Tallinn-based renewable electricity provider Sunly has secured nearly €85 million in international financing to build four solar parks across Latvia. With a combined capacity of 329 megawatts (MW), the parks are expected to power up to 180K homes annually, making this one of Latvia’s most ambitious renewable energy projects to date. The solar initiative is designed to significantly boost the Baltic region’s clean energy production and strengthen Latvia’s energy independence.
The €85 million funding is structured as a collaborative effort among leading European financial institutions. The European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) are each providing €35.2 million in loans.
An additional €14.4 million comes from SEB. Importantly, this financing is non-recourse, which means it does not rely on government subsidies or long-term power purchase agreements. Sunly itself will contribute €119.1 million toward the project, bringing the total investment to an estimated €203.9 million.
Strategic locations across Latvia
The four solar parks 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). These locations were selected to optimise sunlight availability and integrate effectively with local infrastructure. The parks are due for completion by early 2027.
Hybrid vision for energy stability
While the current project focuses on solar power, Sunly’s broader ambition is to develop hybrid parks by integrating wind energy and battery storage at each site. This approach aims to ensure more stable electricity production, improve grid efficiency, and enhance energy security. By combining multiple technologies, Sunly is positioning its sites to deliver consistent, dispatchable clean energy.
It is 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.
Latvia has seen rapid growth in solar capacity in recent years. Installed capacity rose from just 100 MW in 2022 to 305 MW in 2023, reaching approximately 660 MW by the end of 2024. National energy planning documents forecast solar capacity to reach 1.2 GW by 2030 and potentially 2.0 GW by 2050. Sunly’s project, contributing 329 MW, represents a significant step toward these national targets.
From 4Energia to Sunly
Sunly was founded in 2019 by the team behind 4Energia, formerly the largest renewable energy company in the Baltics. After 4Energia was acquired by Enefit Green AS, the founding team – Martin Kruus, Kalle Kiigske, and Priit Lepasepp launched Sunly as an independent energy producer with a focus on Estonia, Latvia, Lithuania, and Poland. In addition to developing renewable energy infrastructure, Sunly also manages a portfolio of startups in renewable energy and electrification.
Over the past five years, Sunly has built more than 300 MW of renewable capacity in the region. With this latest initiative, the company plans to add a further 700 MW within the next two years. Its projects are structured to operate without state subsidies, relying instead on market competitiveness and private financing.
Aligns with EU’s climate goals
The EIB and EBRD financing is supported under the InvestEU programme, an EU initiative aimed at driving sustainable investment and innovation across Europe. The Sunly project aligns with the EU’s broader climate goals and regional development priorities, promoting both energy transition and social cohesion in the Baltics.
Sunly’s large-scale solar development is more than a clean power project. It’s a strategic move to bolster regional energy resilience, drive private-sector innovation, and meet EU climate ambitions. By focusing on unsubsidised, market-driven infrastructure, Sunly is paving the way for a new model of renewable energy development in Eastern Europe.
“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 industrialisation.”
“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.”
“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.”
“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.”