Renewable Energy Project Financing in Europe: A Strategic Look at Econergy's Expansion in Romania

The European renewable energy transition is accelerating, with countries like Romania emerging as pivotal players in the race to decarbonize power systems. For investors, hybrid solar + storage projects represent a compelling opportunity, combining the scalability of solar with the reliability of energy storage. Econergy's recent expansion in Romania-centered on its 87 MW Oradea solar project and a planned 68 MW battery energy storage system (BESS)-offers a case study in how strategic financing, policy alignment, and market dynamics can drive long-term profitability in high-growth markets.

Romania's Policy Framework: A Catalyst for Renewable Growth

Romania's renewable energy market has gained momentum since 2023, driven by a robust policy framework. The government's Contracts for Difference (CfD) scheme, which guarantees fixed prices for renewable energy producers over 15 years, has been a cornerstone of this growth. The second CfD auction in 2025, supported by the EBRD, allocated 4.2 GW of capacity-surpassing the target of 3.5 GW-and saw competitive bids, particularly in solar PV projects.

Complementing these efforts, Law 255/2024 mandates energy storage for prosumers with PV systems between 10.8 kW and 400 kW, requiring existing installations to adopt storage by 2027. This legislation aims to mitigate grid congestion and enhance system stability, creating a regulatory tailwind for hybrid projects like Econergy's Oradea initiative.

Econergy's 87 MW Oradea solar project, fully connected to the grid since August 2025, has secured €40.5 million in financing from UniCredit Bank to refinance initial construction loans. The company is now advancing plans to add a 68 MW BESS at the site, a move that aligns with Romania's push for hybridization. The BESS is projected to generate €8.4 million in annual revenues and €6.7 million in EBITDA over the first five years of operation, underscoring the project's financial viability.

The project's success is also tied to Econergy's partnership with Phoenix Holdings, which has invested over €225 million in the company's Romanian and Polish projects. This collaboration highlights the confidence of long-term investors in Romania's renewable energy trajectory.

Market Confidence and Broader Trends

Econergy's strategy mirrors broader trends in Romania's energy storage market. The country aims to add 4 GW of storage capacity by 2030, with the government planning to allocate 5 GW of solar PV capacity through auctions in the coming years. Hybrid projects are particularly favored, as they address intermittency and support grid resilience. For instance, RGREEN INVEST's 230 MW solar + storage project in Giurgiu, set to begin construction by late 2024, reflects similar investor enthusiasm.

Moreover, Romania's National Energy and Climate Plan (NECP) targets 38.3% renewable energy in gross final consumption by 2030. The Green Corridor interconnection project, a €10 billion initiative involving Romania and neighboring countries, further underscores the nation's commitment to integrating renewables into a regional energy network.

Challenges and Mitigating Factors

Despite progress, challenges persist. Grid limitations and complex permitting processes remain hurdles for developers. However, international financial institutions like the EBRD and domestic banks such as Vista Bank are providing critical support. For example, Vista Bank's €25 million loan for Econergy's Scurtu Mare project includes favorable terms, with a 30-year maturity and a grace period until 2026, easing near-term cash flow pressures.

Strategic Implications for Investors

Econergy's Oradea project exemplifies how hybrid solar + storage ventures can capitalize on Romania's policy-driven growth. The alignment with Law 255/2024, competitive financing terms, and strong ROI projections position the project as a model for replicable investments. For European investors, Romania's combination of regulatory clarity, untapped solar potential, and a supportive financial ecosystem makes it an attractive destination for capital.

As the continent transitions to net-zero, hybrid projects like Oradea will play a dual role: generating revenue through energy sales and providing grid services that enhance system stability. With Romania's renewable energy targets and storage mandates creating a predictable regulatory environment, the stage is set for sustained investment in this high-growth market.