Latvia to get solar-power boost as energy company Sunly receives almost €85 million international financing

This article is published in association with European Investment Bank.

Latvia is set to get more clean energy as a result of almost € 85 million in international financing for renewable-electricity provider Sunly. Estonia-based Sunly will use the loans from the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD) and SEB to build four solar parks in Latvia with total capacity of 329 megawatts (MW) – enough to meet the annual electricity consumption of up to 180,000 households.

The project marks one of Latvia’s most ambitious renewable-energy initiatives to date and will accelerate the Baltic region’s shift to clean power while enhancing Latvia’s energy independence. The financing package includes loans of €35.2 million from the EIB, €35.2 million from the EBRD and €14.4 million from SEB.

The solar parks are due to be completed by early 2027 and will be located near Matīši village in Valmiera Municipality (54 MW), in Dagda Parish, Krāslava Municipality (90 MW), near Barkava village in Madona Municipality (81 MW) and in Zirņi Parish, Saldus Municipality (104 MW).

“Latvia’s bold push for hybrid solar infrastructure is exactly the kind of forward-looking investment Europe needs,” said EIB Vice-President Thomas Östros. “We are proud to support Sunly’s vision — not just to generate clean power, but to build energy systems that are resilient, flexible, and future-ready. This project is a blueprint for how we can accelerate the green transition while strengthening regional energy security.”

While the scope of this financing will support the solar component, the broader ambition is to develop all sites as hybrid parks, by subsequently integrating wind energy and battery energy storage systems, aiming to ensure more stable electricity production, improve grid efficiency, and enhance 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.”

Latvia’s installed solar capacity reached approximately 660 MW at the end of 2024, more than doubling from 305 MW in 2023 and 100 MW in 2022. According to the long-term planning guidelines Energy Strategy Latvia 2050, solar capacity is projected to reach around 1.2 GW by 2030, gradually increasing to 2.0 GW in the baseline scenario by mid-century. Sunly’s large-scale solar projects are set to play a major role in achieving these targets.

This financing is a significant step toward strengthening Latvia’s economy and energy supply,” said Toms Nāburgs, Sunly’s country manager for Latvia. “By developing large hybrid solar parks, we are not only increasing the country’s renewable energy production capacity but also enhancing energy security and driving economic growth in the regions. 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 industrialization.

The solar parks are financed on a non-recourse basis without relying on government subsidies or long-term power contracts and are designed to thrive in a competitive energy market. Sunly has built more than 300 MW of renewable-energy capacity in Estonia, Latvia and Poland over the past five years, with plans to add a further 700 MW over the next two years

“SEB in the Baltics has been a financial partner for Sunly since 2019 and we are very proud to support company’s ambitious journey in Latvia with the state-of-the-art hybrid solar parks portfolio,” said Ints Krasts, Management Board member of SEB Latvia. “The solar capacities launched in 2027 will ensure diversity of energy sources and will strengthen energy independence of Latvia. This a signature cooperation for SEB Latvia as well as we are supporting it both as a lender and a hedge provider.”

The project’s total cost is estimated at € 203.9 million, with Sunly providing € 119.1 million. The EIB and EBRD portion of the new financing for Sunly is backed by a guarantee under the InvestEU programme and promotes climate action and economic and social cohesion.

Background information

EIB Group

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, the EIB finances investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and the bioeconomy, social infrastructure, the capital markets union and a stronger Europe in a more peaceful and prosperous world.  

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.    

High-quality, up-to-date photos of the EIB Group’s headquarters for media use are available here. 

About InvestEU programme

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment. 

Sunly  

Sunly is a renewable energy producer, dedicated to developing and operating renewable energy projects across the Baltics and Poland, while also investing in startups in the electrification sector and selling 100% renewable electricity to consumers in Estonia. At the heart of Sunly’s mission is renewable energy production, playing a crucial role in achieving regional climate goals, energy security, and affordability.

EBRD

The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 36 economies across three continents. The Bank is owned by 79 countries, as well as the European Union and the European Investment Bank. EBRD investments are aimed at making the economies in its regions competitive, well governed, green, inclusive, resilient and integrated.

SEB

SEB is a leading northern European financial services group with international reach. We exist to positively shape the future with responsible advice and capital, today and for generations to come. By partnering with our customers, we want to be a leading catalyst in the transition to a more sustainable world. In Sweden and the Baltic countries, SEB offers financial advice and a wide range of financial services. In Denmark, Finland, Norway, Germany and the United Kingdom, we have a strong focus on corporate and investment banking based on a full-service offering to corporate and institutional clients. The international nature of SEB’s business is reflected in our presence in more than 20 countries worldwide, with around 19,100 employees. At 30 June 2025, the Group’s total assets amounted to SEK 4,110bn while assets under management totalled SEK 2,744bn. Read more about SEB Group at sebgroup.com and about SEB Latvia at: Homepage | SEB