The European Bank for Reconstruction and Development (EBRD) is granting €12.2 million to fund the building of two solar power plants in Romania’s Dolj County. This financial support is part of a limited recourse financing arrangement aimed at enhancing the development of renewable energy projects in the country and helping Romania achieve its ambitious renewable energy goals.

Source: European Bank for Reconstruction and Development

The recipient of this funding is Danube Solar Five, a special purpose vehicle registered in Romania and owned by Lithuania’s INVL Renewable Energy Fund I, managed by UAB INVL Asset Management (INVL), a company with over three decades of experience and more than €1 billion in assets under management in real estate, energy, and infrastructure in the Baltics and eastern Europe.

The EBRD's contribution constitutes half of a €24.4 million bond intended for constructing the solar plants in Robanesti and Pielesti, which will collectively have a capacity of 60MW. The remaining €12.2 million will be provided by co-lender Eiffel Investment Group, a Paris-based energy infrastructure investment fund and a current partner of the EBRD.

Eiffel Investment Group, with €6.4 billion in assets under management, is supported by the Impala group led by entrepreneur Jacques Veyrat. The group specializes in energy transition, life sciences, agri-food, and digital sectors while focusing on sustainable investments that deliver positive social and environmental impacts.

Committed to a sustainable future, Eiffel Investment Group's investments aim to generate strong financial returns alongside social and environmental benefits. The group's team comprises approximately 100 professionals across France, BeNeLux, the United States, and the UAE.

Romania, as an EU member, is dedicated to implementing the EU’s Fourth Energy Package, “Clean Energy for all Europeans,” to enhance the flexibility of the EU electricity market and increase renewable energy integration. The country has enhanced its regulatory framework for renewables, marking the full liberalization of the local energy market since January 1, 2021.

Romania's renewable energy targets align with the EU's Fit for 55 and REPowerEU plan to boost renewables production by 2030. By 2023, Romania aims to raise the share of renewables in its total energy consumption from 24.3% in 2019 to a more ambitious 36.2% by 2030, adding 11.9 GW of new renewable capacity.

While CBFs are now common practice in Western Europe, only one construction bridge facility has been financed in Romania to date. The EBRD’s involvement in the segment provides the market demonstration effects for other potential financiers in the country to follow suit

The region has seen investments primarily from independent power producers, with limited involvement from institutional investors due to construction and development risks. Limited recourse construction bridge facilities (CBFs) offer a solution by allowing developers to navigate these initial risks.

CBFs are anticipated to attract more capital into the renewables sector, crucial for meeting the region’s green transition targets. The EBRD, a longstanding partner of Romania, has invested close to €11 billion in 533 projects in the country to date.