Danish renewables company European Energy has secured €37.9 million in financing for a major hybrid solar and energy storage project in Latvia, a landmark move for the nation’s green energy transition.
A Major Latvia solar storage Project in Latvia
European Energy, a Danish leader in renewable energy, is spearheading a significant hybrid project in Latvia, backed by a €37.9 million long-term financing package. The investment, provided by Luminor Bank, will fund the development of a state-of-the-art facility in the municipality of Saldus.
The project, co-owned by European Energy and Sampension, will feature a 65 MW solar park and a substantial 92 MWh battery energy storage system (BESS) spread across approximately 96 hectares. Construction is already underway, with completion scheduled for the second half of 2026. This investment highlights the significant capital involved in such large-scale installations, detailed in the typical solar panel manufacturing plant cost breakdown.
Once operational, the Saldus plant is expected to be one of the most advanced renewable energy installations in the Baltic region. It will be connected to the national grid, providing clean energy and crucial grid-stabilizing services.
Pioneering Energy Storage in Latvia
This project marks a critical milestone for Latvia, as it combines a utility-scale solar park with a large-scale BESS. The integration of battery storage is a game-changer for the grid. It allows for the storage of solar energy generated during the day to be dispatched during peak demand hours or when the sun isn’t shining, ensuring a more reliable and flexible power supply.
This enhanced flexibility is particularly vital for Latvia’s energy security, especially following the country’s recent disconnection from the BRELL power network. The BESS will play a key role in balancing electricity supply and demand, thereby strengthening the stability of the national grid.
“This financing will help us build a new solar park in Latvia, and at the same time, we will learn how battery storage can complement the production from solar parks,” said Knud Erik Andersen, CEO of European Energy. The success of such a project relies on a sophisticated solar panel manufacturing process to produce the high-efficiency modules required.
Supporting Europe’s Energy Transition
This development in Saldus is a powerful example of Europe’s accelerating energy transition. As the continent moves to reduce its reliance on fossil fuels and bolster its energy independence, hybrid projects that combine renewable generation with energy storage are becoming increasingly critical.
European Energy has been a key player in this transition since its founding in 2004. The company has a deep commitment to the Latvian market, having already developed and commissioned 125 MW of renewable energy capacity, with another 50 MW currently under construction. Furthermore, European Energy is actively developing a pipeline of over 1,000 MW of solar and wind projects in the country, demonstrating a long-term vision for the region that builds on the basics of solar panel manufacturing.
Strategic Financing for a Greener Future
The realization of ambitious renewable energy projects like the Saldus facility hinges on strategic financial partnerships. The €37.9 million in long-term financing from Luminor Bank, supported by legal expertise from the COBALT law firm, underscores the confidence of financial institutions in the viability and importance of renewable energy infrastructure.
Such green financing is essential for covering the significant upfront costs associated with sourcing solar panel raw materials and constructing large-scale power plants. These financial mechanisms are the catalysts that turn national energy goals into tangible assets, generating clean power and enhancing energy security.
European Energy’s investment in Latvia’s renewable energy sector is a significant step towards achieving the country’s climate targets. The project not only contributes to Latvia’s clean energy capacity but also sets a powerful precedent for future hybrid projects across the Baltic states, paving the way for a more resilient and sustainable energy future.
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