EBRD provides €29m loan to develop Albania’s first major solar photovoltaic plant

EBRD provides €29m loan to develop Albania’s first major solar photovoltaic plant

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) has provided a €29 million loan to a special-purpose vehicle owned by France’s Voltalia to develop the 140 MW Karavasta solar plant in Albania. The project marks Albania’s first major utility-scale solar photovoltaic plant and was developed following the country’s first competitive auction for solar power. The total cost of the project is €135 million, with co-financing from the International Finance Corporation, Intesa Sanpaolo Bank Albania, Privredna Banka Zagreb, and Voltalia’s own resources. The EBRD is the largest financier of renewable energy in the Western Balkans and is working on introducing renewable auctions in Montenegro, Kosovo, and Serbia.

(PRESS RELEASE) LONDON, 24-Apr-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), a multilateral developmental investment bank, announces that France’s Voltalia-owned Albanian special-purpose vehicle is set to develop the 140 MW Karavasta solar plant in the Fier region of south-western Albania, following a €29 million loan from the EBRD. The EBRD will anchor the €99 million financing structure needed for the project and will encourage considerable and creative commercial debt participation. The project will cost €135 million and is co-financed by Intesa Sanpaolo Bank Albania, the International Finance Corporation (IFC), Privredna Banka Zagreb, and Voltalia’s own resources.

This project marks a significant milestone for Albania as it is the country’s first major utility-scale solar photovoltaic plant developed following its first competitive auction for solar power. Furthermore, the project will act as a model for others in the Western Balkans region.

EBRD Director, Head of Energy for Europe, Grzegorz Zielinski said: “We are proud to see this project reach financial close.  It will contribute meaningfully to the diversification of local generation sources, which to date have been mostly hydro. Nationally, the project will significantly increase the share of Albania’s solar power generation, helping further to reduce the effects of climate change.”

Matteo Colangeli, EBRD Director for the Western Balkans, said: “This is an excellent example of impactful and business-enabling policy engagement combined with skilful project finance structuring that leads to concrete results for the country.”

“The Karavasta Solar Project is a milestone for the transition towards a diversified renewable energy mix in Albania. Today’s signing is proof of the quality and sustainability of the project,” said Constantin von Alvensleben, Voltalia’s Country Manager for Albania. “Voltalia has benefitted from a long-standing relationship and full alignment with the EBRD on all important aspects of the project. It is therefore a great moment for all stakeholders, including other lenders – IFC and Intesa Sanpaolo – as well as the government of Albania as the contractual partner of the project agreements.”

Following the Karavasta auction, the EBRD has assisted Albanian authorities with a solar PV auction at Spitalla, and is currently aiding with a 150 MW onshore wind auction. Moreover, the EBRD is backing an upcoming 300 MW solar PV auction in June – the region’s biggest solar auction to date – and is also working with the authorities to deliver Albania’s first offshore wind capacity.

The EBRD is the Western Balkans’ largest financier and enabler of renewable energy, and it is currently working to introduce renewable auctions in Montenegro, Kosovo, and Serbia.

Media contact:

Tel: +44 207 338 7805
Email: press@ebrd.com

SOURCE: EBRD