Croatia's Encro bags loans for 30 MW of solar projects at home

Croatian renewables developer Encro Group has secured loans from two banks to finance the construction of 30 MW of solar farms in Croatia, the lenders announced on Friday.

The European Bank for Reconstruction and Development (EBRD) said that it has lent EUR 10.6 million (USD 11.6m) under the InvestEU programme to three special purpose vehicles of the Encro Group to support the projects. Croatian lender Privredna banka Zagreb d.d. agreed to provide the same amount, the bank’s management board member Vedrana Jelusic Kasic said in her LinkedIn post.

The loans will enable Encro to build three 10-MW subsidy-free solar farms -- Gradic, Pelegrin and Donji Humac. Two of them will be located on the island of Brac, helping to reduce the island's energy dependence on the mainland.

Encro will sell the plants’ output on the market, but it may also enter into corporate power purchase agreements (PPAs) at any time.

To address the elevated risks associated with innovative financing structures, the EBRD highlights that the InvestEU programme will provide a first-loss guarantee, ensuring a degree of risk mitigation for the projects.

(EUR 1.0 = USD 1.091)

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