The European Bank for Reconstruction and Development (EBRD) is bolstering Croatia’s green transition with a €12.2 million loan to RP Global Novalja d.o.o., a subsidiary of Austrian developer RP Global. This significant investment supports the development of a 21 MW solar photovoltaic (PV) plant in Novalja, on the picturesque island of Pag.
Croatia’s Renewable Energy Push with Solar Plant Loan
The Novalja solar power plant project is a vital contribution to Croatia’s ambitious renewable energy targets. While state-owned utility HEP has its own broader initiative to generate 1,000 MW from renewable sources by 2030, this private-sector project by RP Global plays a crucial role in diversifying the country’s energy portfolio. This expansion is set to significantly boost the energy supply for the local community and the popular tourist destination of Novalja.
These efforts are part of a larger trend, as recent data shows that Croatia’s solar power capacity is set to surpass 1 GW by 2025, marking a major milestone in its national energy transition.
“The EBRD is delighted to support this new project in Croatia’s renewable energy sector,” said Victoria Zinchuk, EBRD Director for Croatia. “This project will aid Croatia in achieving its renewable energy goals and making progress towards the EU’s climate targets. We are also pleased that this project is being developed in a socially inclusive manner, thereby benefiting the surrounding community.”
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EBRD’s Funding for Renewable Projects Including Croatia solar plant loan
The new 21 MW solar plant will be financed through a €12.2 million loan from the EBRD, structured in two parts. The first tranche consists of €7.2 million from the EBRD’s own funds, while the second €5 million tranche is backed by an EU guarantee under the EBRD InvestEU Framework for Sustainable Transition. These funds will be used to construct the plant and cover all necessary operational infrastructure.
The project will also receive additional support from the EBRD’s Renewable District Energy in the Western Balkans programme. This initiative, backed by the Austrian Ministry of Finance, reflects a broader regional strategy, similar to efforts where an Albania solar plant secured EU backing for its development.
A National Commitment to Renewable Energy in Croatia with solar plant loan
Croatia’s long-term energy strategy is firmly focused on increasing the share of renewables in its energy mix. This approach, championed by both public entities like HEP and private developers like RP Global, not only aligns with national energy goals but also supports the broader European Union targets for a carbon-neutral future.
By actively investing in renewable energy projects and reducing its reliance on fossil fuels, Croatia is working diligently towards a more sustainable energy future.
EBRD’s Role in Croatia’s Renewable Energy Sector with solar plant loan
The EBRD has been a pivotal player in supporting Croatia’s transition to a green economy. Since beginning its operations in the country in 1993, the EBRD has committed over €5 billion to 272 projects. The bank’s consistent support, even amidst potential investment risks in Croatia’s renewable energy landscape, signals strong confidence in the sector’s potential.
The EBRD’s involvement in Croatia is part of its wider mission to promote sustainable development across Europe, as seen in milestones like Estonia’s renewable energy leap which was also supported by the bank. These investments are helping countries reduce their carbon footprint and accelerate their energy transition.
Impact of the Novalja Solar Power Plant Project and Croatia solar plant loan
The Novalja solar power plant is poised to have a significant positive impact. The 21 MW of new capacity will provide a reliable source of clean energy and is expected to reduce CO₂ emissions by approximately 6,400 tonnes annually, contributing directly to climate change mitigation.
Beyond the environmental benefits, the project is expected to create new jobs during its construction and operational phases. It will also provide a much-needed boost to the local economy, particularly in the area of sustainable tourism. This project not only advances Croatia’s renewable energy goals but also highlights further economic opportunities, such as the potential for starting a solar factory in Croatia to serve the growing regional demand.
This project is not just a step forward for the island of Pag, but a milestone for Croatia’s entire energy transition.
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