Southeast Europe is developing both merchant and state-backed battery-storage projects, with financing models depending on market depth and the value storage provides to the power system. Romania’s 127 MW / 254 MWh Scornicesti project represents the merchant approach, while projects in North Macedonia and Montenegro use state-backed or strategic-partner structures. The regional mix is expected to include both models.
The standalone Scornicesti battery is financed on a non-recourse basis through a package provided by the European Bank for Reconstruction and Development (EBRD) and supported by InvestEU. Its bankability depends on optimisation, market access and risk allocation, rather than a long-term fixed-price power contract. Merchant projects can offer higher upside and faster private-sector replication, but their ability to take on debt depends on downside protection.
State-backed and hybrid structures
In North Macedonia, the state-backed Bitola battery is planned at 100 MW / 400 MWh, with an estimated cost of EUR 98 million. Its financing structure is based on sovereign guarantees and concessional finance. Participation from the EBRD, KfW, climate finance and the Western Balkans Investment Framework (WBIF) is envisaged.
The case for Bitola includes system value from balancing, reducing curtailment and improving reliability. These benefits are relevant to projects where the value provided to the grid exceeds revenue that can readily be monetised in energy markets. Contracted or state-backed batteries can support longer financing tenors and a lower cost of capital, although they may dilute market incentives.
Montenegro is pursuing a hybrid strategic-partner approach to storage. Its latest framework envisages a 60 MW / 240 MWh first-phase reference battery alongside a broader partnership structure. A strategic investor could take on some technology and implementation risk while the utility remains involved.
Merchant batteries are expected where liquidity and balancing markets are sufficiently deep. Infrastructure-style projects are expected where grid value exceeds easily monetised market revenue. The suitable financing model therefore depends on market depth and the value a battery provides to the power system.