Green Forum • 14 February, 2024 at 8:00 AM
The European Bank for Reconstruction and Development (EBRD) will guarantee up to €25 million for a loan provided by UniCredit Bulbank to the Tsenovo solar plant in Bulgaria.
This financial support will facilitate the construction and operation of the Tsenovo solar plant, which will contribute 112.5 MW of new solar generation capacity to Bulgaria's electricity grid. The project is spearheaded by Enery Development, a Vienna-based renewable energy infrastructure firm with a portfolio of 273 MW in operational renewable energy projects across central and eastern Europe. Enery is backed by the Three Seas Initiative Investment Fund.
This initiative aligns with Bulgaria's renewable energy objectives, including the aim to phase out coal-fired power generation by 2038. The EBRD's strategy for Bulgaria for the period of 2020-2025 underscores its dedication to promoting sustainable infrastructure development in the country, emphasizing regional connectivity, green municipal solutions, decarbonization, and resource efficiency. The Tsenovo solar plant project will advance decarbonization efforts by increasing the proportion of renewable energy generation in Bulgaria.
Notably, this transaction marks the first greenfield renewable project financed under the EBRD's risk-sharing framework, showcasing the institution's commitment to employing innovative financing mechanisms such as risk sharing to assist partner banks facing capital and liquidity constraints.
The EBRD has been a significant investor in Bulgaria, having invested €4.5 billion in 292 projects in the country. Its primary focus remains on enhancing the competitiveness of the private sector, strengthening the financial sector, and addressing infrastructure needs.