The European Bank for Reconstruction and Development (EBRD) is set to make a direct equity investment of up to €16.8 million in IE‑Energy Projekt, a newly formed joint-stock company dedicated to developing a greenfield battery energy storage system (BESS) and a virtual power plant (VPP) in Šibenik, Croatia.

Source: EBRD

Investment Details

• EBRD's investment has been approved under the EBRD Direct Finance Framework for non-SMEs.
• The project also anticipates an equivalent equity investment of €16.8 million from Raiffeisen Mandatory and Voluntary Pension Funds, a significant Croatian institutional investor.
• Additionally, it will receive a €16.5 million capex grant from the EU Modernisation Fund.

Project Impact

The development will facilitate the installation of up to 60 megawatts of grid-connected battery storage capacity and the implementation of a VPP platform, enabling real-time balancing of electricity supply and demand. This initiative will considerably improve the flexibility of Croatia’s power grid and assist in integrating a larger share of intermittent renewable energy sources like solar and wind.

By supporting this groundbreaking infrastructure, the EBRD is contributing to Croatia’s efforts toward decarbonisation and energy independence. The project will assist the country in achieving its energy transition goals, decrease reliance on fossil fuels, and stabilize the electricity system amidst increasing renewable energy integration.

EBRD's Commitment

This financing highlights the EBRD’s dedication to promoting innovation in renewable energy and smart grid technologies, helping nations like Croatia expedite their shift from fossil fuels to more efficient and reliable power systems.

To date, the EBRD has invested over €5 billion in 273 projects throughout Croatia. The Bank is focused on supporting reform efforts, leveraging the advantages of EU accession to enhance transition, and restructuring and commercializing public-sector enterprises.