The European Bank for Reconstruction and Development(EBRD) has announced an investment of EUR 12.2 million for the construction of two new solar power plants, boosting solar energy in Romania. This financial support is part of a larger package of EUR 24.4 million, which is designed to encourage the development of clean energy in the region, in line with the European Union’s objectives to increase renewable energy production.
Solar energy in Romania
The project is being carried out by Danube Solar Five, a Romanian company owned by INVL’s Renewable Energy Fund I, a Lithuanian-based asset manager with more than EUR 1 billion in real estate, infrastructure and energy assets. With a total installed capacity of 60 MW, the Robanesti and Pielesti plants meet the modernization expectations of the Romanian electricity market.
EBRD is not the only key player in this initiative. Eiffel Investment Group, an energy infrastructure investment fund, has provided the remaining €12.2 million of the financing package.
Romania, as a member of the European Union, is committed to the Fit for 55 and REPowerEU plan targets, which seek to increase the share of renewable energy in the country’s total energy consumption. This commitment has led Romania to set a target of 36.2% renewable energy by 2030, an increase from the 24.3% recorded in 2019.
EBRD’s Director of Energy Europe, Grzegorz Zielinski, commented on the importance of this project, highlighting that“EBRD’s participation in this segment provides a demonstration effect on the Romanian market, encouraging other potential financiers to follow suit.” To date, EBRD has invested nearly EUR 11 billion in Romania, underlining its key role in the country’s economic development and energy transition.
This type of financing, known as limited recourse construction bridge facilities, is an innovative structure that allows developers to hedge upfront construction and development risks, thereby unlocking new investment opportunities in renewable energy. These projects enable Romania to move steadily towards a more sustainable energy future.
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Source: EBRD
Photo: Shutterstock
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