BAKU, Azerbaijan, April 20. The European Bank for Reconstruction and Development (EBRD) is strengthening Hungary’s energy security through a €70 million loan to special purpose vehicles owned by Renalfa IPP, an independent power producer operating across Central and Eastern Europe, Trend reports via the Bank.
The financing forms part of a broader €210 million package arranged together with commercial banks and will support the development, construction and operation of a 450 MW solar photovoltaic (PV) portfolio. The project also includes 250 MW/1 GWh of co-located battery energy storage systems (BESS) in northeastern Hungary.
This transaction marks one of the first project-financed utility-scale hybrid renewable energy assets in Central and Eastern Europe. It is also among the largest renewable energy developments in Hungary to date.
Once completed, the project is expected to generate approximately 448 GWh of clean electricity annually. This output will contribute to Hungary’s national target of achieving 30% renewable energy in gross final consumption by 2030.
Notably, the electricity generated by the solar parks will be sold directly on the Hungarian market without reliance on subsidies or corporate power purchase agreements. This approach is seen as a strong signal of confidence in the long-term viability of market-based renewable energy investments in the country.
The integration of large-scale battery storage with solar generation is expected to help mitigate intermittency challenges, improve grid flexibility and strengthen energy security in a market increasingly exposed to volatility.
Renalfa IPP is a joint venture between Renalfa Solarpro Group and French infrastructure fund manager RGREEN INVEST, and has established itself as an active independent power producer across the region.
Since beginning operations in Hungary, the EBRD has invested more than €3.7 billion across 220 projects in the country, underscoring its long-term role in supporting economic development and green transition efforts.