Renalfa IPP, an independent renewable energy producer based in Vienna, has secured a Holdco financing of 315 million euros from a consortium of banks led by the European Bank for Reconstruction and Development (EBRD). The financing will support a 1.2 billion euros investment program to deploy 1.6 GW of renewable energy capacity and some 3.3 GWh of energy storage systems (BESS) in Romania, Bulgaria, Hungary and North Macedonia.
The investment will deliver around 2.3 TWh of green electricity annually – equivalent to the consumption of 920,000 households – and marks a new stage in the region’s energy transition by integrating early battery storage to balance intermittency and increase the stability of the national grid.
Innovative financial instruments and European partnerships
The EBRD lent 100 million euros of its own funds and mobilized a further €100 million from commercial participants through an A/B loan structure. For the first time, this mobilization was backed by a guarantee from the European Union’s InvestEU programme, which reduces the risks associated with free market power generation and new storage technologies.
Alongside the EBRD, the financing club includes the Black Sea Trade and Development Bank (BSTDB), OTP Bank, Nova Ljubljanska Banka (NLB), UniCredit and Kommunalkredit. Kommunalkalkredit also acted as sole financial advisor to Renalfa, coordinating the structuring process together with UniCredit.
In addition to financing, the EBRD will support the development of a BESS skills education initiative, involving universities in the region, and will support campaigns to attract women to careers in energy – a key complementary direction for the sustainability of the energy transition.
Romania is an active part of a developing regional network
Renalfa IPP is already present in Romania. The integrated model proposed by the company – which brings together the development, construction and operation of hybrid assets (generation + storage) – is now gaining further financial and institutional validation. With the early implementation of co-localized storage, Renalfa IPP becomes a player able to offer baseload green products, essential for energy security and reducing dependence on fossil fuels.
“The successful raising of growth funding is an important milestone for Renalfa IPP and for our whole group. It proves the competitiveness of our integrated model for developing, investing and operating large hybrid assets. The early implementation of long duration co-located BESS allows Renalfa IPP to start offering green baseload products to market in CEE for the first time,” said Ivo Prokopiev, CEO of Renalfa IPP. In her turn, Mathilde Ketoff, Partner at RGREEN INVEST – the French partner in the Renalfa joint venture – emphasized that “Renalfa IPP’s pioneering spirit, invaluable expertise and established leadership is key to drive the energy transition across Central and Eastern Europe. Our strong belief in this collaboration, which began in 2022, is further solidified by our decision to reinject equity into our venture”.
A clear signal to investors and developers in the region
Through the scale of the investment and the involvement of European-caliber financiers, the transaction reconfirms the international interest in renewable energy markets in the region – including Romania. Renalfa’s business model, with its focus on hybrid solutions and local partnerships, can become a source of inspiration and a catalyst for Romanian projects in their early stages. In a context marked by uncertainties regarding support schemes and network access, mobilizing private capital with European support offers a clear and feasible way to accelerate the implementation of solid projects.
It is an opportune moment for developers, authorities and investors to rethink the approaches so far and explore new models for integrating storage technologies, together with complex financial partnerships to support the sustainability of the energy transition in Romania.