EBRD commits €70 million to Hungary’s hybrid renewable complex as merchant model gains traction

Hungary’s renewable pipeline is moving forward with a major boost from the European Bank for Reconstruction and Development, which has agreed to finance a hybrid clean-energy complex designed to sell electricity on the open market. The deal matters for investors because it ties public-sector backing to a merchant-style revenue approach—an increasingly important test of how bankable large-scale renewables can be without subsidies or long-term corporate power purchase agreements.

€70 million EBRD support within a wider €210 million package

The EBRD will provide €70 million in financing to Renalfa IPP, a company jointly owned by Renalfa Solarpro Group and Rgreen Invest. The commitment forms part of a broader €210 million financing package arranged together with commercial lenders, aimed at developing a large hybrid energy complex in northeastern Hungary.

Scale and configuration: solar plus integrated capacity and storage

The project combines a 450 MW component with integrated 250 MW capacity and 1 GWh of battery storage. When completed, it is expected to rank among Hungary’s largest clean energy installations, generating approximately 448 GWh of electricity annually.

The development is also described as one of the first project-financed hybrid renewable systems of its kind in Central and Eastern Europe, positioning it as an early reference point for how similar assets may be structured across the region.

Market-based revenues and grid flexibility services

A central feature is its market-based revenue model. Rather than relying on subsidies or long-term corporate power purchase agreements, the electricity produced will be sold directly on the open market. The structure reflects growing investor confidence in merchant renewable assets and the long-term competitiveness of clean energy technologies.

The integrated battery storage system is intended to add grid flexibility services—supporting balancing efforts against fluctuations in renewable output and improving overall system stability. By pairing solar generation with storage, the project aims to deliver more consistent and reliable green electricity once operational.

EBRD returns to Hungary’s energy sector after more than a decade

For the EBRD, the financing represents a return to Hungary’s energy sector, marking its first major energy investment in the country in over a decade. More broadly, the institution has committed more than €3.7 billion across over 200 projects in Hungary spanning multiple sectors of the economy.