The European Bank for Reconstruction and Development (EBRD) invests 80 million Polish zloties (17 million euros) in green bonds in Poland supporting the roll-out of solar PV projects in the country.
The bonds are issued by R.Power, a vertically integrated solar PV developer and independent power producer incorporated in Poland. It will be the EBRD’s first bond investment into a renewable developer at holding company level in Poland, supplementing traditional project financing at the asset level.
The transaction supports a faster roll-out of solar PV projects in Poland, as well as the company’s ambitions to become a fully integrated regional player in the renewables market and the development of local capital markets, says EBRD
The funding will ensure that an additional 96 megawatts (MW) of solar PV achieves financial close and starts implementation in 2022. This translates into 100 Gigawatt hour (GWh) of electricity annually, contributing to 72 thousand tonnes of carbon dioxide savings a year.
R.Power announced recently that it is seeking a primary equity capital raise to fund its future growth plans across Poland, Italy, Romania, Portugal, Spain and Germany. The company has a current development portfolio of roughly 7GW of solar PV assets and has a de-risked solar PV portfolio of around 800MW.
The EBRD support comes at a time when raising capital is increasingly difficult and the need to accelerate the development of renewable energy is greater than ever, due to the war in Ukraine and global energy security concerns.
The drive towards net zero carbon emissions by 2050 is a dominant theme in the European energy sector. Decarbonisation goals imply increasing electrification of economies and industry, which require massive investment in renewables in the coming decade.
In the past year, energy prices have increased dramatically, driven both by short supply of hydrocarbons and increased electricity demand and, since February, by the war on Ukraine. The focus is turning to renewables not only to achieve the net zero target but to provide an immediate solution to the growing energy security crisis and solar energy will play a critical role in this transition.