EBRD backs landmark Latvian wind farm with €32 million package

• EBRD extends €32 million loan for landmark 112 MW wind farm in Latvia
• Smiltene project will be one of the largest wind farms in the country, increasing Latvia’s wind power capacity by approximately 80 per cent
• Investment will strengthen Latvia’s energy security and support green transition

The European Bank for Reconstruction and Development (EBRD) is boosting Latvia’s energy security and green transition by supporting the development of one of the largest wind farms in the country.

The Bank is extending €32 million to support construction and operation of the landmark 112 MW onshore Smiltene wind farm in northern Latvia, part of a €92 million package co-financed by the Nordic Investment Bank (NIB) and Luminor Bank. The EBRD’s financing is backed by an InvestEU guarantee.

The Smiltene wind farm will boost Latvia’s installed wind capacity by approximately 80 per cent, helping to diversify the country’s energy mix and directly supporting the country’s ambitious plans to increase the share of renewables in its electricity consumption to 80 per cent by 2030. The renewables’ expansion is also consistent with Latvia’s drive for energy independence and resilience, especially when combined with the Baltic states’ joint efforts to strengthen energy security and better integrate with the wider European energy network.

Smiltene is expected to produce 284 GWh of electricity, translating into approximately 55,000 tonnes of CO₂ emissions avoided annually. Most of the generated electricity will be sold on the local market, indirectly supporting its liquidity.

The EBRD is a leading implementing partner for the European Union’s InvestEU programme, which supports sustainable investment, innovation and job creation in the region. It aims to trigger more than €372 billion in additional investment in 2021-27. Between 2022 and 2027, InvestEU guarantees worth €777 million will be leveraged by the EBRD to finance investments of up to €3.8 billion in eligible sectors.

The Smiltene wind farm is being constructed by Sabiedrība ar ierobežotu atbildību WPR2, a limited liability company incorporated in Latvia for the sole purpose of the development, construction and operation of this project. It is owned by the Taaleri SolarWind III Fund – managed by leading European renewable energy fund manager Taaleri Energia Funds Management – and Atsinaujinančios Energetikos Investicijos (AEI), a Lithuanian closed-end investment company focused on renewables and managed by Lords LB Asset Management.

The EBRD is a leading institutional investor in Latvia, having invested more than €1.2 billion in the country to date. The Bank’s activities focus on supporting Latvia’s transition to a greener and more resilient economy through investments in renewable energy, capital market development and innovation-driven sectors.