European Bank For Reconstruction And Development Provides Up To €44 Million For Large-Scale Battery Storage Project In Romania

The European Bank for Reconstruction and Development (EBRD) is supporting the development of a major battery energy storage project in Scornicești, Romania, as the country continues to expand its renewable energy capacity and modernize its power infrastructure. The project is being jointly developed by R.Power S.A., a pan-European independent power producer headquartered in Poland, and Eiffel Investment Group through its managed fund, Eiffel Transition Infrastructure SLP.

The planned battery energy storage system (BESS) will have an installed capacity of 127 MW and a storage capacity of 254 MWh, making it one of the largest standalone energy storage projects in Romania. Once operational, the facility is expected to play a significant role in strengthening the country’s energy security, improving grid reliability, and supporting the integration of renewable energy sources into the national power system.

To support the development, construction, and operation of the project, the EBRD will provide financing of up to €44 million through a non-recourse project finance structure. Of this amount, €29 million will be backed by an InvestEU first-loss guarantee, helping to reduce investment risks associated with the project and facilitate access to long-term financing.

Romania has been rapidly increasing renewable energy generation as part of its updated National Energy and Climate Plan, which aims for renewable sources to account for 38.3% of final energy consumption by 2030. While this expansion is helping the country move toward a cleaner energy mix, it is also creating new challenges for the electricity grid, particularly in balancing supply and demand due to the intermittent nature of solar and wind power.

As a result, large-scale energy storage solutions are becoming increasingly important for maintaining system stability.The Scornicești battery storage facility is expected to address these challenges by storing excess electricity when renewable generation is high and releasing it back into the grid when demand increases or generation declines. This capability will help improve grid flexibility, reduce renewable energy curtailment, and support the broader integration of clean energy into Romania’s power system.

The project is also expected to be among the first large-scale standalone battery energy storage systems operating in Romania’s emerging energy storage market. By demonstrating both the commercial and technical viability of standalone storage projects, it is expected to encourage additional investment in the sector and accelerate the development of similar projects across the country.

Revenue for the facility will primarily come from participation in Romania’s developing ancillary and balancing services market. The project will operate on a largely merchant basis, generating income through an optimisation agreement with regional energy trader GEN-I. Through this arrangement, the battery system will provide services that help maintain grid balance and reliability while taking advantage of market opportunities created by fluctuations in electricity supply and demand.

Beyond its contribution to the energy sector, the project also includes a social impact component. Outreach programs will be carried out in collaboration with local educational institutions to encourage greater participation of women and young people in the energy industry, a sector that has traditionally been dominated by men.

These initiatives are intended to raise awareness of career opportunities in clean energy and help promote a more diverse future workforce.The InvestEU first-loss guarantee plays an important role in the project by helping mitigate the higher risks typically associated with merchant-based energy storage operations. InvestEU is a European Union programme designed to accelerate sustainable investment across member states by supporting innovative projects that contribute to climate and energy transition goals.

Through risk-sharing mechanisms, the programme helps attract private capital into emerging sectors such as battery energy storage.The financing is being provided to a project company established in Romania. The project’s co-developer, R.Power, has built a substantial portfolio of renewable energy, hybrid energy, and battery storage projects across Europe and is continuing to expand its presence in the rapidly growing energy storage market.

The investment also reflects the EBRD’s long-standing commitment to Romania’s economic and energy development. To date, the Bank has invested more than €12.5 billion across 591 projects in the country, supporting initiatives that enhance infrastructure, promote sustainability, strengthen energy security, and support Romania’s transition toward a more resilient and low-carbon economy.