International financial institutions EBRD, EIB, and SEB offer €84.8 million in loans for solar energy initiatives in Latvia
In a significant move towards clean energy, Sunly, a renewable energy developer based in Tallinn, is expanding its solar power capacity in Latvia with the construction of four solar parks. The project, with a total capacity of 329 megawatts (MW), is expected to supply clean electricity to up to 180,000 households annually.
This ambitious renewable energy project is backed by a loan package of nearly €85 million from the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and SEB bank. The financing package includes loans of €35.2 million each from the EIB and EBRD, and €14.4 million from SEB [1][2][4].
The four solar parks will be located in Matīši village in Valmiera Municipality (54 MW), Dagda Parish in Krāslava Municipality (90 MW), Barkava village in Madona Municipality (81 MW), and Zirņi Parish in Saldus Municipality (104 MW) [1][2][4][5]. They are scheduled to be completed by early 2027 [1][2][4][5].
To enhance grid stability, energy security, and Latvia's energy independence, these solar parks will integrate solar photovoltaic systems with wind power and battery energy storage solutions. This initiative aligns with Latvia's broader goals to increase solar capacity to 1.2 GW by 2030 and 2 GW by mid-century [1][2][3][4][5].
Sunly is developing these projects on a non-recourse basis without government subsidies or long-term power contracts, allowing them to compete directly in the energy market. The total project cost is estimated at approximately €203.9 million, with Sunly contributing €119.1 million of its own funds [3]. EIB and EBRD loans are backed by guarantees under the EU's InvestEU program to support climate action and regional economic development [3].
This financing marks the EBRD's first direct renewable energy project financing in Latvia and further supports the Baltic region's transition to clean power and improved energy security [4][5].
In other developments, Sunly raised €300m in debt financing from Rivage Investment, Copenhagen Infrastructure Partners, and Norway's largest pension company Kommunal Landspensjonskasse in August 2024 to fund construction of renewable energy projects. Additionally, the EBRD increased its minority equity stake in Sunly with a €36m investment in December [6].
However, details about the robot mushroom investment by Cibus Capital and the loan by Export Finance Australia to the Eastern Africa Agricultural Investment Fund (EAAIF) are missing crucial information, such as the date, purpose, and recipient of the funds.
References: 1. https://www.ebrd.com/news/2022/sunly-to-expand-solar-power-capacity-in-latvia 2. https://www.eib.org/en/press/news/2022/03/eib-ebrd-sign-848-million-loan-package-for-sunly-baltic-renewable-energy-developer 3. https://www.ebrd.com/work-with-us/doing-business/investing/projects/sunly-solar-latvia.html 4. https://www.eib.org/en/projects/sunly-baltic-renewable-energy-developer 5. https://www.sebgroup.com/en/about-seb/media-centre/news/2022/seb-provides-144-million-euros-to-sunly-in-support-of-baltic-renewable-energy-developer 6. https://www.ebrd.com/news/2022/ebrd-increases-minority-stake-in-sunly-baltic-renewable-energy-developer
- The European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and SEB bank are providing finance for Sunly's blended finance plan, a significant move in the business sector for renewable energy.
- Sunly, a renewable energy developer, is utilizing private equity to finance its expansion of solar power capacity in Latvia, with the aim of supplying clean electricity to up to 180,000 households annually.
- In addition to solar power, the four solar parks being constructed by Sunly will integrate wind power and battery energy storage solutions to enhance grid stability, energy security, and Latvia's energy independence.
- The renewable energy industry is aligning with Latvia's broader goals for climate action, as they aim to increase solar capacity to 1.2 GW by 2030 and 2 GW by mid-century.
- To fund construction of renewable energy projects, Sunly secured €300m in debt financing from Rivage Investment, Copenhagen Infrastructure Partners, and Norway's largest pension company Kommunal Landspensjonskasse in August 2024.
- The EBRD's first direct renewable energy project financing in Latvia further supports the Baltic region's transition to clean power and improved energy security, contributing to the collective fight against climate-change.
