- EBRD lends €70 million as part of a €210 million financing deal with commercial banks to Renalfa IPP special purpose vehicles
- Investment will finance the development of a 450 MW solar photovoltaic park with a 250 MW /1 GWh co-located battery energy storage system
- Renalfa IPP is an independent power producer active across Central and Eastern Europe
The European Bank for Reconstruction and Development (EBRD) is supporting Hungary’s energy security by providing a €70 million loan to special purpose vehicles owned by Renalfa IPP, an independent power producer active across Central and Eastern Europe.
The EBRD’s investment, provided as part of a €210 million financing package alongside commercial banks, will finance the development, construction and operation of a 450 MW solar photo-voltaic (PV) portfolio and co-located 250 MW/1 GWh battery energy storage systems (BESS) in northeastern Hungary.
This groundbreaking transaction represents one of the first instances of project financing for a utility-scale hybrid renewable asset in Central and Eastern Europe.
The project is among the largest renewable energy developments undertaken in Hungary. Once operational, the project will deliver around 448 GWh of renewable electricity, supporting Hungary’s goal to have 30 per cent of its gross final energy consumption generated from renewable sources by 2030.
The project will sell all of the electricity produced by the solar parks in the Hungarian market without a support scheme or a corporate power purchase agreement, sending a strong signal regarding the long term viability of private renewable energy investments in Hungary and reinforcing confidence in market based solutions for clean energy deployment.
Meanwhile, by integrating utility scale battery storage with solar PV generation, the project will help address intermittency challenges, enhance grid flexibility and improve energy security in a market facing increasing volatility.
'We are thankful to EBRD for its continuous support for our innovative business models and cutting-edge technologies. When operational later this year, this large hybrid asset will allow us to offer green baseload products to Hungarian electricity market and a number of flexibility services to the grid,' said Ivo Prokopiev, CEO of Renalfa IPP.
Anca Ionescu, EBRD Regional Head Hungary, Slovakia and Czech Republic, commented: 'This investment marks an important milestone for the EBRD in Hungary, as it is our first energy project in the country since 2010. Returning to the Hungarian energy sector with such a large-scale and innovative project underlines the Bank’s renewed commitment to supporting the green transition and strengthening energy security in the country.'
Grzegorz Zielinski, EBRD Director, Head of Energy Europe, added: 'We are very pleased to support our long-standing client, Renalfa IPP, with another groundbreaking project in Hungary. By combining large-scale solar generation with battery storage, this investment will play a key role in strengthening Hungary’s energy system, enhancing security of supply and setting an important precedent for the wider Central and Eastern Europe region.'
Renalfa IPP, a joint venture between Renalfa Solarpro Group and French infrastructure fund manager RGREEN INVEST, is an experienced regional independent power producer active across Central and Eastern Europe.
The investment is fully aligned with the EBRD’s strategy in Hungary to support energy security and green transition.
Since the start of its operations in Hungary, the EBRD has invested more than €3.7 billion in the country across 220 projects.
Source: EBRD
