May 15, 2024

Photon Energy Obtains €15 Million Loan for Solar Parks in Romania

Photon Energy NV, with support from the EU, secured a €15 million loan from the EBRD to construct and operate solar parks in Romania, further expanding its renewable energy projects while also enhancing energy management services in Poland.

Impact of the Loan

Photon Energy NV has finalized a senior secured loan agreement with the European Bank for Reconstruction and Development (EBRD) for up to €15 million. The operations of Photon Energy NV (Photon), a regional producer of renewable energy, in Romania and Poland will benefit from this loan.

According to a report from Photon Energy, the Group provides global renewable energy, water treatment, and environmental solutions. Since 2008, it's developed 160 MWp of solar plants and manages projects totalling 1.2 GWp across Australia, Hungary, Poland, and Romania. Its subsidiary, Lerta, is a major player in Poland's demand-side response services.

The agreement marks the Group's second project financing for European photovoltaic solar energy assets operating on a free market basis, without a Power Purchase Agreement (PPA) or state support, with the loan totalling EUR 15 million.

Six Solar Parks in Romania To be Completed

As part of the project, the EBRD will also back Lerta, Photon's energy management services subsidiary in Poland, with investments in research and development to enhance the company's technological expertise and broaden its service offerings. This support will position Lerta favourably for upcoming capacity market and demand-side response auctions in Poland.

The €15 million provided by EBRD to Photon Energy NV, will enable the completion of six solar parks in Romania with a total capacity of 29 MW. This investment supports Photon's expansion of renewable assets in EBRD regions and includes backing for Lerta, Photon's energy management subsidiary in Poland, for research and development. The European Union's InvestEU Programme provides a guarantee for the loan.

The European Bank for Reconstruction and Development (EBRD) invests in private sector development across 36 economies, with over €11 billion invested in Romania. As a key investor, it promotes competitiveness, inclusivity, and sustainability.

In Australia and important markets in Central and Eastern Europe, Photon Energy is now developing large-scale photovoltaic solar projects with a total capacity of over 1.2 GWp, including over 210 MWp in Romania.

Maximising the Solar Investment Potential in Romania

Georg Hotar, CEO of Photon Energy Group, remarked that the signing of the financing agreement validates their integrated business model in Romania. Their ability to develop, engineer, construct, finance, and operate PV installations, while monetizing generated electricity, has proven successful.

“As does the project funding for our projects from EBRD, our decision to commit to building more PV power plants with a total capacity of 29 MWp and selling electricity into the market indicates extremely significant trust in the Romanian energy sector,” Hotar added.

Grzegorz Zieliński, EBRD Director and Head of Energy Europe highlighted that this marks the EBRD's inaugural renewable energy endeavour in Romania structured entirely on a merchant basis. This approach showcases a market-driven option for advancing the country's renewable energy sector. Zieliński expressed confidence that such financing will contribute to fostering a more competitive renewable energy and electricity market.

“This is a market-based alternative for the growth of the nation's renewable energy sector and is the EBRD's first wholly commercial renewable energy project in Romania,” Zieliński remarked.

Photon Energy Group's partnership with the EBRD, backed by a EUR 15 million loan, highlights the bank's commitment to advancing renewable energy in Romania. This funding will aid Photon Energy in completing six solar PV plants, furthering Romania's renewable energy objectives.

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