Renewables producer Sunly has raised €300m in debt financing to accelerate the construction of 1300MW of solar, wind, storage and hybrid parks across the Baltics and Poland.
Sunly intends to develop integrated hybrid parks that combine wind, solar and energy storage batteries at single connection point and direct line to consumers to improves energy production stability in various weather conditions and optimise cost-efficiency by reducing grid connectivity charges.
The financing is provided by Rivage Investment via REDI HR2 and Copenhagen Infrastructure Partners (CIP) through its Green Credit Fund 1, with additional participation from Norwegian largest pension company Kommunal Landspensjonskasse (KLP) through funds managed by CIP.
The amount raised reflects “strong market confidence” in Sunly’s capacity to spearhead regional energy transformation.
One of the first projects to benefit from this financing is the 244MW Risti solar park in Estonia, where Sunly has expansion plans that include wind turbines and battery storage in the future.
Construction will also immediately start on four solar parks in Latvia, with a combined capacity of 553MW, also designed as hybrids, with eventual plans to integrate wind or battery storage or a combination of both.
The portfolio also includes several large hybrid solar parks in Lithuania, as well as both small and large solar parks in Poland by end of 2026.
In the Baltic states and Poland, Russia’s significant influence in the regional energy market has historically exposed these areas to price fluctuations and supply disruptions associated with geopolitical tensions, often leading to higher energy costs for consumers than in other European nations.
The upcoming desynchronisation from the Russian and Belarusian electricity grid in February next year is intended to boost regional energy independence and security.
Sunly co-founder and chief executive Priit Lepasepp said: “To help reduce energy costs, our focus will be on two key areas: building a hybrid pipeline with storage capabilities and advancing the electrification of heating and mobility systems, thereby diminishing our reliance on imported fossil fuels and optimising the use of local renewable resources.”
Partner and head of the infrastructure debt team at Rivage Gaetane Tracz said: “We are delighted to support Sunly’s strong leadership team through their ambitious growth trajectory and to help accelerate the construction of hybrid renewable energy parks across the Baltics and Poland.
“We share Sunly’s mission of contributing to produce power with purpose, to contribute to EU energy security and to deliver investments with both attractive performance and ESG impact.”
With this investment Sunly’s expansion has been backed by a total of €765m in capital from investors, including French fund Mirova, the European Bank for Reconstruction and Development (EBRD) and various banks.
In 2023, Sunly raised approximately €200m from its existing investors, including Mirova and EBRD.