EBRD Lends €29 Million For Albania’s 140MW Solar Project

The European Bank for Reconstruction and Development (EBRD) has said that its lending €29 million to an Albanian special-purpose vehicle, owned by France’s Voltalia, to develop the 140 MW Karavasta solar plant. This solar power plant will come up in the Fier area of south-western Albania.

The EBRD is anchoring the €99 million financing structure required to implement the solar project. It is mobilising significant commercial debt participation.

EBRD also said that the solar farm’s total cost of €135 million is co-financed by the International Finance Corporation (IFC), Intesa Sanpaolo Bank Albania, Privredna Banka Zagreb and by Voltalia itself.

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This project, the first large utility-scale solar photovoltaic plant, is a result of the country’s first competitive auction for solar power following the introduction of the EBRD Renewable Energy Auctions Programme in Albania.

The project is expected to act as a model for others in the Western Balkans region. EBRD Director, Grzegorz Zielinski said, “Nationally, the project will significantly increase the share of Albania’s solar power generation, helping further to reduce the effects of climate change.”

Matteo Colangeli, EBRD Director for the Western Balkans, mentioned, “This is an excellent example of impactful and business-enabling policy engagement combined with skilful project finance structuring that leads to concrete results for the country.”

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Constantin von Alvensleben, Voltalia’s Country Manager for Albania, said, “It is therefore a great moment for all stakeholders, including other lenders – IFC and Intesa Sanpaolo – as well as the government of Albania as the contractual partner of the project agreements.”

EBRD’s Expansive Role

Since the Karavasta auction, the EBRD claims to have helped the Albanian authorities with a solar PV auction at Spitalla and it is currently assisting with a 150 MW onshore wind auction also. The EBRD is also supporting an upcoming 300 MW solar PV auction expected in June – the largest solar auction in the region. Its also helping the authorities to deliver the first offshore wind capacity in Albania.

The EBRD says that its the largest financier and enabler of renewable energy in the Western Balkans and its currently working on introducing renewable auctions in Serbia, Kosovo and Montenegro.