EBRD invests in Croatia’s BESS and virtual power plant

The European Bank for Reconstruction and Development (EBRD) is providing a direct equity investment of up to 16.8 million euros in IE‑Energy Projekt, a newly established joint‑stock company developing a greenfield battery energy storage system (BESS) and virtual power plant (VPP) in Šibenik, Croatia.

EBRD’s investment is approved under the EBRD Direct Finance Framework non-SME. The project also envisages an equivalent equity investment of €16.8 million by Raiffeisen Mandatory and Voluntary Pension Funds, a large Croatian Institutional Investor, as well as 16.5 million euros capex grant from the EU Modernisation Fund, EBRD said.

The development will support the installation of up to 60 megawatts of grid-connected battery storage capacity and the deployment of a VPP platform, allowing real-time balancing of electricity supply and demand. This will significantly enhance the flexibility of Croatia’s power grid and enable the integration of a greater share of intermittent renewable energy sources such as solar and wind.

“This investment marks a milestone in Croatia’s green transition,” Miljan Ždrale, EBRD Director for Central Europe, said: “It supports the deployment of next-generation energy infrastructure and strengthens the resilience of the national grid, opening the door for more clean energy sources.”

The EBRD has invested a total of more than 5 billion euros in 273 projects across Croatia. The Bank’s focus is on supporting efforts to accelerate the reform process, leveraging the benefits of European Union accession to advance transition, and restructuring and commercialising public-sector enterprises, it said.