European Energy secures financing for 148MW solar farm in Latvia

The Danish renewable energy developer European Energy has secured EUR 68 million in financing to construct a 148MWp solar farm in Latvia.

The financing package comes from a consortium of financial institutions, including the Nordic Investment Bank (NIB), Luminor Bank, and NORD/LB. Notably, NIB’s EUR 28 million loan is supported by the European Union’s InvestEU Framework Operation on Clean Energy Transition, marking NIB’s first InvestEU loan in Latvia.

“European Energy is keen on driving the transition from fossil fuels to renewable energy in the Baltics,” stated Jens-Peter Zink, Deputy CEO of European Energy. “A lot of financial resources are needed for this task, and we are satisfied that NIB sees a great potential in this endeavour.”

This project is crucial for Latvia, which significantly relies currently still on fossil fuels, particularly natural gas. The added solar capacity, providing green electricity to over 40,000 households, will advance the country’s green transition and lessen its dependence on imported energy. Latvia’s current solar generation capacity is 600MW.

Stelo Orienta, a subsidiary of European Energy, will start construction of the solar PV farm in early 2025. The solar farm is expected to start commercial operations in the first half of 2026. Once finished, the solar farm will be among Latvia’s largest.

The InvestEU programme provides the EU with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the EU’s policy priorities, such as the European Green Deal and the digital transition. You can read more at NIB and InvestEU.

COBALT’s team, comprising Partner Gatis Flinters and Senior Associates Inga Tenisa and Mārtiņš Tarlaps, supported European Energy in this transaction.

NIB announcement.