Latvia. Stelo Orienta SIA
| Date of agreement: | 19 Dec 2024 |
|---|---|
| Country: | Latvia |
| Customer: | Stelo Orienta SIA |
| Amount in EUR: | EUR 28 million |
| Maturity: | 19 years |
Project
The investment loan will co-finance European Energy A/S’s 148 MWp solar farm, Stelo Orienta SIA, in Ventspils municipality in Latvia. The transaction is eligible under the NIB’s Clean Energy Transition Framework Operation approved by the InvestEU Investment Committee.
European Energy will start the construction of the solar PV farm in the Q1 of 2025. The solar farm is expected to be fully grid-connected in Q1 of 2026. Once finished, the solar farm will be among Latvia’s largest.
The solar farm project is fully developed by European Energy A/S. European Energy is a global renewable energy developer with projects in 29 countries. Founded in Denmark in 2004, European Energy manages all stages of wind and solar energy production, from development and construction to operations, and explores Power-to-X solutions like green hydrogen production.
Fulfilment of NIB's mandate
The solar farm will significantly increase European Energy’s power generation capacity in the Baltics, as well as increase the overall solar generation capacity in Latvia.
The construction of new solar power generation capacity has increased rapidly in the recent years. Sadales tīkls AS, Latvia’s largest distribution system operator, reported that by end of 2024, solar power generation capacity in Latvia had reached approximately 600 MWp, a six-fold increase from just 100 MWp at the end of 2022.
Latvia’s energy system is currently still relying on fossil fuels, particularly on natural gas, which makes creating additional renewable energy capacities in the country a vital step towards the green transition.
The planned desynchronisation from the Russian and Belarusian power grids will heighten the need for reliable domestic energy generation in the Baltics. This means that creating new renewable capacities will help the Baltic states towards energy independence.
Solar power generation plays a particularly critical role during the summer months when the hydropower generation capacities are low, and the solar activity is at its peak.
Key indicators of impacts in relation to the investments:
- Renewable power generation: GWh/a
- Added renewable power generation capacity (MWp)
Sustainability summary
Solar power generation is one of the cleanest methods of generating electricity, therefore the creation of an additional solar farm in Latvia, promotes the green transition.
The solar farm borders a Natura 2000 nature reserve. This makes the hydrological regime in the area sensitive to changes. The EIA identified extra steps in order to ensure that the solar farm does not have any negative impact on the nature reserve. The construction permit was issued for this project with the restriction of not to make any changes to the hydrological regime of the solar park or the adjacent Natura 2000 reserve.
A sustainability proofing has been carried out in accordance with the InvestEU Fund requirements, and a summary can be found here.
