Renalfa IPP has secured a €315 million holdco financing from a consortium of lenders led by the European Bank for Reconstruction and Development (EBRD) to accelerate the energy transition in central and eastern Europe. This financing will underpin a €1.2 billion investment programme for Renalfa’s portfolio, resulting in around 1.6GW of generation assets and 3.3GWh of co-located battery energy storage systems (BESS) becoming operational across Bulgaria, Hungary, Romania, and North Macedonia.
The project is expected to deliver around 2.3TWh of green electricity annually, enough to power 920,000 households. The integration of BESS will play a crucial role in improving grid stability, a critical factor as these regions transition away from fossil fuels. The consortium was led by the EBRD, which lent €100 million on its own account and mobilised an additional €100 million from commercial participants under an A/B loan structure. This marks the first time the EBRD has mobilised using an InvestEU guarantee for an A/B loan, extending EU risk-sharing support to syndicated B loan participants.
The presence of the guarantee helps mitigate risks associated with merchant-based renewable power generation and innovative storage technologies. Other lenders in the consortium include the Black Sea Trade and Development Bank (BSTDB), OTP Bank (OTP), Nova Ljubljanska Banka (NLB), UniCredit, and Kommunalkredit. Renalfa IPP, a Vienna-based joint venture between Renalfa Solarpro Group and French infrastructure fund manager RGreen Invest, focuses on solar, wind, and BESS projects.
Renalfa chief executive Ivo Prokopiev highlighted the significance of the funding, stating, “The successful raising of growth funding is an important milestone for Renalfa IPP and for our whole group. It proves the competitiveness of our integrated model for developing, investing, and operating large hybrid assets. The early implementation of long-duration co-located BESS allows Renalfa IPP to start offering green baseload products to market in central and eastern Europe for the first time.”
Mathilde Ketoff, partner at RGreen Invest, added, “At RGreen Invest, we are incredibly proud to support this landmark financing and to deepen our partnership with Renalfa.” Matteo Patrone, vice president of banking at EBRD, emphasised the broader impact of the transaction, saying, “This is a landmark transaction, which will accelerate the much-needed deployment of renewable energy, reduce reliance on fossil fuels, and strengthen energy security in a region still heavily dependent on carbon-intensive sources. We are proud to have been able to support this transaction, and, leveraging an InvestEU guarantee, to mobilise private sector investors to achieve a strong regional impact.”
This development could shape the energy sector by demonstrating the viability of integrated renewable and storage projects in emerging markets. The successful mobilisation of private sector investment, supported by public guarantees, may encourage similar projects in other regions. The focus on grid stability and the introduction of green baseload products could also influence market dynamics, potentially accelerating the adoption of renewable energy solutions across central and eastern Europe.