The European Bank for Reconstruction and Development (EBRD) is lending €15 million(US$16.23million) to Photon Energy NV (Photon), a regional renewable energy producer, to support its activity in Romania and Poland.

The EBRD’s investment will enable Photon to complete the construction of a portfolio of six solar parks in Romania with a total installed capacity of 29 MW. This, in turn, will boost Photon’s capacity to advance the development of other renewable assets in the EBRD regions.                                                 

As part of the project, the EBRD will also support Lerta, Photon’s energy management services subsidiary in Poland, with investments in research and development to help expand the company’s technological know-how and broaden its service offer. This will enable Lerta to be well positioned in the incoming capacity market and demand-side response auctions in Poland.

Fast-growing renewable energy developers like Photon are central to the achievement of the European Union’s (EU) energy policy and decarbonisation targets. At the same time, efficient markets for energy services are key to ensuring the most efficient use of available renewable sources, and remain critical for securing grid stability and maintaining a demand-supply balance in the electricity network.

The EBRD loan benefits from first-loss risk cover from the European Union (EU) under its InvestEU programme.

“This is the EBRD’s first renewable energy project in Romania to be structured on a fully merchant basis and demonstrates a market-based alternative for the development of the country’s renewable energy sector. We are confident that such financing will pave the way for a more competitive renewable energy and electricity market,” said EBRD Director, Head of Energy Europe Grzegorz Zieliński.

Photon Energy NV is a regional renewable energy producer with an operating portfolio of 133 MW in small to mid-sized solar PV power plants across Romania, Czechia, Slovakia, Hungary and Australia. The company, through its subsidiary Lerta, is also one of the largest providers of demand-side response services in Poland.

The EBRD, a leader in climate finance, has to date invested over €11 billion in 528 projects in Romania, and more than €14 billion in 527 projects in Poland.