EBRD and Raiffeisen Bank Provide €110 Million for Major Solar Projects to Boost Romania’s Green Energy Expansion

EBRD and Raiffeisen Bank Provide €110 Million for Major Solar Projects to Boost Romania’s Green Energy Expansion

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) and Raiffeisen Bank International have provided a €110 million financing package to build and operate two solar photovoltaic power plants in south-eastern Romania. These plants, with a combined capacity of around 300 MW, are expected to generate 386 GW/h of renewable energy annually, reducing carbon dioxide emissions by about 160,000 tonnes each year. This investment aligns with Romania’s goal to add 11.9 GW of new renewable capacity by 2030, as part of its broader green energy transition. The funding is part of the EU’s InvestEU programme, with the EBRD playing a significant role in supporting Romania’s renewable energy ambitions.

(PRESS RELEASE) LONDON, 21-Aug-2024 — /EuropaWire/ — In a significant move to bolster Romania’s renewable energy sector, a €110 million financing package has been secured from The European Bank for Reconstruction and Development (EBRD), a multilateral developmental investment bank, and Raiffeisen Bank International. The funding will support the construction and operation of two large-scale solar photovoltaic power plants in south-eastern Romania, with a combined capacity of approximately 300 MW. This investment marks a renewed confidence in Romania’s commitment to green energy, following key regulatory changes aimed at accelerating the country’s transition to renewables.

The financing package includes €55 million from the EBRD, with a matching amount from Raiffeisen Bank International. The package is structured in two tranches of €25 million and €30 million, with part of the funding benefiting from a first-loss guarantee provided by the European Union under the InvestEU programme.

The solar plants, located in Iepuresti and Ghimpati, are expected to produce 386 GW/h of renewable electricity annually, reducing Romania’s carbon dioxide emissions by approximately 160,000 tonnes per year. The energy generated will be sold on the local market, contributing to the country’s ambitious goal of adding 11.9 GW of new renewable capacity by 2030.

Grzegorz Zielinski, EBRD Head of Energy Europe, highlighted the importance of this investment in supporting Romania’s renewable energy goals, emphasizing the role of the InvestEU guarantee in facilitating these projects. Favi Stelian, CEO of Nofar Energy Romania, described the projects as a crucial step in Romania’s decarbonization efforts.

This development is part of a broader push within Romania to increase the share of renewables in its energy mix to 36.2% by 2030, in line with EU-wide initiatives such as Fit for 55 and REPowerEU. The EBRD, a leading institution in climate finance, has played a pivotal role in Romania’s green transition, with nearly €11 billion invested in 524 projects across the country to date.

The solar projects are owned by RTG Solar Energy and Solis Imperium, Romanian entities majority-owned by Israeli renewable energy company OY Nofar Energy, which is listed on the Tel Aviv stock exchange. This investment underscores the growing momentum in Romania’s renewable energy sector, driven by both domestic ambitions and international partnerships.

Media contact:

Tel: +44 207 338 7805
Email: Group-PressUnit@ebrd.com

SOURCE: EBRD