EBRD and Raiffeisen back Romania’s green ambition with €110 million package

The European Bank for Reconstruction and Development (EBRD) and Raiffeisen Bank International are providing a €110 million financing package to build and operate two solar photovoltaic power plants in south-eastern Romania, with a total installed capacity of around 300 MW. The Iepuresti and Ghimpati projects mark the growing confidence in Romania’s renewables market in the wake of key regulatory changes to support the country’s ambitious green energy programme.

An EBRD loan of €55 million, to be matched by €55 million from Raiffeisen Bank International, will be split into two tranches of €25 million and €30 million. The first will be partially covered by a first-loss guarantee provided by the European Union under the InvestEU programme.

The project is expected to generate an annual 386 GW/h of renewable electricity, avoiding about 160,000 tonnes a year of carbon dioxide emissions. The electricity produced will be sold on the local market.

Grzegorz Zielinski, EBRD Head of Energy Europe, said: “We are excited to support Nofar Energy’s renewable energy investments in Romania, with the support of the InvestEU guarantee. These solar power plants will increase Romania’s renewable capacity, supporting the country’s ambition to add 11.9 GW of new renewable capacity by 2030.”

Favi Stelian, Chief Executive Officer of Nofar Energy Romania, said: “This achievement is not just a milestone; it is the logical next step in Nofar’s ongoing journey of growth and excellence. The successful completion of these projects will play a crucial role in supporting Romania’s ambitious goal for decarbonisation, contributing to a greener future for the region.”

Following a decade of limited investments, Romania’s renewable energy sector is experiencing renewed momentum. The EBRD is a key supporter of the country’s green transition, which will not only improve the environment but also safeguard the country’s energy security in the context of Russia’s war on Ukraine.

Romania’s growing ambition in this area builds on EU-wide commitments enacted under the Fit for 55 and REPowerEU initiatives, which aim to increase renewable energy production and reduce harmful emissions. In 2023, Romania committed to increase the share of renewables in its total energy consumption from 24.3 per cent in 2019 to a more ambitious 36.2 per cent by 2030 by adding 11.9 GW of new renewable capacity.

The owners of the Iepuresti and Ghimpati projects are RTG Solar Energy and Solis Imperium, both limited liability companies incorporated in Romania and ultimately majority-owned by OY Nofar Energy, an Israeli renewable energy company listed on the Tel Aviv stock exchange.