Raiffeisen Bank International has closed a €60 million financing deal with Econergy to support its ambitious 155MW solar project in Romania. The Ratesti project, a joint venture between Econergy and Nofar Energy, stands as one of the largest solar initiatives in Romania and is poised to connect to the electricity grid imminently.
The construction investment for the Ratesti project has totaled €102 million. Raiffeisen Bank International, operating in Austria and Central Europe, has played a pivotal role in facilitating this significant funding agreement.
Econergy highlighted that this financing arrangement is groundbreaking in Romania, representing a departure from traditional power purchase agreements by being based on electricity merchant sales.
Eyal Podhorzer, Co-Founder and CEO of Econergy, expressed his satisfaction, stating, “The signing of the financing agreement marks another significant milestone in the journey of the Ratesti project and Econergy.” He added that the financing will enable Econergy to draw €30 million from the project company.
The imminent connection of the Ratesti project to the electricity grid is the next major milestone, according to Podhorzer. Econergy, having provided project management services (EPCm) to the Ratesti project company, will continue to do so for the next decade, leveraging its expertise in project management.
Econergy is actively engaged in three other projects under construction, totaling 234MW, and plans to connect additional projects over the next two quarters. “With Ratesti included, we will have approximately 390MW of operating assets in the next few months,” Podhorzer stated.
This development underscores Raiffeisen Bank International's commitment to supporting sustainable energy initiatives and marks a notable advancement in Romania's renewable energy landscape.
The neutral and groundbreaking financing agreement is anticipated to set a precedent for future renewable energy projects in the region, emphasizing the shift toward electricity merchant sales in the industry.
