The European Bank for Reconstruction and Development, in collaboration with multiple financial institutions, has provided a financing plan totaling nearly 230 million euros for the P ă r ă u 2 photovoltaic energy storage project in Brasov, Romania. This is the first time EBRD has provided financing support for hybrid solar energy projects in Romania, and has also created a replicable and diverse financial sample for the large-scale implementation of renewable energy in Central and Eastern Europe.

Layered financing structure disperses project risks

The total amount of debt financing for the entire project can reach up to 229 million euros, of which EBRD provides up to 120 million euros in Class A and Class B loans, with a supporting debt reserve fund of 3.6 million euros. Black Sea Trade and Development Bank OTP Bank, Romanian Export Import Bank and other institutions simultaneously participated in the joint financing, combined with 25 million euros of value-added tax financing and 9.5 million euros of letter of credit financing, covering the full cycle funding needs of the project from development and construction to operation. The first loss guarantee mechanism under the EU's InvestEU program provides a risk floor of up to 115 million euros for EBRD's core loans, significantly reducing the income volatility risk of projects relying on electricity market transactions.

Policy support to lock in long-term returns

The project has a total installed capacity of 342 megawatts of photovoltaics and is equipped with a 150 megawatt and 300 megawatt hour energy storage system, making it a benchmark project for Romania's current round of new energy expansion. It won a 125 MW quota in the first round of the Romanian CFD auction, locking in an executed electricity price of 49.4 euros per megawatt hour, with a guarantee period of up to 15 years, and the remaining capacity will earn profits through market-oriented trading. This price difference contract mechanism, assisted by EBRD technology, will release a total of 5 gigawatts of solar and onshore wind power installations in Romania, paving the way for policy implementation for more new energy projects in the future. Keywords: photovoltaic energy storage, new energy projects

The landing of the P ă r ă u 2 project, from the combination of multiple financial instruments to the dual support of EU guarantees and local price difference contracts, marks the formal maturity of the commercial development of Romania's photovoltaic energy integration. This development model that balances risk prevention and stable returns will also provide important reference for new energy projects in the entire Central and Eastern European region.Editor/Cheng Liting