Tallinn-based Sunly, a renewable energy company and an investor in renewable energy and electrification startups, has secured nearly €85M in international financing to develop solar energy projects in Latvia.
The Estonia-based renewable electricity provider will receive €35.2M each from the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD), and €14.4M from SEB.
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Capital utilisation
Sunly, founded in 2019 by Priit Lepasepp, develops and operates renewable energy projects across the Baltics and Poland. The company also invests in electrification startups and sells renewable electricity in Estonia, contributing to regional climate goals and energy security.
The funding will support Sunly in the construction of four solar parks in Latvia with a total capacity of 329 megawatts. The output is expected to cover the annual electricity needs of up to 180,000 households.
The solar parks are expected to be completed by early 2027 and will be situated near Matīši village in Valmiera Municipality (54 MW), in Dagda Parish of Krāslava Municipality (90 MW), near Barkava village in Madona Municipality (81 MW), and in Zirņi Parish of Saldus Municipality (104 MW).
Thomas Östros, Vice-President of EIB, says, “Latvia’s bold push for hybrid solar infrastructure is exactly the kind of forward-looking investment Europe needs. 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.”
Sunly plans to expand these sites into hybrid energy parks by later adding wind power and battery energy storage systems. The aim is to provide more stable electricity output, increase grid efficiency, and support energy security.
Grzegorz Zielinski, EBRD Head of Energy for Europe, adds, “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.”
Strengthening Latvia’s economy and energy supply
Latvia’s installed solar capacity reached 660 MW by the end of 2024, up from 305 MW in 2023 and 100 MW in 2022. Under the planning guidelines Energy Strategy Latvia 2050, solar capacity is projected to reach 1.2 GW by 2030 and 2.0 GW by mid-century. Sunly’s upcoming solar parks are expected to contribute to these targets.
The solar projects are being developed on a non-recourse basis, without relying on government subsidies or long-term power contracts. Sunly has previously built over 300 MW of renewable capacity across Estonia, Latvia, and Poland, with plans to add 700 MW in the next two years.
The total cost of the current project is €203.9M, with Sunly providing €119.1M. The remaining amount is financed by the EIB and the EBRD, supported by the InvestEU guarantee.
The InvestEU programme provides long-term funding for the European Union by leveraging private and public funds to support recovery and key policy goals like the Green Deal and digital transition. It combines multiple EU financial instruments into three components: the InvestEU Fund, Advisory Hub, and Portal. The InvestEU Fund uses a €26.2B EU budget guarantee to back projects through financial partners, aiming to mobilise at least €372B in additional investment.
Toms Nāburgs, Sunly’s country manager for Latvia, says, “This financing is a significant step toward strengthening Latvia’s economy and energy supply. 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 industrialisation.”
Ints Krasts, Management Board member of SEB Latvia, adds, “SEB in the Baltics has been a financial partner for Sunly since 2019, and we are very proud to support the company’s ambitious journey in Latvia with the state-of-the-art hybrid solar parks portfolio.”
“The solar capacities launched in 2027 will ensure diversity of energy sources and will strengthen the energy independence of Latvia. This is a signature cooperation for SEB Latvia as well as we are supporting it both as a lender and a hedge provider.”
Brief about the EIB Group
The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments aligned with EU policy goals, including climate action, digitalisation, security, cohesion, agriculture, social infrastructure, and capital markets.
In 2024, the EIB Group, which includes the European Investment Fund (EIF), signed nearly €89B in financing for over 900 projects aimed at supporting Europe’s competitiveness and security.
