Taaleri Energia’s SolarWind 2 fund has, with Encro, acquired a 111MW wind project in Croatia.
Encro is the original developer of the wind project, located in the county of Zadar, around 300 km south-west of the capital city Zagreb.
The wind farm will feature 25 Nordex wind turbines, which will be serviced by the manufacturer for 30 years.
Construction works on the Zadar wind farm commenced in the second quarter of 2021 and the wind farm is expected to be fully operational in the fourth quarter of 2023.
The wind farm is planning to enter into a long-term power purchase agreement for a substantial proportion of the electricity generated.
Project financing for this investment has been provided by the European Bank for Reconstruction and Development (EBRD), which is providing a €43m loan.
The EBRD financing will be complemented by parallel loans from Zagrebacka Banka and the Croatian Bank for Reconstruction and Development for a total debt financing package of €126m.
The loan is to Kunovac, a limited liability company jointly owned by Taaleri Energia’s SolarWind 2 Funds and Encro Kunovac.
The wind farm is the first utility-scale renewable energy project in Croatia developed outside of a renewables subsidy scheme.
The financing “showcases a novel financing structure” in the country, combining a corporate power purchase agreement and merchant-based financing structure.
EBRD Director, Head of Energy for Europe Grzegorz Zielinski, said: “The EBRD has always been at the forefront of supporting innovative and bold investments and we are pleased to support this project, which is among the first outside a subsidy scheme and is introducing new ways of structuring and financing renewable projects, not only in Croatia but also in other countries where the Bank operates.”
Kai Rintala, Managing Director of Taaleri Energia, said: “This investment is being realised thanks to the close collaboration and efforts of a number of our key partners, including the EBRD. We look forward to building upon this first investment in Croatia in the coming months and years.”