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The European Bank for Reconstruction and Development (EBRD) is boosting Latvia’s renewable energy capacity through a new €35.2 million loan provided to Sunly, a leading Baltic renewable energy developer. The funding is part of a joint €84.8 million loan package co-financed with the European Investment Bank (EIB) and the local commercial bank SEB.
The EBRD’s investment - the Bank’s first direct renewable project financing in Latvia - will help Sunly to develop four hybrid solar parks across Latvia.
One of the most significant renewable energy projects in the country to date, the parks will have a total installed capacity of 329 MW once completed in early 2027 – enough to supply clean electricity to up to 180,000 households annually.
The solar parks will be located in Valmiera, Krāslava, Madona, and Saldus municipalities, and will integrate solar photovoltaic systems with wind power and battery energy storage solutions (BESS), providing grid stability and contributing to Latvia’s energy security.
"We’re pleased to build on our partnership with Sunly and support the development of new renewable energy capacity in Latvia," said Grzegorz Zielinski, EBRD Head of Energy for Europe. "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, said: “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 financing is backed by a first-loss guarantee under the InvestEU programme.
The EBRD is a leading implementing partner for the EU’s InvestEU programme, which supports sustainable investment, innovation and job creation in the European Union. It aims to trigger more than €372 billion in additional investment between 2021 and 2027. 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.
Sunly is a renewable energy developer and independent power producer based in Estonia, operating in Poland and the Baltic countries. The company benefits from a diverse shareholding base, including Mirova, a sustainability-focused French asset manager. The Bank is a minority shareholder in Sunly since 2023.
A leader in climate finance, the EBRD is a major institutional investor in Latvia and the wider Baltic region. To date, the Bank has invested over €1.2 billion in Latvia.