The European Bank for Reconstruction and Development (EBRD) has increased its equity stake in Estonian renewable energy developer Sunly with a €36m investment.
The EBRD became a minority shareholder in Sunly in 2023, having invested €30m alongside the French infrastructure group Mirova and other investors.
The additional capital injection brings the Bank’s total investment in the company to €66m.
The proceeds of the EBRD investment will support Sunly’s growth strategy, including the implementation of 1GW of operational renewables capacity in the region by the end of 2026.
The Bank’s participation in this capital increase is contributing to the unlocking of substantial external funding, which is essential to accelerating the implementation of Sunly’s ambitious pipeline of renewables projects in the Baltic states and Poland, EBRD said.
This pipeline is also central to delivering the European Union’s decarbonisation agenda and supporting the region’s energy security, it added.
Priit Lepasepp, co-founder and chief executive of Sunly, said: “The increased commitment from our existing investors demonstrates their confidence in Sunly’s ability to bring our ambitious plans to life.
“The company’s pipeline includes a diverse pool of solar, wind and hybrid projects, which have the potential to power millions of homes and significantly reduce greenhouse-gas emissions.
“With the additional capital, Sunly will be able to accelerate the construction of new renewable-energy capacities, critical to the energy transition.”
Grzegorz Zielinski, EBRD head of energy Europe, added: “Supporting the region’s clean-energy development and promoting the cross-border expansion of renewable-energy producers is a key priority for the EBRD.
“This additional participation in Sunly reconfirms the Bank’s commitment to strengthening its partnerships, promoting a sustainable future and meeting climate targets.”
The Bank will continue to lend its expertise to shape Sunly’s value creation, environmental, social and governance practices, and gender and economic-inclusion objectives.
A leader in climate finance, the EBRD is a major institutional investor in central Europe and the Baltic states.
To date, it has invested €1.17bn in Estonia, €1.15bn in Latvia, and €1.72bn in Lithuania, as well as more than €14.98bn in Poland.