In a joint effort to bolster Croatia's renewable energy sector, Encro Group has successfully secured loans from the European Bank for Reconstruction and Development (EBRD) and Privredna banka Zagreb to fund the construction of three subsidy-free solar farms with a combined capacity of 30 MW.
Under the InvestEU programme, EBRD has extended a loan of EUR 10.6 million (USD 11.6 million) to three special purpose vehicles associated with Encro Group. Simultaneously, Privredna banka Zagreb has committed an equal amount to support the ambitious solar projects, according to Vedrana Jelusic Kasic, a member of the bank's management board.
The three solar farms, namely Gradic, Pelegrin, and Donji Humac, each with a capacity of 10 MW, are slated to be constructed in strategic locations, including the island of Brac. This initiative aims to reduce the island's reliance on mainland energy sources.
Encro Group intends to market the generated solar power, with the flexibility to explore corporate power purchase agreements (PPAs) as part of its business strategy.
Recognizing the inherent risks associated with innovative financing structures, the EBRD emphasizes that the InvestEU programme will play a crucial role by offering a first-loss guarantee. This strategic measure is designed to mitigate risks and provide a degree of financial security for the solar projects, aligning with the broader goal of fostering sustainable and diversified energy sources in Croatia.