Latvia is preparing to boost its renewable energy output thanks to nearly €85 million in international financing awarded to renewable electricity provider Sunly, as revealed by the European Investment Bank (EIB).

Estonia-based Sunly will use loans from the EIB, the European Bank for Reconstruction and Development (EBRD) and SEB to build four solar parks in Latvia with a combined capacity of 329 MW, enough to supply the annual electricity needs of up to 180,000 households. This project ranks among Latvia’s most ambitious renewable energy undertakings to date and marks a significant acceleration in the Baltic region’s clean energy transition while strengthening Latvian energy independence. The financing breakdown includes €35.2 million from both the EIB and the EBRD, and €14.4 million from SEB.

Construction is scheduled to be completed by early 2027, with sites planned near the village of Matši (54 MW, Valmiera municipality), Dagda Parish (90 MW, Kr slava municipality), Barkava (81 MW, Madona municipality), and Ziri Parish (104 MW, Saldus municipality).

According to Vice-President Thomas Östros of the EIB, this solar hybrid infrastructure in Latvia represents the strategic type of forward looking investment Europe requires. He highlighted its potential to deliver clean power, build resilient and flexible energy systems, and improve regional energy security.

The wider ambition is to develop these sites as hybrid parks, incorporating wind energy and battery storage systems to ensure more stable electricity generation, increased grid efficiency, and enhanced energy security. Grzegorz Zielinski of the EBRD stated that this financing is a major step toward bolstering energy security in the Baltic region and advancing climate targets, with expectations that the bank’s expertise will support the expansion of renewable capacity.

Latvia had approximately 660 MW of installed solar capacity at the end of 2024—more than double the 305 MW recorded in 2023. Its Latvia Energy Strategy 2050 projects solar capacity reaching around 1.2 GW by 2030, rising to 2.0 GW by mid-century. Sunly’s projects will be instrumental in achieving those goals.

Toms N burgs, Sunly’s Latvia Country Manager, emphasised that the hybrid solar parks will not only increase renewable capacity but also boost national energy resilience and support regional economic development. Sunly plans to reinvest in social and community projects to benefit the local areas involved.

The parks will be financed without government subsidies or long-term power purchase agreements, designed to prosper in a competitive energy market. Sunly has already built over 300 MW of renewable capacity in the Baltics and Poland over the past five years, and aims to add an additional 700 MW within the next two years.

Ints Krasts of SEB Latvia commented: “SEB Baltic has partnered with Sunly since 2019, and we’re proud to support this landmark renewable initiative in Latvia. This solar capacity will enhance energy diversity and strengthen the country’s energy independence.”

The total project cost is estimated at 203.9 million, of which Sunly will contribute €119.1 million. The EIB and EBRD’s funding to Sunly is backed by an InvestEU guarantee, promoting climate action and economic and social cohesion.