EBRD Boosts Hungary’s Energy Security With €70 Million Loan For Major Solar And Battery Project

The European Bank for Reconstruction and Development (EBRD) is strengthening Hungary’s energy security by providing a €70 million loan to special purpose vehicles owned by Renalfa IPP, an independent power producer operating across Central and Eastern Europe. This funding is part of a larger €210 million financing package arranged together with commercial banks. The investment will support the development, construction and operation of a major renewable energy project in northeastern Hungary. The project includes a 450 MW solar photovoltaic (PV) portfolio along with co-located battery energy storage systems (BESS) with a combined capacity of 250 MW/1 GWh.

This combination of large-scale solar generation and battery storage makes the project one of the first utility-scale hybrid renewable assets in Central and Eastern Europe to receive project financing. It is also one of the largest renewable energy developments ever undertaken in Hungary. Once operational, the project is expected to produce around 448 GWh of clean electricity each year. This will make a meaningful contribution to Hungary’s national goal of generating 30 per cent of its gross final energy consumption from renewable sources by 2030.

All electricity generated will be sold directly on the Hungarian market without relying on government support schemes or corporate power purchase agreements. This approach demonstrates the long-term financial viability of private renewable energy investments in Hungary and reinforces confidence in market-based pathways for expanding clean energy. By integrating solar generation with utility-scale battery storage, the project will help address fluctuations in renewable energy output, improve grid flexibility and strengthen overall energy security. These benefits are especially relevant as Hungary’s energy market continues to face increasing volatility.

Renalfa IPP’s CEO, Ivo Prokopiev, expressed appreciation for the EBRD’s continued support, noting that once the hybrid system becomes operational later this year, it will allow the company to deliver green baseload electricity and provide various flexibility services to the Hungarian grid. Anca Ionescu, the EBRD’s Regional Head for Hungary, Slovakia and the Czech Republic, said that this investment marks the EBRD’s first energy project in Hungary since 2010. She emphasised that returning to the sector with such an innovative and large-scale project reflects the Bank’s renewed commitment to advancing the country’s green transition and energy security.

Grzegorz Zielinski, EBRD Director and Head of Energy Europe, highlighted the importance of this development, noting that the project will strengthen Hungary’s energy system and set an important example for the wider Central and Eastern European region. Renalfa IPP is a joint venture between Renalfa Solarpro Group and RGREEN INVEST, combining extensive regional experience in renewable energy investment and development. Overall, this investment fully aligns with the EBRD’s strategy to support both energy security and the green transition in Hungary. Since beginning operations in the country, the EBRD has invested more than €3.7 billion across 220 projects.