The European Bank for Reconstruction and Development (EBRD) and Vienna-based Raiffeisen Bank International are providing a €110 million financing package to build and operate two solar photovoltaic power plants in southeastern Romania.

The Iepuresti and Ghimpati projects, with a total installed capacity of 300 megawatts, illustrate the growing activity in Romania’s renewables market, in the wake of key regulatory changes to support the country’s ambitious green energy programme.

An EBRD loan of €55 million, to be matched by €55 million from Raiffeisen Bank, will be split into two tranches of €25 million and €30 million. The first tranche will be partially covered by a first loss guarantee provided by the European Union under the InvestEU programme.

The owners of the Iepuresti and Ghimpati projects are RTG Solar Energy and Solis Imperium, both limited liability companies incorporated in Romania and ultimately majority owned by OY Nofar Energy, an Israeli renewable energy company listed on the Tel Aviv Stock Exchange.

The solar power plants are expected to generate an annual 386 gigawatt-hours of renewable electricity and avoiding about 160,000 tonnes a year of carbon dioxide emissions. The electricity produced will be sold on the local market.

 “We are excited to support Nofar Energy’s renewable energy investments in Romania, with the support of the InvestEU guarantee," says Grzegorz Zielinski, EBRD head of energy for Europe. "These solar power plants will increase Romania’s renewable capacity, supporting the country’s ambition to add 11.9GW of new renewable capacity by 2030.”

Following a decade of limited investment, Romania’s renewable energy sector is experiencing renewed momentum. This builds on EU-wide commitments enacted under the Fit for 55 and REPowerEU initiatives, which aim to increase renewable energy production and reduce harmful emissions, the EBRD says.

In 2023, Romania committed to increasing the share of renewables in its total energy consumption from 24.3% in 2019 to a more ambitious 36.2% by 2030 by adding 11.9GW of new renewable capacity.