ŠIBENIK, Oct. 22, 2025 — In a landmark move for Croatia’s energy sector, the European Bank for Reconstruction and Development (EBRD) has announced a €16.8 million equity investment in the country’s first grid-scale battery energy storage system (BESS) and virtual power plant (VPP). The project, developed by IE‑Energy Projekt, will deliver up to 60 megawatts of flexible capacity, enhancing grid stability and enabling greater integration of renewable energy.
Strategic Investment and Partnerships
The EBRD’s investment, its first equity stake in a standalone merchant BESS, is part of a broader financing package that includes:
- €16.8 million from Raiffeisen Mandatory and Voluntary Pension Funds, a major Croatian institutional investor
- €16.5 million in capital expenditure grants from the EU Modernisation Fund
Approved under the EBRD Direct Finance Framework, the initiative reflects a coordinated effort to modernize Croatia’s energy infrastructure and reduce reliance on fossil fuels.
Enhancing Grid Flexibility and Renewable Integration
The BESS and VPP platform will enable real-time balancing of electricity supply and demand, a critical capability as Croatia expands its use of intermittent renewable sources like solar and wind. The system will also support energy independence, reduce carbon emissions, and improve the resilience of the national grid.
Miljan Ždrale, EBRD Director for Central Europe, stated:
“This investment marks a milestone in Croatia’s green transition. 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.”
Broader Impact and EBRD Commitment
The project underscores the EBRD’s commitment to innovation in renewable energy and smart grid technologies. To date, the Bank has invested over €5 billion in 273 projects across Croatia, focusing on public-sector reform, EU integration, and commercialisation of state enterprises.
The Šibenik-based development is expected to serve as a model for future energy projects in the region, aligning with EU climate goals and Croatia’s national energy strategy.
Summary: Croatia’s first grid-scale battery storage and virtual power plant, backed by the EBRD and EU funds, will deliver 60 MW of flexible capacity, boost renewable integration, and support the country’s transition to a low-carbon energy system.
Sources: EBRD European Bank for Reconstruction and Development (EBRD); Renewables Now Renewables Now; SeeNews SeeNews.
