The European Bank for Reconstruction and Development (EBRD) is making significant strides in Romania’s clean energy transition by financing the Părău 2 project, a pioneering hybrid solar photovoltaic and battery storage initiative. This project, developed by Econergy, combines 342 MW of solar capacity with a 150 MW/300 MWh battery energy storage system located in Brașov. The EBRD has committed up to €120 million to support the development, construction, and operation of this innovative project, marking the first instance of the bank financing a hybrid renewable energy project in Romania.
The financing package consists of an EBRD A loan of up to €57 million and an EBRD B loan of up to €63 million, which includes a €3.6 million debt service reserve facility provided by commercial banks. The total debt financing for the project amounts to €229 million, with additional support from the Black Sea Trade and Development Bank, OTP Bank, and Exim Banca Românească. The European Union is also backing this initiative through the InvestEU programme, which provides a first-loss guarantee to mitigate risks associated with the project’s exposure to merchant revenue.
Georgios Gkiaouris, the EBRD’s Head of Energy Europe, highlighted the significance of the Părău 2 project in enhancing Romania’s energy security and promoting a more resilient electricity system. The project is expected to increase renewable energy generation, improve grid flexibility, and reduce reliance on fossil fuels. Eyal Podhorzer, CEO of Econergy, expressed that securing €229 million for Părău 2 is a milestone for both the company and the Romanian market, showcasing the confidence of international lenders in their operational capabilities.
The project is further supported by Romania’s Contract for Difference scheme, which aims to unlock 5 GW of solar and onshore wind capacity. The solar plant has already secured a 125 MWac allocation at a competitive strike price for 15 years, while the remaining capacity will operate on a merchant basis. Additionally, Intesa Sanpaolo and Exim Banca Românească will provide facilities to support the project’s Contract for Difference requirements.
By integrating solar generation with battery storage, the Părău 2 project will facilitate the incorporation of more variable renewable energy into Romania’s electricity system. The battery storage component will enable the shifting of solar output to meet higher demand periods, thereby enhancing the grid’s flexibility and reducing dependence on fossil fuels for peak capacity. This investment underscores the EBRD’s commitment to supporting Romania’s green transition and energy security, having invested over €12.7 billion in the country through more than 600 projects to date.
