EBRD Backs €82M Solar and Battery Storage Project to Boost Hungary’s Energy Security
The European Bank for Reconstruction and Development has committed €70 million ($82 million) to support a major solar and battery energy storage (BESS) project in Hungary, aimed at strengthening energy security and grid flexibility.
The financing forms part of a wider €210 million package alongside commercial lenders and will fund the development of a 450 MW solar photovoltaic portfolio combined with a 250 MW / 1 GWh battery storage system in northeastern Hungary.
The project is being developed by Renalfa IPP, through a group of special purpose vehicles.
Once operational, the hybrid installation is expected to generate approximately 448 GWh of renewable electricity annually, contributing to Hungary’s target of sourcing 30% of its energy from renewables by 2030.
By combining large-scale solar generation with co-located battery storage, the project aims to address the variability of renewable energy output while enhancing grid stability. The integration of BESS will allow excess solar energy to be stored and deployed when needed, improving system flexibility and reliability.
Commenting on the development, Renalfa IPP CEO Ivo Prokopiev said:
“We are thankful to EBRD for its continuous support for our innovative business models and cutting-edge technologies.”
He added:
“When operational later this year, this large hybrid asset will allow us to offer green baseload products… and a number of flexibility services to the grid.”
From the EBRD, Regional Head Anca Ionescu described the investment as a milestone, stating:
“This investment marks an important milestone… our first energy project in the country since 2010.”
She added that the project reflects the bank’s “renewed commitment to supporting the green transition and strengthening energy security in the country.”
The project is among the first utility-scale hybrid renewable developments in Central and Eastern Europe to secure project financing, setting a precedent for similar investments in the region.
Notably, electricity generated by the solar plants will be sold directly on the market without government subsidies or corporate power purchase agreements, highlighting the growing viability of merchant renewable energy projects.
Overall, the investment reflects a broader shift toward integrating renewable generation with storage technologies, enabling more reliable and resilient energy systems as countries accelerate their energy transition.
Source: power-technology.com
