By Abdullahi Lukman
The European Bank for Reconstruction and Development (EBRD) is providing up to €120 million to support the development of Econergy’s Părău 2 renewable-energy project in Romania, comprising a 342 MW solar photovoltaic plant and a 150 MW/300 MWh battery storage system in Brașov.
The financing forms part of a wider €229 million debt package involving the EBRD, Black Sea Trade and Development Bank, OTP Bank and Exim Banca Românească. The European Union is also supporting the EBRD financing through an InvestEU first-loss guarantee of up to €115 million.
The project is expected to increase Romania’s renewable-energy generation while improving grid flexibility and strengthening energy security. Its battery system will allow excess solar power to be stored and released during periods of higher demand, while also supporting balancing and ancillary grid services.
Părău 2 is backed by Romania’s Contract for Difference scheme. The project secured a 125 MWac allocation in the scheme’s first auction at €49.4/MWh for 15 years, with the remaining capacity expected to operate on a merchant basis.
Additional financing includes a €25 million VAT facility from Intesa Sanpaolo and Exim Banca Românească, as well as a €9.5 million letter-of-credit facility to meet the project’s Contract for Difference requirements.
The investment marks the EBRD’s first financing in Romania for a hybrid renewable-energy project combining solar generation with co-located battery storage. It is also expected to help reduce reliance on fossil-fuel generation during periods of peak demand.
EBRD Energy Europe Head Georgios Gkiaouris said the project would contribute to Romania’s energy transition by expanding renewable generation and creating a more flexible and resilient electricity system.
Econergy CEO Eyal Podhorzer described the €229 million financing as a milestone for the company and said it would support the development of its wider European project pipeline.
