South East Europe’s energy transition is no longer financed only by state utilities, government budgets and traditional bank loans. The capital stack is widening. Development banks remain central, but green bonds, IPOs, listed utilities, institutional capital, corporate PPAs and blended-finance structures are becoming more important.
This is a major change for the region. For years, energy investment in South East Europe was dominated by incumbent utilities and public-sector balance sheets. That model is still powerful, especially in electricity networks, hydropower and legacy thermal generation. But renewable growth, grid needs and decarbonisation targets require more capital than public budgets alone can provide.
Development finance institutions are leading the transition. In June 2026, the EBRD announced a €175 million loan to Public Power Corporation to support wind and solar projects across Bulgaria, Greece and Romania. The financing is expected to enable about 400 MW of new wind and solar capacity and benefits from InvestEU support.
The EIB is also active. The EIB Group invested €822 million in the Western Balkans in 2025, and highlighted a €103 million loan for the 132 MW Poklečani wind farm in Bosnia and Herzegovina. Once operational, that project is expected to generate 437 GWh of electricity annually.
Equity capital markets are becoming part of the story. Hidroelectrica’s €1.9 billion Bucharest listing in 2023 was the largest IPO in Romania’s history and one of Europe’s largest that year. The deal gave investors liquid exposure to one of the region’s most important renewable-heavy electricity producers.
Premier Energy offers another example of the public-market route. EBRD invested RON 77.1 million, or about €15.5 million, in Premier Energy’s IPO, supporting a company active in Romania and Moldova and helping develop local equity capital markets.
Debt capital markets are also becoming more relevant. PPC announced a proposed €775 million green senior notes offering due 2030, with an amount equivalent to the net proceeds intended for eligible green projects under its green financing framework.
These transactions point to a broader shift. Energy companies in South East Europe are learning to finance the transition through a mix of corporate debt, project finance, public equity, green bonds and development-bank guarantees. Investors are learning to evaluate the region not only as a policy story, but as an asset class.
But capital is becoming more selective. A renewable project is not bankable merely because it is green. Lenders and bond investors now ask more detailed questions: Is the grid connection secured? Is there curtailment risk? What is the capture price? Are balancing costs modelled correctly? Is there a corporate PPA? How liquid is the hedge market? What happens under CBAM? Is the permitting framework stable?
ACER’s wider EU market-integration analysis highlights one of the key constraints: long-term forward markets remain relatively illiquid, with trading beyond two years still rare in many markets. That limits the price signals available for long-term investment and increases the importance of PPAs, CfDs and structured financing.
The capital is arriving. But it is not blind capital. South East Europe’s energy sector is becoming more investable precisely because investors are becoming more demanding.
