The financing supports the construction of four solar parks with a total capacity of 329 megawatts by renewable energy developer Sunly.
The European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB) and commercial bank SEB have agreed an €84.8m loan package for Sunly, a Baltic region renewable energy developer, to expand solar power capacity in Latvia.
As part of the package, the EBRD and EIB are each providing €35.2m loans, while SEB is contributing €14.4m. The EBRD and EIB financing for Sunly is backed by a first-loss guarantee under the InvestEU programme, which supports sustainable investment, innovation and job creation in the EU.
The loans will help fund the development of four solar parks, due to be completed by early 2027, with total capacity of 329 megawatts (MW), which Sunly said would meet the annual electricity consumption of up to 180,000 households.
The parks are to be located in the municipalities of Valmiera (54 MW), Krāslava (90 MW), Madona (81 MW) and Saldus (104 MW). These will integrate solar photovoltaic systems with wind power and battery energy storage solutions to improve grid stability and improve energy security.
Financing
The project’s total cost is an estimated €203.9m, with Sunly providing €119.1m. The projects are being financed on a non-recourse basis with no reliance on government subsidies or long-term power contracts.
EIB Vice-President Thomas Östros said Latvia’s push to build hybrid solar infrastructure was “exactly the kind of forward-looking investment Europe needs”, providing resilient, flexible, clean energy systems.
“This project is a blueprint for how we can accelerate the green transition while strengthening regional energy security,” he said.
Toms Nāburgs, Sunly’s country manager for Latvia, said the financing was a significant step toward strengthening Latvia’s economy and energy supply.
“These parks will provide long-term benefits to local communities by supporting socially important projects and initiatives, as well as contributing to the country’s broader electrification and subsequent industrialisation,” he said.
Tallinn-based Sunly has built more than 300 MW of renewable energy capacity in Estonia, Latvia and Poland over the last five years, and plans to add a further 700 MW over the next two years.
Institutional backing
The company has received significant support for its projects in the region from European institutions and other lenders. In August 2024, Sunly said it had raised €300m in debt financing to fund construction of renewable energy projects across the Baltics and Poland from Rivage Investment, Copenhagen Infrastructure Partners and Norway’s largest pension company Kommunal Landspensjonskasse.
In December, the EBRD said it had increased its minority equity stake in Sunly with a €36m investment, having previously invested €30m alongside French asset manager Mirova – also a shareholder – and other investors in 2023. Stockholm-based SEB said it had been a financial partner for Sunly since 2019. The major European institutions have been very active in supporting clean energy projects across central and eastern Europe, a region that has been heavily dependent on fossil fuels for power generation.
Recently, the EBRD led a €315m financing for Renalfa IPP, an independent power producer that develops renewable energy projects across countries across the region, including Bulgaria, Hungary, Romania, and North Macedonia.
