Latvia is set to advance its clean energy goals with nearly €85 million in international financing secured by renewable electricity provider Sunly. The Estonia-based company will use the funds to construct four large-scale solar parks across Latvia, totaling 329 megawatts (MW) in capacity. Once operational, these solar parks will generate enough electricity to power up to 180,000 households annually, making the project one of the most ambitious renewable energy initiatives in Latvia’s history.
The financing includes €35.2 million each from the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD), along with €14.4 million from SEB. These funds will support the construction of solar parks located in Valmiera, Krāslava, Madona, and Saldus municipalities, with completion expected by early 2027.
According to EIB Vice-President Thomas Östros, the investment reflects a forward-looking approach to clean energy that also strengthens regional energy resilience. The broader vision for these sites goes beyond solar power—they are planned as hybrid energy parks that will also integrate wind power and battery storage systems to enhance grid efficiency and ensure stable electricity generation.
Grzegorz Zielinski, EBRD Head of Energy for Europe, emphasized that the project will help advance climate goals in the Baltic region while bolstering energy security. The EBRD will also offer technical expertise to support the expansion of Latvia’s renewable energy sector.
Latvia’s installed solar capacity has grown rapidly, from just 100 MW in 2022 to 660 MW by the end of 2024. National energy planning targets estimate solar capacity will reach 1.2 GW by 2030 and 2 GW by mid-century. Sunly’s projects are expected to play a central role in meeting these goals.
Sunly’s country manager for Latvia, Toms Nāburgs, highlighted the broader economic and community benefits of the solar parks. In addition to increasing renewable energy production, the projects are expected to support local development initiatives and contribute to Latvia’s broader electrification and industrialization strategies.
The solar parks will be developed on a non-recourse basis—without government subsidies or long-term power contracts—allowing them to compete directly in the energy market. Over the past five years, Sunly has developed more than 300 MW of renewable capacity in Estonia, Latvia, and Poland, and plans to add another 700 MW within the next two years.
SEB has supported Sunly since 2019 and is involved in the Latvian project both as a lender and hedge provider. Ints Krasts of SEB Latvia noted that the initiative will diversify Latvia’s energy mix and strengthen its energy independence, describing it as a flagship cooperation for the bank.
The total cost of the project is estimated at €203.9 million, with Sunly contributing €119.1 million. The EIB and EBRD loans are backed by guarantees under the EU’s InvestEU programme, supporting both climate action and regional economic development.
