The European Bank for Reconstruction and Development (EBRD) is supporting Romania’s transition to clean energy with a financing package of up to €120 million for the development, construction and operation of Econergy’s Părău 2 project: a 342 MW solar photovoltaic plant with a co-located 150 MW/300 MWh battery energy storage system in Brașov. This project will increase the generation of renewable energy, help to make the grid more flexible and strengthen Romania’s energy security.
The financing consists of an EBRD A loan of up to €57 million, alongside an EBRD B loan of up to €63 million (which includes a €3.6 million debt service reserve facility provided by commercial banks Privredna banka Zagreb and NLB). The project is being co-financed by the Black Sea Trade and Development Bank, OTP Bank and Exim Banca Românească as part of an aggregate debt financing package of up to €229 million.
The European Union (EU) is supporting the EBRD’s A/B loan through a first-loss guarantee provided under the InvestEU programme, covering up to €115 million and helping to mitigate risks associated with the project’s substantial exposure to merchant revenue.
Georgios Gkiaouris, the EBRD’s Head of Energy Europe, said: “Econergy’s Părău 2 project represents an important step in Romania’s energy transition. By financing one of the country’s pioneering solar and battery storage investments, the EBRD is helping to increase the generation of renewable energy, strengthen energy security and support a more resilient and flexible electricity system. The support of the European Union through InvestEU demonstrates how public and private partners can work together to mobilise financing for the green transition.”
Eyal Podhorzer, CEO of Econergy, said: “Closing €229 million on Părău 2 is a milestone for Econergy and the Romanian market. The EBRD’s leadership was decisive in bringing together a consortium of six international lenders on terms that reflect their confidence in how we build and operate, and that gives us the platform to move on the rest of our European pipeline.”
The project is backed by Romania’s Contract for Difference scheme, which was developed with EBRD technical assistance and aims to unlock 5 GW of solar and onshore wind capacity. The solar plant has secured a 125 MWac allocation in the first auction at a strike price of €49.4/MWh for 15 years, while the remaining capacity will operate on a merchant basis.
In addition, Intesa Sanpaolo and Exim Banca Românească will jointly provide a €25 million value-added-tax facility and a €9.5 million letter-of-credit facility to support the project’s Contract for Difference requirements.
By pairing solar generation with battery storage, the project will support the integration of more variable renewable power into Romania’s electricity system. The battery storage will help to shift solar output to periods of higher demand and support Romania’s ancillary and balancing services, making the grid more flexible and reducing reliance on fossil fuels for peaking capacity.
This is the first time that the EBRD has financed a hybrid renewable-energy project combining solar photovoltaic generation with co-located battery storage in Romania. This investment will support the country’s green transition and energy security while helping to facilitate the integration of renewable energy into the power system.
