The European Bank for Reconstruction and Development said on Tuesday it was extending a €43 million loan to Kunovac, a limited liability company jointly owned by Taaleri Energia’s SolarWind II Funds and ENCRO Kunovac, for the construction of two wind farms in the Zadar area.

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 €126 million.

The joint total grid capacity of the two wind farms will be 111MW, enough to power 85,000 households.

This is the EBRD’s first wind-farm investment in Croatia which will allow the country to make progress towards its 2030 environmental targets and COP26 commitments, which envisage an increase in the share of electricity generation from wind and solar from 14% in 2020 to 27% in 2030 and 45% by 2050.

The EBRD has already supported two Taaleri Energia fund investments in wind farms in Poland and Serbia.

Taaleri Energia, part of Helsinki-listed Taaleri Group, is a renewable energy developer and fund manager. The Taaleri SolarWind II fund is its fifth and most recent private equity fund focusing on renewables.

The EBRD has invested more than €4 billion in Croatia to date. Its focus there is on supporting private-sector competitiveness, developing capital markets and promoting the commercialisation of public companies.