EBRD Lends EUR 43 Million to Taaleri-ENCRO JV for Two Wind Farms in Croatia

EBRD Lends EUR 43 Million to Taaleri-ENCRO JV for Two Wind Farms in Croatia

September 2022

The European Bank for Reconstruction and Development (EBRD) is helping to speed up Croatia’s transition to clean energy by helping to finance the construction of two new wind farms.

The bank is extending a EUR 43 million loan to Kunovac d.o.o., a limited liability company jointly owned by Taaleri Energia’s SolarWind II Funds and ENCRO Kunovac d.o.o., for the first utility-scale renewable project in Croatia developed outside of a renewables subsidy scheme.

The EBRD proceeds will finance the construction and operation of two onshore windfarms in the Zadar region, with a joint total grid capacity of 111MW, enough to power 85,000 households. They will also help to avoid more than 78,000 tonnes of CO2 emissions annually and are expected to increase the country’s current electricity generation from renewable sources (excluding large hydro) by around 10 per cent. The EBRD financing will be complemented by parallel loans from Zagrebacka Banka d,d. and the Croatian Bank for Reconstruction and Development for a total debt financing package of EUR 126 million.

This is the EBRD’s first wind-farm investment in Croatia. Moreover, it showcases a novel financing structure in the country, combining a corporate power purchase agreement and merchant-based financing structure.

September 2022

The European Bank for Reconstruction and Development (EBRD) is helping to speed up Croatia’s transition to clean energy by helping to finance the construction of two new wind farms.

The bank is extending a EUR 43 million loan to Kunovac d.o.o., a limited liability company jointly owned by Taaleri Energia’s SolarWind II Funds and ENCRO Kunovac d.o.o., for the first utility-scale renewable project in Croatia developed outside of a renewables subsidy scheme.

The EBRD proceeds will finance the construction and operation of two onshore windfarms in the Zadar region, with a joint total grid capacity of 111MW, enough to power 85,000 households. They will also help to avoid more than 78,000 tonnes of CO2 emissions annually and are expected to increase the country’s current electricity generation from renewable sources (excluding large hydro) by around 10 per cent. The EBRD financing will be complemented by parallel loans from Zagrebacka Banka d,d. and the Croatian Bank for Reconstruction and Development for a total debt financing package of EUR 126 million.

This is the EBRD’s first wind-farm investment in Croatia. Moreover, it showcases a novel financing structure in the country, combining a corporate power purchase agreement and merchant-based financing structure.