South East Europe’s energy transition is not expected to be financed by bank debt alone. The investment requirement is described as too large, with a diverse asset base and a more sophisticated market. Equity capital markets, green bonds, corporate debt, development finance institution (DFI) finance and project-finance structures are cited as needed.
Capital-market depth across the region is uneven. Greece and Romania are described as having the deepest energy capital-market stories. Bulgaria, Croatia and Slovenia have institutional capital but fewer large listed energy champions. The Western Balkans are described as remaining more dependent on DFIs, local banks, strategic investors and state-backed utilities.
Romania’s Hidroelectrica IPO sets a regional reference point
Romania’s Hidroelectrica initial public offering remains the defining Southeast Europe capital-market transaction. The €1.9 billion listing was the largest ever IPO on the Bucharest Stock Exchange. It was also the third-largest in Central and Eastern Europe at the time and the largest European IPO of 2023.
The transaction is presented as evidence that large, cash-generative and strategically important SEE energy assets can attract international institutional capital. Hidroelectrica is described as a mature hydropower producer with scale, strategic relevance and strong profitability. The IPO is characterized as not being a speculative green story.
Hidroelectrica is also described as an exception within the region’s renewable sector. Most renewable platforms in SEE are said to be more likely to exit through trade sales, infrastructure funds, asset rotation or strategic minority stakes than through IPOs. Public equity markets are described as being better suited to large mature champions than to fragmented development pipelines.
Green debt issuance expands alongside corporate refinancing
Corporate bond markets are identified as becoming more relevant, particularly in Greece. In October 2025, PPC priced €775 million of 4.25% Green Senior Notes due 2030. The issuance is presented as showing how large regional utilities can use green debt markets for refinancing liabilities and funding eligible green projects.
The role of corporate-level green financing is linked to how capital can move from corporate transformation to project deployment. The source material states that a large utility does not need to finance every wind, solar or storage asset with separate non-recourse project debt. It also notes that corporate-level green financing can be used if investors accept both the credit story and the green framework.
Banks and DFIs shape deal structures across SEE
Banks are described as another key capital-market channel for renewable finance in the region. Greek banks, Romanian banks and regional groups including Erste, UniCredit, Raiffeisen, Intesa Sanpaolo, OTP and Piraeus are cited as central participants.
Banks are described as supporting more than direct project lending. They are also said to back green bond markets, corporate refinancing and DFI-led syndications. Development finance institutions remain described as a backbone for many transactions through risk reduction and mobilization of commercial banks.
EBRD, EIB and IFC are highlighted for their role in supporting regulatory frameworks such as auctions and contracts for difference (CfDs). An example cited is an EBRD €175 million loan to PPC for around 400 MW of wind and solar projects across Bulgaria, Greece and Romania. The example also references InvestEU support enabling longer-term funding.
The source material also points to EIB activity in the Western Balkans. It states that the EIB Group invested €822 million in the Western Balkans in 2025. It further notes a signed €103 million loan for the 132 MW Poklečani wind farm in Bosnia and Herzegovina.
CfDs, auctions and revenue support influence bankability
The capital stack for bankable SEE renewables is described as typically layered. It includes sponsor equity, commercial bank debt, DFI participation and auction-backed or contracted revenue. EU grant or guarantee support is also mentioned as sometimes part of financing arrangements.
The source material contrasts market maturity levels in terms of contracting structures. In more advanced markets, corporate PPAs and merchant components are said to be becoming more accepted. In less mature markets, lenders are described as still preferring clearer revenue support.
Romania’s CfD scheme is highlighted for turning renewable projects into more financeable assets. EBRD is cited as saying the scheme awarded 4.2 GW of solar and wind capacity across two auctions. This figure is stated to exceed Romania’s national target of 3.5 GW under its Recovery and Resilience Plan.
A focus on structuring helps different capital sources participate
The source material frames the issue for SEE capital markets around project structuring rather than availability of money. It states that investors want visibility while banks seek bankability and bondholders seek credit discipline. DFIs are described as looking for transition impact, while strategic buyers want platforms and governments want capacity with lower consumer risk.
The strongest projects are described as needing to satisfy multiple stakeholder requirements at once. South East Europe’s energy capital markets are characterized as still developing while direction remains consistent across instruments such as green bonds, project finance supported by strong assets, DFI participation crowding in commercial banks, and auctions plus CfDs transforming early markets into bankable ones.
The next stage is described as involving deeper local capital participation along with more green-bond issuance, more storage finance and more hybrid corporate/project structures. The source material concludes that the region does not lack capital but lacks enough de-risked, grid-secured and well-structured assets ready for that capital.