Croatia first grid-scale battery storage and virtual power plant

• EBRD invests €16.8m in Croatia’s first large-scale battery storage and virtual power plant – its first equity stake in standalone merchant Battery Energy Storage System (BESS) 
• Project will have up to 60 megawatts of flexible capacity, enhancing grid stability and enabling greater renewable energy integration
• Innovative infrastructure will also strengthen energy resilience and support Croatia’s green transition

The European Bank for Reconstruction and Development (EBRD) is providing a direct equity investment of up to €16.8 million 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 capex grant from the EU Modernisation Fund.

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.

By backing this innovative infrastructure, the EBRD is supporting Croatia’s path to decarbonisation and energy independence. The project will contribute to the country’s energy transition goals, reduce its reliance on fossil fuels and help to stabilise the electricity system at a time of rising renewable penetration.

Miljan Ždrale, EBRD Director for Central Europe, said: “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.”

The financing underscores the EBRD’s commitment to fostering innovation in renewable energy and smart grid technologies, helping countries such as Croatia accelerate their transition away from fossil fuels and towards more efficient and reliable power systems.

The EBRD has invested a total of more than €5 billion 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.