The European Bank for Reconstruction and Development (EBRD) has committed up to €120 million to support the development, construction and operation of Econergy’s Părău 2 renewable energy project in Romania. The project, located in Brașov, will combine a 342 MW solar photovoltaic plant with a 150 MW/300 MWh battery energy storage system.
The investment is expected to increase Romania’s renewable electricity generation while improving grid flexibility and strengthening the country’s energy security. The project is also expected to help integrate more variable renewable energy into the electricity system and reduce dependence on fossil-fuel-based power generation during periods of high demand.
The EBRD financing includes an A loan of up to €57 million and a B loan of up to €63 million. The B loan includes a €3.6 million debt service reserve facility provided by commercial banks Privredna banka Zagreb and NLB.
The overall debt financing package for Părău 2 could reach €229 million. The project is being co-financed by the Black Sea Trade and Development Bank, OTP Bank and Exim Banca Românească.
The European Union is supporting the EBRD’s financing through a first-loss guarantee under the InvestEU programme. The guarantee covers up to €115 million and is designed to help reduce risks linked to the project’s exposure to merchant electricity revenues.
Părău 2 is supported by Romania’s Contract for Difference (CfD) scheme, which was developed with technical assistance from the EBRD. The scheme aims to support the development of 5 GW of solar and onshore wind capacity in the country.
Under the first CfD auction, the solar project secured a 125 MWac allocation at a strike price of €49.4/MWh for 15 years. The remaining project capacity will operate on a merchant basis.
Additional financial support includes a €25 million value-added-tax facility jointly provided by Intesa Sanpaolo and Exim Banca Românească. The banks will also provide a €9.5 million letter-of-credit facility to support the project’s CfD requirements.
The co-located battery storage system will play an important role in managing the solar plant’s electricity output. It will allow energy generated during periods of strong sunlight to be shifted to periods of higher electricity demand. The battery will also support ancillary and balancing services, helping improve the flexibility and reliability of Romania’s power grid.
Părău 2 represents the first hybrid renewable energy project in Romania combining solar generation with co-located battery storage to receive financing from the EBRD.
Econergy said the €229 million financing package marks an important milestone for both the company and Romania’s renewable energy market. The financing is also expected to support Econergy’s wider European renewable energy development pipeline.
The EBRD is one of the leading institutional investors in Romania. It has invested more than €12.7 billion through over 600 projects in the country to date.
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