Latvia to Add 329 MW of Solar Power with €85M Backing for Sunly’s Hybrid Parks

In a transformative step toward achieving its renewable energy goals, Latvia will receive nearly €85 million in international financing to support the construction of four large-scale solar parks by Estonian renewable electricity company Sunly. This major clean energy investment — backed by the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), and SEB Bank — will significantly expand Latvia’s solar generation capacity while accelerating the Baltic region’s green energy transition and reducing reliance on imported fossil fuels.

€85 Million Financing for Four Solar Parks

The total financing package comprises:

• €35.2 million from the EIB

• €35.2 million from the EBRD

• €14.4 million from SEB Bank

The project, valued at €203.9 million, is being developed on a non-recourse basis — meaning that it is not backed by government guarantees or long-term power purchase agreements — with €119.1 million in capital provided directly by Sunly. The EIB and EBRD loans are supported by the InvestEU programme, which prioritizes climate action and economic and social cohesion in EU member states.

Locations and Capacity of the New Solar Parks

Sunly’s solar parks will collectively generate 329 megawatts (MW) of electricity — enough to power up to 180,000 Latvian households annually. The four sites, strategically located across the country, include:

• Matīši village, Valmiera Municipality – 54 MW

• Dagda Parish, Krāslava Municipality – 90 MW

• Barkava village, Madona Municipality – 81 MW

• Zirņi Parish, Saldus Municipality – 104 MW

The parks are scheduled for completion by early 2027, marking one of the most ambitious renewable energy ventures in Latvia’s history.

From Solar to Hybrid: Vision for the Future

While this round of funding targets the solar infrastructure, Sunly’s longer-term goal is to transform all four sites into hybrid renewable energy parks. This involves integrating:

• Wind energy installations

• Battery energy storage systems (BESS)

This hybrid approach will increase grid stability and reliability by compensating for the intermittent nature of solar and wind energy, ultimately ensuring a more consistent energy supply. It also aligns with the European Union’s energy diversification strategy, particularly in light of the region’s efforts to wean off Russian energy sources.

Strategic Importance for Latvia’s Energy Future

The project plays a vital role in meeting targets set out in Latvia’s Energy Strategy 2050, which foresees:

• 1.2 GW of solar capacity by 2030

• Up to 2.0 GW of solar generation by 2050

Latvia’s installed solar capacity has already experienced rapid growth, rising from 100 MW in 2022 to 305 MW in 2023, and reaching approximately 660 MW by the end of 2024. Sunly’s contribution will represent nearly half of the solar expansion required to meet the 2030 goal, making it a central player in the country’s clean energy roadmap.

Stakeholders Applaud Green Energy Commitment

Thomas Östros, Vice-President of the EIB, hailed Latvia’s ambition:

“Latvia’s bold push for hybrid solar infrastructure is exactly the kind of forward-looking investment Europe needs. This project is a blueprint for how we can accelerate the green transition while strengthening regional energy security.”

Grzegorz Zielinski, EBRD’s Head of Energy for Europe, emphasized the regional impact:

“This marks an important step toward strengthening the Baltic region’s energy security and advancing its climate goals.”

Toms Nāburgs, Sunly’s country manager for Latvia, underlined the local and national benefits:

“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.”

Ints Krasts, Management Board member of SEB Latvia, echoed the significance of the partnership:

“SEB has been a financial partner for Sunly since 2019. These solar capacities launched in 2027 will strengthen Latvia’s energy independence and secure a sustainable energy mix.”

A Model for Sustainable Growth in the Baltics

Sunly, already a prominent player in the Baltic and Polish renewable markets, has built over 300 MW of green energy capacity over the last five years. With plans to add an additional 700 MW by 2027, the company is positioning itself as a key driver of regional energy transformation.

This project stands as a model for sustainable, unsubsidized clean energy investment in Europe. It not only promotes energy transition and climate resilience but also catalyzes economic development and job creation in rural municipalities across Latvia.

As Europe races toward a climate-neutral future, Latvia — powered by Sunly’s hybrid solar vision and international financial cooperation — is stepping confidently into a cleaner, more resilient energy era.