Sofia, Bulgaria, October 16, 2024—To support Bulgaria’s transition to a more sustainable and diversified energy mix, IFC is financing a 225-megawatt (MW) direct current solar photovoltaic (PV) project developed by Rezolv Energy, a leading independent renewable energy producer in Central and Eastern Europe.
This will be one of the largest renewable PV energy projects in Bulgaria to date, significantly aiding the country in achieving its ambitious net-zero greenhouse gas (GHG) emissions target by 2050. The project, located near Silistra in northeast Bulgaria, includes the development, construction, and operation of the solar PV plant, along with two overhead transmission lines totaling 6 kilometers.
The project will be financed through a combination of equity and debt. IFC is investing €43 million—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 debt package totaling up to €90 million, with Raiffeisen Bank International contributing the remaining amount.
“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. “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 expected to generate approximately 313 gigawatt-hours of electricity annually. The project will operate on a “merchant” basis, selling electricity through a combination of the wholesale electricity market via the Independent Bulgarian Energy Exchange and power purchase agreements with businesses. By aligning with Bulgaria’s climate finance goals under the Paris Agreement, the project will make a significant contribution to the country’s mitigation targets.
Bulgaria faces significant energy transition challenges as it is currently the most emissions-intensive country in Europe, with a GHG emissions intensity of GDP almost double the European Union average. As of December 2023, fossil fuels, predominantly coal, still accounted for 41 percent of electricity generation, while non-hydro renewable energy sources represented only 14 percent. To meet its net-zero GHG emissions commitment by 2050, Bulgaria plans to phase out coal-fired power plants by 2038 and add about 3,000 MW of additional renewable energy capacity by 2030, requiring an estimated €43.7 billion in investments, primarily from the private sector.
“IFC strategy in Central and Eastern Europe prioritizes green innovation, industrial decarbonization, and climate financing,” said Ary Naïm, IFC Manager for Central and South Europe. “By partnering with Rezolv Energy, we are fostering the development of a more diversified and sustainable energy sector in Bulgaria, enhancing energy security, and promoting environmental sustainability.”
This investment demonstrates IFC’s continued support for Bulgaria’s energy transition, promoting a sustainable and market-oriented approach to renewable energy development.