INVL Renewable Energy Fund I has secured a €29.3 million loan for the construction of its 71 MW solar project in Romania, marking a significant step in its regional renewable energy efforts. This development underscores the growing investment momentum in Central and Eastern Europe’s green transition.
Financing Details for the Romania solar project
The crucial financing for the project’s construction phase has been secured from Kommunalkredit Austria AG, a financial institution specializing in infrastructure and energy financing. This partnership highlights the confidence of specialized European lenders in Romania’s renewable energy sector. The project will be located in Dolj County, with construction expected to be completed by September 2026.
This 71 MW solar project is being developed with a clear commercial strategy. While specific offtake agreements are still in development, the fund’s typical approach involves securing long-term power purchase agreements (PPAs) for a portion of the capacity to ensure stable revenue, while selling the remaining energy on the open market. This hybrid model helps balance financial security with the potential for higher market-based returns, contributing a significant amount of clean energy to Romania’s grid.
The loan agreement signifies a long-term commitment to the project’s success and its role in bolstering the region’s energy independence.
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INVL’s Strategic Expansion with the Romania solar project
INVL Renewable Energy Fund I is managed by INVL Asset Management, part of the Lithuania-based INVL group, a prominent investment management and life insurance company. Established in 2021, the fund strategically targets renewable energy projects in Central and Eastern Europe (CEE), a region ripe for green energy development.
This 71 MW plant is INVL’s third large-scale solar project in Romania, solidifying the country as a cornerstone of its portfolio. The fund’s updated portfolio now stands at a total capacity of 389 MW, with 356 MW in Romania and over 32 MW in Poland, backed by total investments exceeding €250 million. Such large-scale developments rely on a complex global supply chain, from sourcing essential solar panel raw materials to understanding the intricacies of the solar panel manufacturing process.
The fund’s managing team, led by CEO Marius Šulga, brings extensive experience in the renewable energy sector. Their expertise has been instrumental in navigating the regulatory and financial challenges associated with bringing large-scale projects from concept to reality, a process that requires deep knowledge of everything from the basics of solar panel manufacturing to securing project finance.
Romania’s Renewable Energy Landscape and the solar project
Romania is actively accelerating its energy transition, aiming to increase its share of renewable energy to 30.7% by 2030 in line with the European Union’s broader climate objectives. For homeowners and tenants in Germany, Romania’s progress is more relevant than it might seem. As part of an interconnected European energy grid, the addition of stable, clean power sources in countries like Romania enhances grid stability and energy security for the entire bloc, potentially helping to moderate volatile energy prices across the continent.
To attract investment, the Romanian government has implemented supportive policies, recently launching its third Contracts for Difference (CfD) auction for onshore wind and solar projects. This mechanism provides investors with predictable long-term revenue, reducing risk and encouraging further development. The scale of these utility-grade farms requires sophisticated solar panel manufacturing machines and a significant upfront investment, which is detailed in a typical solar panel manufacturing plant cost breakdown.
The INVL project joins other major renewable initiatives in the country, including large-scale photovoltaic developments by companies like Shanghai Electric and the expansion of the Deleni wind farm by PPC Renewables. Together, these projects are transforming Romania into a key player in Europe’s clean energy future. The INVL Renewable Energy Fund I’s 71 MW solar project is not just a milestone for the company, but a testament to the collaborative European effort to build a sustainable and secure energy network.
If you are interested in the technologies and business models driving this transition, you can deepen your knowledge with our free e-course on the solar industry.
