Israel-headquartered independent power producer (IPP) Ecoenergy has closed a €60 million ($65.5 million) funding facility with Austrian bank Raiffeisen for its 155MW Ratesti solar project in Romania. The funding marks a significant milestone for the project, set to become the largest solar farm in Romania, as it moves toward imminent grid connection. Ecoenergy purchased the project in November 2021 at the ready-to-build stage, investing €102 million in its construction.
Notably, this funding facility stands out as the first renewable power deal signed without a related power purchase agreement (PPA), underlining the project's financial viability and Ecoenergy's confidence in its success.
Ecoenergy co-founder and CEO Eyal Podhorzer commented on the achievement, stating, “The signing of the financing agreement marks another significant milestone in the journey of the Ratesti project and Ecoenergy.” He highlighted that the funding would enable Ecoenergy to draw €30 million from the project company, with the next crucial milestone being the project's imminent grid connection.
Ecoenergy has provided engineering, procurement, and construction (EPC) services for the Ratesti project and plans to manage the facility for the next decade. The company anticipates the facility to generate an average annual revenue of €20.1 million for the first five years of operation, contributing to total earnings of €17.6 million.
This development adds to positive momentum in the Romanian solar sector, which has seen substantial capacity installations. The Romanian Photovoltaic Industry Association (RPIA) projects an increase from 1.4GW to 2.5GW by the end of 2023 and aims for 11.2GW by the close of the decade. Despite recent setbacks, including the cancellation of a 1.5GW solar park by state-owned utility Hidroelectrica, the Romanian solar sector remains dynamic, with projects like Ratesti contributing to its growth.
