Renewable Energy Financing in Volatile Markets

Renewable energy financing in South-East Europe is entering a new phase. Access to capital is no longer the primary challenge. Instead, investors, developers and lenders are increasingly focused on how projects are structured, de-risked and commercialised in a market defined by volatility and uncertainty.

This shift was explored during Energy Week Black Sea 2026, where legal, financial and institutional stakeholders discussed how financing models are adapting to changing market realities.

Capital remains available, but expectations have changed

According to Loredana Vlăsceanu, Partner at Vlăsceanu & Partners, the financing landscape has become significantly more diversified.

Alongside traditional bank lending, developers now have access to:

• private equity funds
• international financial institutions
• EPC-led financing structures
• alternative investment vehicles

These sources are increasingly supporting early-stage and non-bankable projects, broadening the scope of renewable energy financing across the region.

Revenue certainty is becoming essential

One of the strongest messages from the discussion was the growing importance of predictable revenues.

Long-term merchant financing has largely disappeared, replaced by financing structures that rely on:

• Power Purchase Agreements (PPAs)
• Contracts for Difference (CfDs)
• corporate guarantees

However, not all revenue structures are equally effective.

Poorly designed PPAs can weaken project bankability through unfavourable termination clauses, imbalance allocation mechanisms or counterparty credit risks. As a result, lenders are applying increasingly detailed scrutiny when assessing renewable energy financing opportunities.

Market discipline is reshaping project selection

Favieli Stelian, Managing Partner at Nofar Energy Romania, highlighted that financing remains available for experienced developers with credible pipelines.

Nofar Energy Romania has secured approximately €400 million in financing from institutions including the European Bank for Reconstruction and Development (EBRD) and commercial banks.

However, announced pipelines should not be confused with projects that are genuinely ready for construction.

As seen previously in the solar sector, storage projects are expected to undergo a similar filtering process, with capital increasingly directed toward the strongest opportunities.

This reflects a broader trend in renewable energy financing: quality is becoming more important than volume.

Regulatory stability remains a critical factor

Market participants agreed that regulatory uncertainty is one of the most difficult risks to manage.

Laurențiu Urluescu, President of the Romanian Energy Suppliers Association, noted that while price and volume risks can be hedged, regulatory changes directly impact investor confidence, liquidity and contract structures.

For investors evaluating renewable energy financing, regulatory predictability is becoming just as important as resource quality or project economics.

Institutional investors maintain long-term commitment

Despite market volatility, institutional support for the energy transition remains strong.

Cristina Span, Loan Officer at the European Investment Bank (EIB), confirmed that energy security and decarbonisation continue to be strategic priorities.

The EIB Group deployed more than €30 billion in 2025, including over €11 billion for grids and nearly €10 billion for renewable energy projects.

These commitments demonstrate continued confidence in the long-term outlook for renewable energy financing.

Flexibility is becoming the new financing standard

From the perspective of the International Finance Corporation (IFC), financing structures are becoming increasingly tailored to project-specific circumstances.

Delphine Anne Marchi, Senior Investment Officer at IFC, explained that projects now combine different revenue mechanisms, including PPAs, CfDs, merchant exposure and hybrid portfolios.

IFC is also supporting:

• early-stage project structuring
• portfolio financing
• standalone battery storage projects
• ancillary service business models

This evolution reflects a more sophisticated approach to renewable energy financing, where flexibility is often a prerequisite for investment.

Financing is becoming a question of risk management

The panel concluded with a consistent message.

Capital is available, but it is increasingly selective and disciplined. Projects that combine realistic revenue assumptions, strong counterparties, flexible financing structures and credible execution strategies continue to attract investor interest.

As highlighted during Energy Week Black Sea 2026, the future of renewable energy financing will depend less on the amount of capital available and more on how effectively risk is understood, allocated and managed.