EBRD backs Hungary's biggest solar-battery project in its first energy deal since 2010

The European Bank for Reconstruction and Development (EBRD) is financing a landmark hybrid renewable energy project in Hungary, providing a €70 million loan as part of a broader €210 million financing package for independent power producer Renalfa IPP, according to an EBRD announcement. The project will develop a 450 MW solar photovoltaic portfolio paired with 250 MW/1 GWh battery energy storage systems in northeastern Hungary — one of the largest renewable energy developments the country has seen. Once operational later this year, it will deliver around 448 GWh of renewable electricity annually, directly supporting Hungary’s target of sourcing 30% of its gross final energy consumption from renewables by 2030.

What makes this project particularly significant is that all electricity produced will be sold on the Hungarian market without any government support scheme or corporate power purchase agreement — a strong signal that private renewable energy investment can stand on its own commercial merits. By pairing large-scale solar generation with utility-scale battery storage, the project will also tackle one of renewable energy’s most persistent challenges: intermittency. The battery systems will improve grid flexibility and help stabilize a market facing increasing energy price volatility. EBRD Director Grzegorz Zielinski said the project “will play a key role in strengthening Hungary’s energy system” and sets “an important precedent for the wider Central and Eastern Europe region.”

The deal also marks the EBRD’s return to Hungary’s energy sector after a 15-year absence. EBRD Regional Head Anca Ionescu called it “an important milestone,” saying it underlines the Bank’s renewed commitment to Hungary’s green transition. Renalfa IPP — a joint venture between Renalfa Solarpro Group and French infrastructure fund manager RGREEN INVEST — described the project as enabling the delivery of green baseload products and grid flexibility services to the Hungarian electricity market. The EBRD has invested more than €3.7 billion across 220 projects in Hungary since beginning operations there.