In order to support Bulgaria’s transition to a more sustainable and diversified energy mix, the International Finance Corporation (IFC) is financing a 225-megawatt (MW) direct current solar photovoltaic (PV) project developed by Rezolv Energy, an independent renewable energy producer in Central and Eastern Europe.
This initiative will stand as one of the largest renewable PV energy projects in Bulgaria to date, playing a crucial role in helping the country meet its ambitious net-zero greenhouse gas (GHG) emissions target by 2050.
Located near Silistra in northeast Bulgaria, the project encompasses the solar PV plant’s development, construction, and operation and two overhead transmission lines totalling 6 kilometres.
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The project will be funded through a combination of equity and debt. The IFC is investing €43 million—comprising up to €30 million from its own account and up to €13 million from IFC’s Managed Co-Lending Portfolio Program—as part of a total debt package of up to €90 million, with Raiffeisen Bank International providing the remaining funding.
“This is a second landmark financing signed by Rezolv Energy within a very short timeframe, and our first transaction in Bulgaria,” said Jan Viton, Financing and M&A Director at Rezolv Energy.
He added, “It has been a fantastically busy year for Rezolv and we are thrilled that this financing unlocks another sizeable regional renewables project. Such an intense execution would not be possible without the tremendous support of our key relationship banks.”
Once operational, the solar plant is projected to generate around 313 gigawatt-hours of electricity annually. The project will function on a “merchant” basis, selling electricity through a mix of the wholesale market via the Independent Bulgarian Energy Exchange and power purchase agreements with businesses.
By aligning with Bulgaria’s climate finance objectives under the Paris Agreement, the initiative is poised to impact the country’s mitigation targets significantly.
Bulgaria faces considerable challenges in its energy transition. It is currently the most emissions-intensive country in Europe, with GHG emissions nearly double the European Union average.
As of December 2023, fossil fuels, primarily coal, accounted for 41% of electricity generation, while non-hydro renewable energy sources represented only 14%.
Bulgaria aims to meet its net-zero GHG emissions commitment by 2050 by phasing out coal-fired power plants by 2038 and adding approximately 3,000 MW of additional renewable energy capacity by 2030.
Achieving this goal will require an estimated €43.7 billion in investments, predominantly from the private sector.