in the Green Deal.

According to the guide, the eligible beneficiaries are: enterprises that produce electricity and thermal energy in cogeneration in the centralized heating system (CETs): large, medium or small enterprises; administrative-territorial units/territorial administrative subdivisions defined according to the legal provisions in force. The total budget allocated to the call: 361,950,000 euros. The amount of state aid is 100% of the additional net cost (financing deficit), which must be determined by comparing the profitability of the factual scenario with that of the counterfactual scenario. State aid granted for projects aimed at investing in energy-efficient district heating and cooling systems will only be granted if they have an incentive effect and respect the principle of starting the works.