In late April, Austrian renewable energy company RP Global began construction of the 21 MW Novalja solar power plant on the Croatian island of Pag. This project is set to become the largest solar facility in Croatia to date.
The European Bank for Reconstruction and Development (EBRD) is supporting the development with a senior, non-recourse loan of up to 12.2 million euros. This financing is provided under the EBRD’s InvestEU Framework for Sustainable Transition.
The EBRD’s contribution is divided into two parts: an initial tranche of 7.2 million euros and a second tranche of 5 million euros, which includes a 20 percent first-loss risk coverage. The total estimated investment in the project is 16.3 million euros.
What sets the Novalja plant apart is its hybrid revenue model. While the project will benefit from Croatia’s national renewable energy support schemes in its early stages, it is designed to gradually transition to merchant market sales over time. This flexible offtake approach represents an innovative step in project financing. In 2023, Croatia’s energy market operator HROTE awarded support to 420 MW of solar and hydropower capacity, including 15 MW from the Novalja project.
The solar plant will include 35,776 panels and is expected to generate approximately 31,000 megawatt-hours of electricity annually—enough to meet the needs of about 12,000 households.
