EBRD guarantees support for solar plant in Bulgaria

Under its risk-sharing framework, the European Bank for Reconstruction and Development (EBRD) will guarantee up to €25 million for a loan provided by UniCredit Bulbank to the Tsenovo solar plant in Bulgaria.

The proceeds of the loan will enable the construction and operation of the large-scale solar plant in north-eastern Bulgaria, and the addition to the national electricity system of 112.5 MW of new solar generation capacity.

Tsenovo Solar Plant is sponsored by Enery Development, a Vienna-based renewable energy infrastructure company with 273 MW of operational renewable energy plants across central and eastern Europe. Enery is supported by the Three Seas Initiative Investment Fund.

The transaction allows Bulgaria to progress towards its ambitious renewable energy targets, which include the country’s commitment to phasing out coal-fired generation by 2038.

The EBRD’s 2020-25 strategy for Bulgaria voices its commitment to supporting the country’s sustainable infrastructure development through regional connectivity, green municipal solutions, decarbonisation and resource efficiency. The project will contribute to decarbonisation by increasing the share of renewable energy generation in Bulgaria.

The transaction is the first greenfield renewable project financed under the risk-sharing framework and is an example of innovative financing structures, including risk sharing, that the EBRD employs to help partner banks with capital and liquidity constraints.

The EBRD is a leading institutional investor in Bulgaria, with a cumulative investment of €4.5 billion in 292 projects in the country. The Bank’s focus in the country remains on enhancing the private sector’s competitiveness, strengthening the financial sector and narrowing the infrastructure gap.