The European Bank for Reconstruction and Development (EBRD) has announced a direct equity investment of up to €16.8 million in IE-Energy Projekt, a newly established joint-stock company developing a greenfield battery energy storage system (BESS) and virtual power plant (VPP) in Šibenik, Croatia. This strategic investment, approved under the EBRD Direct Finance Framework for non-SMEs, marks an important milestone in advancing Croatia’s clean energy infrastructure and supporting its energy transition goals.
Alongside the EBRD’s investment, the project will receive an equivalent equity contribution of €16.8 million from Raiffeisen Mandatory and Voluntary Pension Funds, one of Croatia’s major institutional investors. Additionally, the development will benefit from a €16.5 million capital expenditure grant from the European Union’s Modernisation Fund. Together, these funds will drive the implementation of cutting-edge energy storage and management systems to enhance grid stability and renewable energy integration.
The project aims to install up to 60 megawatts of grid-connected battery storage capacity and deploy an advanced virtual power plant platform capable of balancing electricity supply and demand in real time. Once operational, the BESS and VPP systems will provide Croatia’s power grid with greater flexibility, allowing for a higher share of intermittent renewable energy sources, such as solar and wind, to be efficiently integrated into the national energy mix.
By supporting this forward-looking initiative, the EBRD is contributing to Croatia’s broader decarbonisation and energy independence objectives. The project will help reduce the country’s dependence on fossil fuels, improve grid reliability, and support the ongoing transformation of the energy sector in line with EU sustainability goals.
Commenting on the investment, Miljan Ždrale, EBRD Director for Central Europe, said, “This investment marks a milestone in Croatia’s green transition. It supports the deployment of next-generation energy infrastructure and strengthens the resilience of the national grid, opening the door for more clean energy sources.”
This financing further reinforces the EBRD’s long-standing commitment to advancing renewable energy innovation and smart grid technologies across its regions of operation. By enabling the development of flexible energy storage and digital power management systems, the Bank is helping countries like Croatia accelerate their transition toward efficient, low-carbon, and reliable energy systems.
To date, the EBRD has invested more than €5 billion across 273 projects in Croatia, focusing on accelerating structural reforms, leveraging the benefits of EU accession, and promoting the commercialization of public-sector enterprises. Through initiatives such as the IE-Energy Projekt, the EBRD continues to play a key role in strengthening Croatia’s sustainable growth and energy resilience.
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