Romania - Electricity Transmission Network

The development objective of the Electricity Market Project for Romania is to develop a well-functioning wholesale electricity market with the aim of: (a) putting in place a transparent and predictable commercial and regulatory framework and a power exchange that will facilitate electricity trading within a competitive national, regional and eventually European market; and (b) improving the efficiency and reliability of the transmission system in order to support trading and supply electricity at least cost to consumers. A well-functioning wholesale electricity market is an integral component of Romania's strategy to attract and sustain private sector participation in power sector renewal, especially for the refurbishment o f power distribution and generation assets, and to develop a more efficient and increasingly competitive power sector. There are two main project components. The project will be implemented by Transelectrica (Romania's grid company and power system operator), OPCOM ("Operator Commercial," the subsidiary of the national power company and Romania's power market operator), and ANRE (the regulatory agency for electricity and heat). The first component, the investment component, rehabilitates the Iernut substation and Fundeni Substation, and finances engineering and supervision consulting services. The second component , the technical assistance component, 1) designs and implements the regulatory framework (commercial code, market rules, and price-caps for network services) for the new Electricity Trading Platform; 2) designs, pilot tests, and implements the new Electricity Trading Platform through the OPCOM Power Exchange; and 3) provides institutional support to Transelectrica.