CARMEN: €104m for Romania-Bulgaria Smart Grids — NRG-IA

The CARMEN Smart Grid project has secured approximately €104 million in European funding through the Connecting Europe Facility program, following the signing of the grant agreement by Delgaz Grid, Transelectrica, and ESO Bulgaria, alongside representatives of the European Climate, Infrastructure and Environment Executive Agency. The total value of the project is around €207 million , with the remaining balance to be covered by the three partners from their own funds. The agreement was signed in Copenhagen on the sidelines of the Energy Infrastructure Forum, a European event dedicated to energy infrastructure. For Romania, this signing is not just news about attracting EU funds, but about a shift in priorities: power grids are becoming the central infrastructure of the energy transition, rather than mere technical support for generation. CARMEN funds the grid, not energy generation The project does not build power plants or directly add new megawatts to the system. CARMEN funds the infrastructure that allows energy to flow more safely, flexibly, and intelligently between producers, consumers, prosumers, distributors, and transmission system operators. This distinction is essential. Romania and the region do not just need more installed renewable capacity, but grids capable of absorbing it. Without a sufficiently modern grid, locally produced energy can become difficult to integrate, leading to congestion, operational strain, and connection limitations. In official communications, the project is presented as a Project of Common Interest (PCI) aimed at modernizing and digitalizing transmission and distribution grids, increasing stability and the capacity to integrate renewable energy, and improving cross-border cooperation between Romania and Bulgaria. Funding is split between distribution, transmission, and regional interconnection Out of the total value of approximately €207 million , Delgaz Grid's share is €77.5 million , of which nearly €39 million represents non-repayable EU funds. Transelectrica's share is €70.7 million , with nearly €35.4 million in EU funding, while ESO Bulgaria's component stands at €59.3 million , with €29.6 million in grant funding. This allocation highlights the nature of the project: it is not an isolated investment in a single substation or line, but a coordinated effort between distribution and transmission with a cross-border dimension. Delgaz Grid is the project promoter, Transelectrica is the Romanian transmission system operator (TSO), and ESO Bulgaria is the Bulgarian TSO. In Romania, Delgaz Grid's investments target the six counties where the company operates the electricity distribution network: Bacău, Botoșani, Iași, Neamț, Suceava, and Vaslui . The plans include modernization, automation, and grid digitalization. Why it matters for prosumers and renewables The most critical stake is the grid's capacity to absorb decentralized energy generation. In a system historically built for relatively predictable flows from large power plants to consumers, the rise of prosumers and distributed renewable generation changes the direction and dynamics of energy in the grid. Delgaz Grid points out that the project aims to prepare the electricity infrastructure for the energy transition, including by increasing the capacity to absorb energy from renewable sources and prosumers. The company also highlights benefits such as grid automation, the implementation of Demand Side Management via SCADA and smart metering, loss reduction, and increased efficiency of the distribution service. For the general public, the explanation is simple: if an area produces increasingly more solar energy during certain hours, the grid must be able to measure, regulate, redistribute, and manage these flows. An outdated grid sees too little and reacts slowly. A smart grid must see more, faster, and be able to adjust system parameters without slow and costly manual interventions. Smart grid means control, data, and flexibility CARMEN includes technologies such as Dynamic Line Rating (DLR), FACTS devices, and real-time monitoring systems. These are not decorative details, but tools that can transform how the grid is operated. Dynamic Line Rating allows for a more precise assessment of the actual transmission capacity of lines based on operating conditions, while FACTS devices contribute to voltage control and grid stability. The European project factsheet indicates works such as conductor replacement and DLR installation on over 450 km of overhead lines in the Romanian distribution network, 150 km at the transmission level in Romania, and 300 km in the Bulgarian transmission network. The document also mentions over 500 km of fiber optics, the modernization and digitalization of primary and secondary substations, SCADA platforms, smart metering, and the development of data platforms. This is where the difference lies between a traditional grid investment and a smart grid project. It is not just about new…