Econergy, a leading renewable energy company, has successfully secured financing agreements totaling around €229m ($265m) for its Părău 2 solar and battery energy storage system project located in Brașov County, Romania.
The funding for this project has been provided by a consortium of six lenders, including Banca Comercială Intesa Sanpaolo România and 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.
The Părău 2 project will combine a 342MW-peak solar photovoltaic (PV) plant with a co-located 150MW/300MW-hour battery energy storage system (BESS). This innovative storage facility will enable the electricity generated on-site to be stored and supplied to the grid as needed, supporting the integration of renewable energy and enhancing the flexibility of Romania’s power system.
Currently under construction, the Părău 2 project is expected to commence commercial operation by early 2028. The financing package includes an EBRD contribution of up to €120m, with an ‘A’ loan of up to €57m and a ‘B’ loan of up to €63m. Additionally, 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 jointly provide a €25m value-added-tax facility and a €9.5m letter of credit facility to support the project’s contract for difference (CfD) participation. A significant portion of the main facility, amounting to nearly €114.4m, is backed by an EU InvestEU guarantee to mitigate risks associated with the project’s merchant revenue exposure.
In Romania’s inaugural CfD auction, Părău 2 secured the largest capacity award with a 125MW-alternating current allocation at a strike price of €49.4/MWh for a 15-year term post-operation commencement. The remaining generating capacity will be subject to market prices.
Eyal Podhorzer, CEO of Econergy, expressed his satisfaction with securing €229m for the Părău 2 project, calling it a significant milestone for both Econergy and the Romanian market. He emphasized the confidence shown by six leading international lenders in the project, highlighting their support for Econergy’s development and operational capabilities.
The loan agreements are subject to standard precedent conditions, with financial close expected within the next three months. “Econergy secures $265m financing for Părău 2 project in Romania” was originally reported by Power Technology, a brand owned by GlobalData.
