Econergy has secured financing agreements totalling approximately €229m ($265m) for its Părău 2 solar and battery energy storage system (BESS) project in Brașov County, Romania.
The funding comes from a consortium of six lenders comprising Banca Comercială Intesa Sanpaolo România with its subsidiary, Privredna banka Zagreb; the Black Sea Trade and Development Bank; the European Bank for Reconstruction and Development (EBRD); Exim Banca Românească; NLB; and OTP Bank.
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This project will combine a 342MW-peak (MWp) solar photovoltaic (PV) plant with a co-located 150MW/300MW-hour (MWh) BESS.
The storage facility will enable electricity generated on-site to be stored and supplied to the grid when needed, supporting the integration of renewable energy and increasing the flexibility of Romania’s power system.
Părău 2 is currently under construction and is expected to begin commercial operation by early 2028.
The aggregate financing package includes an EBRD contribution of up to €120m, split between an ‘A’ loan of up to €57m and a ‘B’ loan of up to €63m.
The ‘B’ loan includes a €3.6m debt service reserve facility provided by Privredna banka Zagreb and NLB.
Intesa Sanpaolo and Exim Banca Românească will also jointly provide a €25m value-added-tax facility and a €9.5m letter of credit facility supporting the project’s contract for difference (CfD) participation.
Nearly €114.4m of the main facility is supported by an EU InvestEU guarantee, which aims to reduce risks associated with the project’s merchant revenue exposure.
Părău 2 secured the largest capacity award in Romania’s inaugural CfD auction, with a 125MW-alternating current allocation at a strike price of €49.4/MWh for a 15-year term after the project commences operations. The remaining generating capacity will be exposed to market prices.
Econergy CEO Eyal Podhorzer said: “Securing €229m on Părău 2 is a milestone for Econergy and for the Romanian market.
“Six leading international lenders committed to our flagship project on terms that reflect their confidence in how we build and operate, and that gives us the platform to move on the rest of our European pipeline.”
The loan agreements remain subject to standard precedent conditions, with financial close anticipated within three months.
