Israeli renewables company Nofar Energy has secured €110 million of financing to build and operate two solar power plants in southeastern Romania.

The funds come from the EBRD and Vienna-based Raiffeisen Bank International. EBRD is providing a loan of €55 million, matched by Raiffeisen Bank across two tranches of €25 million and €30 million.

The Iepuresti and Ghimpati solar projects will have a total capacity of around 300 MW. Together, they are expected to generate 386 GWh of renewable electricity per year. The electricity will be sold on the local market.

“The successful completion of these projects will play a crucial role in supporting Romania's ambitious goal for decarbonisation, contributing to a greener future for the region,” said Nofar Energy Romania CEO Favi Stelian.

The EBRD has invested almost €11 billion in 524 projects across Romania. A statement on its website says that the latest investment underscores growing confidence in Romania’s renewables market in the wake of key regulatory changes.

Romania’s Ministry of Energy recently approved a new contracts-for-difference mechanism. The first renewables auction under the scheme, which aims to procure 500 MW of solar, is scheduled for later this year.

The Romanian Energy Regulatory Authority recently made changes to grid-connection processes, while the country's parliament passed a bill requiring prosumers with PV systems between 10.8 kW and 400 kW to install energy storage systems.

Romania has pledged to boost its renewable energy share to 36.2% of total consumption by 2030 by adding 11.9 GW of new capacity. The EBRD's latest investment comes after a €12.5 million loan to fund the construction of two 60 MW solar plants in Tunisia.