Tallinn-based Sunly, a renewable energy producer, announced that it has secured €300M in debt financing to drive the development of 1.3 GW of solar, wind, storage, and hybrid parks in the Baltics and Poland.

Sunly is an independent energy producer focused on developing renewable energy projects in the Baltics and Poland. It also manages a portfolio of renewable energy and electrification startups in Estonia. 

The company was founded by the 4Energia team after selling 4Energia to Enefit Green AS, at which point 4Energia was the largest renewable energy company in the Baltics. Currently, Sunly operates with local teams in Estonia, Latvia, Lithuania, and Poland.

Investors supporting Sunly

The funding comes from Rivage Investment via its REDI HR2 fund and Fund for Infrastructure Climate Solutions, Copenhagen Infrastructure Partners (CIP) through its Green Credit Fund I, and Norway’s largest pension company, KLP, via CIP-managed funds.

​Gaétane Tracz, Partner and Head of the Infrastructure Debt team at Rivage, says, “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 European Union energy security and to deliver investments with both attractive performance and ESG impact.”

​Jakob Groot, Partner at CIP and Co-Head of the CI Green Credit Fund I, adds, “We are very excited to start our partnership with Sunly, and their highly experienced management team. This financing package will contribute significantly to the development and construction of renewable energy projects, supporting the decarbonisation ambitions across the Baltics and Poland, and represents an attractive investment for our Green Credit Fund I.”

Capital utilisation

​Priit Lepasepp, co-founder and CEO of Sunly, says, “This investment enables us to improve our infrastructure with new grid connections and solar parks in the Baltics, which will support our onshore wind and storage pipeline expansion.”

“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.”

Sunly plans to develop integrated hybrid parks that combine wind, solar, and energy storage at a single connection point with a direct line to consumers. This approach stabilises energy production in varying weather conditions and reduces grid connectivity charges, which are expected to account for over half of total energy costs. 

The strategy aims to enhance regional energy security and operational efficiency, benefiting consumers, especially large industrial clients with high energy consumption.

On a mission to ensure the availability of clean energy

The 244 MW Risti solar park in Estonia is one of the first projects to benefit from Sunly’s financing, capable of powering 55,000 households annually. 

Planned as a hybrid park, it may later include wind turbines and battery storage. Construction will also begin on four solar parks in Latvia, totalling 553 MW, with future plans to add wind or battery storage. 

The 1.3 GW portfolio further includes large hybrid solar parks in Lithuania and various solar parks in Poland, all to be completed by the end of 2026.

Sunly’s expansion is backed by a total of €765M in debt and equity capital from investors, including Mirova, the European Bank for Reconstruction and Development (EBRD), and various banks. 

In 2023, the company raised €200M from existing investors to further develop solar and wind parks in Estonia, Latvia, Lithuania, and Poland.