The European Bank for Reconstruction and Development (EBRD) is supporting the expansion of renewable energy in Latvia through a €35.2 million loan provided to Sunly, a prominent renewable energy developer operating in the Baltic region. This financing is part of a broader €84.8 million loan package that is co-financed with the European Investment Bank (EIB) and Latvia’s SEB Bank. Notably, this marks the EBRD’s first direct investment in a renewable energy project in Latvia.

The funding will support the development of four hybrid solar parks in Latvia, making it one of the most significant renewable energy projects in the country to date. These parks, which will combine solar photovoltaic systems with wind energy and battery energy storage systems (BESS), are expected to reach a total installed capacity of 329 MW. Once completed by early 2027, the parks are projected to generate enough clean electricity to power up to 180,000 households annually. The installations will be located in the municipalities of Valmiera, Krāslava, Madona, and Saldus, contributing to improved energy security and grid stability in the country.

Grzegorz Zielinski, EBRD Head of Energy for Europe, said in a statement, “We’re pleased to build on our partnership with Sunly and support the development of new renewable energy capacity in Latvia. This marks an important step toward strengthening the Baltic region’s energy security and advancing its climate goals. We look forward to contributing our expertise to help scale up this capacity and support the green energy transition.”

Tomas Kairys, EBRD Head of Baltic States, mentioned, “With this financing, Sunly will contribute to the expansion of Latvia’s installed solar capacity by approximately 50 per cent, supporting its plans to increase the share of renewables in its energy mix. This transaction reflects two of the EBRD’s key priorities in Latvia and the wider region: to support the growth and competitiveness of innovative, high-potential companies, and contribute to the region’s energy security and green transition.”

The EBRD’s portion of the loan is supported by a first-loss guarantee under the European Union’s InvestEU programme. As one of the main implementing partners of InvestEU, the EBRD helps mobilize sustainable investment, innovation, and employment within the EU. The programme aims to generate over €372 billion in additional investment between 2021 and 2027. As part of this initiative, the EBRD will leverage €777 million in InvestEU guarantees to support up to €3.8 billion in investments across various sectors.

Sunly, based in Estonia, is a renewable energy developer and independent power producer with operations in Poland and across the Baltic region. The company has a diverse group of shareholders, including Mirova, a French asset manager focused on sustainable investments. Since 2023, the EBRD has also held a minority equity stake in Sunly. With over €1.2 billion already invested in Latvia, the EBRD remains a key institutional investor in the country and the wider Baltic region, playing a central role in advancing the green energy transition.