The European Bank for Reconstruction and Development (EBRD) has taken another significant step in accelerating Central and Southeast Europe’s energy transition by approving up to €44 million in project financing for one of Romania’s first utility-scale standalone battery energy storage systems (BESS). More than a single infrastructure investment, the transaction demonstrates how battery storage is rapidly becoming a bankable asset class capable of attracting institutional capital across emerging European electricity markets.
Located in Scornicești, the project will deliver 127 MW of installed power and 254 MWh of storage capacity. It is jointly developed by R.Power, one of Central Europe’s fastest-growing independent renewable power producers, and Eiffel Investment Group through its infrastructure investment platform focused on the energy transition. Once operational, the battery will rank among Romania’s largest standalone storage facilities and is designed specifically to provide grid flexibility rather than being paired with a single renewable-generation asset.
The financing structure is equally notable. The EBRD is providing the funding on a non-recourse project-finance basis, meaning repayment will depend primarily on the project’s own revenues rather than the sponsors’ balance sheets. Of the total package, €29 million benefits from an InvestEU first-loss guarantee, reducing financing risk and demonstrating how European financial institutions are increasingly sharing early-stage commercial risks to unlock private investment in emerging energy technologies.
Romania has become one of Europe’s fastest-growing renewable electricity markets. Large volumes of new solar and wind generation are entering the system, while transmission infrastructure and system flexibility are struggling to keep pace. This has increased renewable-curtailment risks during periods of excess generation and heightened balancing costs when renewable output is low. Battery storage directly addresses these challenges by absorbing surplus electricity during low-price periods and releasing it when demand and prices rise.
Unlike many earlier storage projects supported primarily by regulated revenues, the Scornicești facility is expected to operate largely under a merchant business model. Revenue will be generated through participation in Romania’s developing ancillary-services and balancing markets under an optimisation agreement with regional electricity trader GEN-I. This reflects growing investor confidence that storage assets can generate attractive returns through market participation rather than relying exclusively on capacity payments or long-term regulated contracts.
For institutional investors, lenders and infrastructure funds, the project establishes several important precedents. It validates standalone battery storage as a financeable infrastructure asset in Romania, demonstrates that merchant-revenue structures can support limited-recourse financing and creates a benchmark likely to influence future transactions across Southeast Europe.
The implications extend well beyond Romania. Across Serbia, Bulgaria, Croatia, North Macedonia and Montenegro, renewable-development pipelines continue to expand while grid operators increasingly face congestion, renewable curtailment and balancing challenges. As electricity markets become more volatile, with wider intraday price spreads and more frequent periods of negative pricing, the commercial case for large-scale storage continues to strengthen.
For developers throughout Southeast Europe, the Romanian transaction offers an important financing template. International lenders are signalling a willingness to support battery projects where developers can demonstrate robust market analysis, experienced sponsors, sophisticated optimisation strategies and credible long-term operating assumptions. This could reduce financing uncertainty for future projects across the region and help move storage development from early-stage speculation toward fully financeable infrastructure platforms.
The investment also reflects a broader evolution in European energy finance. During the previous decade, institutional capital focused primarily on financing renewable-generation assets. Increasingly, attention is shifting toward the infrastructure required to integrate those resources into modern electricity systems. Storage, digital grid management, transmission reinforcement and flexibility services are emerging as the next major investment cycle.
As Romania pursues its target of 38.3% renewable energy in final energy consumption by 2030, projects such as Scornicești will play an increasingly strategic role in maintaining grid stability while allowing additional wind and solar capacity to connect without proportionally increasing curtailment risks.
For Southeast Europe, the message from this financing is clear: battery energy storage has moved beyond demonstration projects. It is becoming mainstream infrastructure capable of attracting international project finance, institutional investors and development banks. The Romanian transaction may therefore be remembered less for its 127 MW capacity than for establishing a financing model that could accelerate the next generation of grid-scale storage investments across the region.
