Voltalia, a renewable energy project developer, secured €29 million (~$32 million) in debt financing for the construction of a 140 MW of solar project in Albania from the European Bank for Reconstruction and Development (EBRD).
The EBRD is anchoring the €99 million (~$109.30 million) financing structure required to implement the project and is mobilizing significant and innovative commercial debt participation. The project’s total cost of €135 million (~$149 million) is co-financed by the International Finance Corporation (IFC), Intesa Sanpaolo Bank Albania, Privredna Banka Zagreb, and Voltalia’s resources.
EBRD Director, Head of Energy for Europe, Grzegorz Zielinski, said: “We are proud to see this project reach financial close. It will contribute meaningfully to the diversification of local generation sources, which to date have been mostly hydro. Nationally, the project will significantly increase the share of Albania’s solar power generation, helping further to reduce the effects of climate change. ”
“The Karavasta Solar Project is a milestone for the transition towards a diversified renewable energy mix in Albania. Today’s signing is proof of the quality and sustainability of the project,”. Voltalia has benefitted from a long-standing relationship and full alignment with the EBRD on all important aspects of the project. 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”, said Constantin von Alvensleben, Voltalia’s Country Manager for Albania.
The Karavasta photovoltaic (PV) park is being built in the Fier area of southwestern Albania and is set to become the country’s first large utility-scale solar complex. Construction was initiated in July 2022 and is expected to be completed in the second half of 2023.
According to Mercom’s Q1 2023 Solar Funding and M&A report, large-scale project funding came to $5.3 billion in 62 deals, a decrease of 46% compared to $9.8 billion in 52 deals in Q4 2022.