The European Bank for Reconstruction and Development (EBRD) announced on Friday, August 14, that it has extended a financing package of up to EUR 120 million for the development, construction, and operation of Econergy’s Părău 2 project in Romania.
The project includes a 342 MW solar photovoltaic plant and a 150 MW/300 MWh battery storage system in Brașov, according to a statement by the lender.
The financing consists of an EBRD A loan of up to EUR 57 million and an EBRD B loan of up to EUR 63 million, which includes a EUR 3.6 million debt service guarantee provided by commercial banks Privredna banka Zagreb and NLB.
According to the EBRD, the Părău 2 project will increase renewable energy production, help improve grid flexibility, and strengthen Romania’s energy security.
The project is co-financed by BSTDB (the Black Sea Trade and Development Bank), OTP Bank, and Exim Banca Românească, as part of a debt financing package of up to EUR 229 million.
“By financing one of the country’s pioneering solar and battery storage investments, the EBRD is helping to increase the generation of renewable energy, strengthen energy security and support a more resilient and flexible electricity system. The support of the European Union through InvestEU demonstrates how public and private partners can work together to mobilize financing for the green transition,” said Georgios Gkiaouris, the EBRD’s Head of Energy Europe.
The project is backed by Romania’s Contract for Difference scheme, which was developed with EBRD technical assistance and aims to unlock 5 GW of solar and onshore wind capacity. The solar plant has secured a 125 MWac allocation in the first auction at a strike price of EUR 49.4/MWh for 15 years, while the remaining capacity will operate on a merchant basis.
The European Union supported the EBRD A/B loan through a first-loss portfolio guarantee provided by the InvestEU programme, which covers up to EUR 115 million and helps mitigate the risks associated with the project’s substantial exposure to merchant revenue.
(Photo source: ebrd.com)
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