The European Bank for Reconstruction and Development (EBRD) has backed a 25 million euro investment into a 112.5 MW solar photovoltaic project in Bulgaria.
The EBRD will guarantee the 25 million euro loan from UniCredit Bulbank to the Tsenovo solar plant through its risk-sharing framework, which sees the EBRD share risk with ‘Partner Financial Institutions’ on investments into local companies.
This is the first transaction for a greenfield renewable energy project to be backed by the risk-sharing framework, EBRD said in a statement.
The Tsenovo plant is ‘sponsored’ by renewable energy developer Energy Development, a relatively small developer operational across central and eastern Europe. It owns another, smaller PV project in the centre of Bulgaria.
Bulgaria is aiming to phase out coal generation by 2038. This publication spoke last year with the CEO of Bulgarian solar developer HEC Solar (premium access) about how a raft of recent legislation is set to make that target more achievable, particularly as it pertains to the rollout of solar PV capacity.
The EBRD said that it has invested a cumulative 4.5 billion euros into Bulgaria to date. In its 2020-25 strategy for Bulgaria, the bank says it is committed to “the country’s sustainable infrastructure development through regional connectivity, green municipal solutions, decarbonisation and resource efficiency.”
