International financial institutions, EBRD, EIB, and SEB, extend €84.8 million in loans to finance solar power projects in Latvia
Sunly Secures €300 Million for Renewable Energy Expansion
Tallinn-based Sunly has secured a significant €300 million debt financing package to support its renewable energy projects in the Baltics and Poland. This funding, backed by major institutional supporters such as the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD), forms part of Sunly’s broader efforts to expand its renewable energy capacity significantly by 2028.
Institutional Supporters and Financing
The EIB and EBRD are the principal financiers for this project, with their financing backed by the EU’s InvestEU programme guarantee. This initiative promotes climate action and economic and social cohesion. The Estonian bank SEB also supports financing and hedging for Sunly projects, particularly in Latvia.
Project Locations
The financing partly covers the development of four solar parks in Latvia, with a total project cost estimated around €204 million. Sunly itself contributes about €119 million to these projects, while the remainder is covered by the EIB and EBRD loans. Sunly has already built over 300 MW of renewable capacity across Estonia, Latvia, and Poland and aims to add an additional 700 MW in the near term.
Financial Context
Sunly’s total available funding across its various renewable initiatives is close to USD 1 billion, including these recent loans. The €85 million loan specifically referenced in multiple sources is part of the overall €300 million package for renewables covering the Baltics and Poland.
Purpose and Impact
The financing enables construction of subsidy-free, non-recourse solar parks designed to compete effectively in the energy market. This supports the Baltic countries' and the EU’s climate goals, including reducing dependency on fossil fuels, boosting energy independence, and furthering the EU Green Deal.
In summary, Sunly’s recent €300 million debt financing, supported mainly by the EIB, EBRD, and regional banks like SEB, targets development of multiple renewable projects, including four solar parks in Latvia and capacity expansions in Estonia and Poland. This funding is crucial for Sunly’s ambitious expansion and helps advance regional energy transition objectives.
Additionally, Sunly has also raised funding from Rivage Investment, Copenhagen Infrastructure Partners, and Norway's largest pension company Kommunal Landspensjonskasse for constructing renewable energy projects across the Baltics and Poland. Stockholm-based SEB has been a financial partner for Sunly since 2019. It's worth noting that Renalfa IPP, another independent power producer, has projects located in countries such as Bulgaria, Hungary, Romania, and North Macedonia. The EBRD led a €315m financing for Renalfa IPP, an independent power producer that develops renewable energy projects across the region. The loans will fund the development of four solar parks with a total capacity of 329 megawatts. The EBRD, EIB, and commercial bank SEB have agreed an €84.8m loan package for Sunly, a Baltic region renewable energy developer, to help Sunly expand solar power capacity in Latvia.
- The European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD), alongside regional banks like SEB, have provided a significant €300 million debt financing package for Sunly's renewable energy projects.
- The funding, backed by major institutional supporters and the EU’s InvestEU programme guarantee, is aimed at expanding Sunly’s renewable energy capacity significantly by 2028.
- One part of this financing, €204 million, partially covers the development of four solar parks in Latvia, contributing to the European Union’s climate goals, such as reducing dependency on fossil fuels, boosting energy independence, and advancing the EU Green Deal.
- This financial inclusion in renewable energy development is expected to have a positive impact on the business sector and the community as a whole, as it supports the transition to cleaner and more sustainable energy sources.
