EU invests €104 million in the CARMEN smart grid project between Romania and Bulgaria: implications for the Danube–Black Sea region

The European Union is providing around €104 million in funding under the Connecting Europe Facility, CEF, for the implementation of the CARMEN smart grid project involving Romania and Bulgaria.

The project participants are Romania’s distribution network operator Delgaz Grid, a subsidiary of the German group E.ON, Romania’s transmission system operator Transelectrica, and Bulgaria’s electricity system operator ESO.

The total value of the project is estimated at €207 million. Its key objective is to moder nise, digitalise and increase the resilience of electricity transmission and distribution networks. Particular emphasis is placed on increasing the capacity of energy systems to integrate electricity generated from renewable sources, as well as on strengthening cross-border cooperation between Romania and Bulgaria.

The project is of practical importance for reducing grid congestion, increasing the capacity of interconnectors and introducing digital data exchange platforms between transmission and distribution system operators.

According to the investment plan, Delgaz Grid will invest €77.5 million, of which almost €39 million will be covered by EU grant funding. Transelectrica’s share amounts to €70.7 million, including €35.4 million in EU funds. The Bulgarian operator ESO will invest €59.3 million, of which €29.6 million will come from European funding.

As part of the project, Delgaz Grid will carry out investments in six counties in north-eastern Romania — Bacău, Botoșani, Iași, Neamț, Suceava and Vaslui. This area is of particular importance for energy and infrastructure cooperation between Romania, Moldova and Ukraine.

Delgaz Grid operates around 27,000 km of gas distribution networks in 20 Romanian counties, as well as more than 65,000 km of electricity networks in six counties of the historical Moldova region in north-eastern Romania.

Comment by the Institute of Danube Research

The CARMEN project is an important step towards building a digitalised and resilient energy infrastructure in the Danube–Black Sea region. Its significance goes beyond the technical modernisation of Romanian and Bulgarian networks, as it is also about strengthening cross-border energy cooperation, increasing interconnection capacity and improving the integration of renewable energy.

For Ukraine, this project is a relevant example of how EU investment in grid infrastructure can enhance energy security, community resilience and the competitiveness of border regions. This experience is particularly important for the Ukrainian Danube region, where the development of energy, logistics and industrial projects requires a modern, flexible energy system compatible with the European market.

The Institute of Danube Research considers CARMEN an important signal for Ukraine: the future of regional development will depend on the ability to integrate renewable energy, digital grids and cross-border infrastructure into a single system of energy resilience.