Sunly secures €300 million to boost renewable energy projects across Baltics and Poland

Sunly, a renewable energy producer, has secured €300 million in debt financing to accelerate the development of 1.3 GW of solar, wind, storage, and hybrid energy projects across the Baltics and Poland. The financing, provided by Rivage Investment through its infrastructure debt funds and Copenhagen Infrastructure Partners (CIP) via its Green Credit Fund I, with additional backing from Norway’s largest pension company, Kommunal Landspensjonskasse (KLP), underscores strong market confidence in Sunly’s role in advancing regional energy security.

This investment comes at a critical time as the European Union seeks to reduce its dependence on Russian gas. Despite efforts to cut reliance, EU countries saw a 30% increase in natural gas imports from Russia in May 2024 compared to September 2022, according to Clean Energy Wire. The Baltic states and Poland, historically vulnerable to energy price fluctuations and supply disruptions due to geopolitical tensions, are set to benefit from upcoming desynchronization from the Russian and Belarusian electricity grid, scheduled for February next year, aimed at bolstering energy independence.

Sunly’s co-founder and CEO, Priit Lepasepp, emphasized that the investment will enhance infrastructure with new grid connections and solar parks in the Baltics, supporting the expansion of their onshore wind and storage pipeline. The focus will be on developing hybrid pipelines with storage capabilities and advancing the electrification of heating and mobility systems, thereby reducing reliance on imported fossil fuels and maximizing the use of local renewable resources.

Sunly plans to create integrated hybrid parks that combine wind, solar, and energy storage at a single connection point, improving energy production stability and cost-efficiency by reducing grid connectivity charges. This approach is expected to significantly benefit consumers, particularly large industrial clients with high energy consumption, by enhancing regional energy security and operational efficiency.

Rivage Investment’s Gaétane Tracz expressed support for Sunly’s ambitious growth trajectory, highlighting the shared mission of contributing to European energy security and delivering investments with attractive performance and ESG impact. Jakob Groot of CIP echoed this sentiment, noting that the financing package will significantly contribute to the development of renewable energy projects across the Baltics and Poland, aligning with decarbonization goals in the region.

One of the first projects to benefit from this financing is the 244 MW Risti solar park in Estonia, capable of powering 55,000 households annually. Expansion plans for this hybrid park include the addition of onshore wind turbines and battery storage. Construction is also set to begin on four solar parks in Latvia with a combined capacity of 553 MW, designed as hybrids with potential future integration of wind or battery storage.

This financing brings Sunly’s total backing to €765 million in debt and equity capital from various investors, including French fund Mirova and the European Bank for Reconstruction and Development (EBRD). In 2023, Sunly raised approximately €200 million from existing investors to further develop solar and wind parks across Estonia, Latvia, Lithuania, and Poland.

Photo: Sunly