The European Bank for Reconstruction and Development (EBRD) and Raiffeisen Bank International are providing a €122 million financing package to build and operate two solar photovoltaic power plants in south-eastern Romania.

Clifford Chance Badea advised the leading renewable energy investor Nofar Energy, through its Romanian entities Solis Imperium and RTG Solar Energy, in the signing of a term loan facility agreement and a VAT facility agreement.

The support is part of a larger collaboration between Clifford Chance and Nofar Energy, related to renewable energy projects in Romania with a total installed capacity of 643 MW, on matters including corporate M&A, Engineering, Procurement and Construction (EPC) and Operation and Management (O&M) contracts, as well as regulatory aspects.

The proceeds will be used, among others, for the development, construction, and operation of two solar photovoltaic plants in Giurgiu County, with a combined capacity of 315 MW (169 MW in Iepuresti and 146 MW in Ghimpati).

The Nofar Energy in-house team was coordinated by Favi Stelian (CEO Nofar Energy Romania), Andreea Gilicel (Financial Manager), Roxana Gherghe (CFO), Ayana Wechsler (VP Global Operations) and Alex Greenberg (Senior Legal Counsel).

The Clifford Chance core team advising on the deal included Partners Nadia Badea and Madalina Rachieru-Postolache, Oana Ionascu (Senior Associate) and Adelina Seserman (Associate).

Clifford Chance Badea clients benefit from the entire experience and know-how of the Clifford Chance offices in countries that are more advanced in the development of renewable energy projects. The local team advises developers, infrastructure funds, utility companies and banks throughout the entire project development cycle of a renewable energy project – sell side or buy side M&A, signing of EPC and O&M contracts, Power Purchase Agreements (PPAs), Project Finance, development contracts, regulatory matters including project amendments, or litigation.

“This achievement is not just a milestone; it is the logical next step in Nofar’s ongoing journey of growth and excellence. The successful completion of these projects will play a crucial role in supporting Romania’s ambitious goal for decarbonisation, contributing to a greener future for the region,” Favi Stelian said.

“The transaction further builds upon our market-leading, multidisciplinary Energy practice and consolidates our strong relationship with Nofar Energy, a high-profile investor whose ambitious plans places them at the forefront of Romania’s green energy transition,” Nadia Badea, Head of the Energy Practice in Bucharest, added.

“We are excited to support Nofar Energy’s renewable energy investments in Romania, with the support of the InvestEU guarantee. These solar power plants will increase Romania’s renewable capacity, supporting the country’s ambition to add 11.9 GW of new renewable capacity by 2030,” Grzegorz Zielinski, EBRD Head of Energy Europe, noted.

The Iepuresti and Ghimpati projects mark the growing confidence in Romania’s renewables market in the wake of key regulatory changes to support the country’s ambitious green energy programme.

An EBRD loan of €55 million, to be matched by €55 million from Raiffeisen Bank International, will be split into two tranches of €25 million and €30 million. The first will be partially covered by a first loss guarantee provided by the European Union under the InvestEU programme.

The project is expected to generate an annual 386 GW/h of renewable electricity, avoiding about 160,000 tonnes a year of carbon dioxide emissions. The electricity produced will be sold on the local market.

Following a decade of limited investments, Romania’s renewable energy sector is experiencing renewed momentum.

The EBRD is a key supporter of the country’s green transition, which will not only improve the environment but also safeguard the country’s energy security in the context of Russia’s war on Ukraine.

Romania’s growing ambition in this area builds on EU-wide commitments enacted under the Fit for 55 and REPowerEU initiatives, which aim to increase renewable energy production and reduce harmful emissions. In 2023, Romania committed to increase the share of renewables in its total energy consumption from 24.3 per cent in 2019 to a more ambitious 36.2 per cent by 2030 by adding 11.9 GW of new renewable capacity.