Photon locks EBRD funding for VPP biz, new solar in Romania

Amsterdam-based renewables developer Photon Energy NV (WSE:PEN) has obtained EUR 15 million (USD 16.2m) in debt financing to back its growth in Romania and bankroll the construction of 29 MWp of solar projects in the Balkan country.

The senior secured loan will be extended by the European Bank for Reconstruction and Development (EBRD), Photon said on Tuesday. The multi-tranche debt with a term of seven years was enabled by a guarantee from the European Union (EU) under its InvestEU Programme.

The fresh proceeds will finance the construction of six photovoltaic (PV) parks in Romania, where Photon Energy has an additional 210 MWp of utility-scale projects at various development stages.

A portion of the debt financing will be allocated to support the Dutch group’s expansion of demand response services and participation in capacity market auctions, as well as for research and development (R&D) expenditures of its virtual power plant (VPP) services unit Lerta SA.

“The signing of this financing agreement confirms that our integrated business model based on the ability to develop, engineer, construct, finance and operate PV installations, as well as monetise the generated electricity, has been successfully deployed in the Romanian market,” said Georg Hotar, CEO of Photon Energy Group.

(EUR 1.0 = USD 1.079)

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