The European Bank for Reconstruction and Development ( EBRD ) is supporting Hungary’s energy security by providing a €70 million loan to special purpose vehicles owned by Renalfa IPP, an independent power producer active across Central and Eastern Europe. 

The investment, part of a €210 million financing package alongside commercial banks, will finance the development, construction and operation of a 450-megawatt solar photovoltaic portfolio and co-located 250-megawatt /1 gigawatt-hour battery energy storage systems ( BESS ) in northeastern Hungary. 

The transaction represents one of the first instances of project financing for a utility-scale hybrid renewable asset in Central and Eastern Europe. 

 The project is among the largest renewable energy developments undertaken in Hungary. Once operational, it will deliver around 448GWh of renewable electricity, supporting Hungary’s goal of having 30% of its gross final energy consumption generated from renewable sources by 2030. 

The project will sell all of the electricity produced by the solar parks in the Hungarian market without a support scheme or a corporate power purchase agreement, sending a strong signal regarding the long-term viability of private renewable energy investments in Hungary and reinforcing confidence in market-based solutions for clean energy deployment. 

By integrating utility-scale battery storage with solar PV generation, the project will help address intermittency challenges, enhance grid flexibility, and improve energy security in a market facing increasing volatility.

"We are thankful to EBRD for its continuous support for our innovative business models and cutting-edge technologies,” says Renalfa IPP chief executive officer Ivo Prokopiev. “When operational later this year, this large hybrid asset will allow us to offer green baseload products to the Hungarian electricity market and a number of flexibility services to the grid.” 

Renalfa IPP is a joint venture between Renalfa Solarpro Group and French infrastructure fund manager RGreen Invest.