Two new photovoltaic solar power plants will be built in southeastern Romania, with a total installed capacity of approximately 300 MW.
The funding comes from the European Bank for Reconstruction and Development (EBRD), which, together with Raiffeisen Bank International, provides financing of 110 million euros.
The Iepureşti and Ghimpaţi projects mark an increase in confidence in Romania's renewable energy market, following key regulatory changes to support the country's ambitious green energy program, as stated in an EBRD press release.
The project is expected to generate annually 386 GWh of renewable electricity, avoiding approximately 160,000 tons of carbon dioxide emissions per year.
The produced electricity will be sold on the local market.
The beneficiaries of the Iepureşti and Ghimpaţi projects are RTG Solar Energy and Solis Imperium, both companies registered in Romania and majority-owned by OY Nofar Energy, an Israeli renewable energy company listed on the Tel Aviv Stock Exchange.
A loan of 55 million euros from EBRD, combined with 55 million from Raiffeisen Bank International, will be granted in two tranches: one of 25 million and another of 30 million.
The first tranche will be partially covered by a first loss risk guarantee provided by the European Union through the InvestEU program.
"We are delighted to support Nofar Energy's investments in renewable energy in Romania, with the support of the InvestEU guarantee. These solar power plants will increase Romania's renewable energy capacity, supporting the country's ambition to add a new renewable capacity of 11.9 GW by 2030," said Grzegorz Zielinski, Head of the Energy Department for Europe at EBRD.
Romania's growing ambition in this field is based on the EU commitments set out in the Fit for 55 and REPowerEU initiatives, which aim to increase renewable energy production and reduce harmful emissions.
In 2023, Romania has committed to increasing the share of renewable energy in total energy consumption from 24.3% in 2019 to a more ambitious 36.2% by 2030, by adding 11.9 GW of new renewable capacity.
EBRD, a leader in climate finance, has invested a total of 11 billion euros in 524 projects in Romania to date.