The European Bank for Reconstruction and Development (EBRD) is investing up to €16.8 million in IE-Energy Projekt, a newly established joint-stock company developing a battery energy storage system (BESS) and virtual power plant (VPP) in Šibenik, Croatia.
The investment was approved under the EBRD Direct Finance Framework non-SME, with confirmation issued this week. Alongside the EBRD’s contribution, Raiffeisen Mandatory and Voluntary Pension Funds, one of Croatia’s largest institutional investors, will provide an equivalent €16.8 million equity investment. The project will also benefit from a €16.5 million capital expenditure grant from the EU Modernisation Fund.
The funding will support the construction of up to 60 megawatts of grid-connected battery storage capacity and the launch of a VPP platform capable of real-time energy balancing. This infrastructure will allow Croatia’s power grid to integrate a higher share of renewable sources such as solar and wind, helping reduce dependence on fossil fuels.
EBRD Director for Central Europe Miljan Ždrale said the initiative represents a “milestone in Croatia’s green transition.” He added: “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 project underscores the EBRD’s broader commitment to supporting innovation in renewable energy and smart grid technologies across its regions. By investing in Croatia’s first large-scale battery storage facility, the Bank aims to enhance energy security, flexibility, and sustainability at a crucial stage of the country’s decarbonisation efforts.
To date, the EBRD has invested over €5 billion across 273 projects in Croatia, focusing on economic reform, energy transition, and public-sector transformation.
