Financial institutions are gradually adjusting their stance toward energy storage projects and showing increasing interest in this sector, but they continue to apply strict financing criteria, particularly for small projects and new entrants to the industry, said Andrei Gavriliță, founder and CEO of Vector Capital.
“Banks have clear lending criteria, and the borrower’s own contribution is one of the key factors. We see investors who want to develop large projects but come with a low capital contribution, which complicates the financing process,” said Gavriliță at the “Cell to Revenue: Strategy & Investment Outlook” conference, organized by Energynomics with the support of SolarToday Romania, Jinko ESS, Power Konnekt, and Sinexcel.
Banks’ appetite for battery storage projects is growing, but access to financing remains contingent on a number of key factors, particularly investors’ equity contributions. Another sensitive issue is revenue predictability. In the absence of a solid market track record, it is difficult to present completely reliable financial models. Even though banks have begun to accept analyses conducted by specialized firms, they remain cautious in their risk assessments.
Furthermore, lenders view overly optimistic business plans with skepticism, particularly those that project a return on investment within a very short timeframe. Instead, they prefer realistic scenarios backed by sound assumptions and industry experience.
According to Gavriliță, investors’ expertise plays a decisive role in securing financing. Banks are more willing to support projects developed by experienced companies or in partnership with players already established in the market. For new entrants, the conditions are significantly tougher, including regarding the equity contribution, which can reach 40–60% of the investment value.
Gavriliță also said that, given that Romania needs approximately 10 GW of storage capacity to support the development of renewable energy, the banks’ stance will be essential. Both local and international financiers are expected to play a major role, with investments in the billions of euros, but within a carefully calibrated risk framework.
The “Cell to Revenue: Strategy & Investment Outlook” conference was organized by Energynomics, with support from sponsors SolarToday Romania, Jinko ESS, Power Konnekt, and Sinexcel.