European Energy has revealed that it has sold half of its stake in a Latvian solar-plus-storage project to a Danish pension investor, exemplifying the company’s ambition to reinvest in renewable energy production across the European energy sector. Europe has seen the solar sector gaining momentum like a train barreling out of a station towards energy security in Europe. The end of Russian-made energy resources being imported into EU member states has placed an accelerated urgency on developing new renewable energy projects.

Lativa’s 111 MW Saldus solar and battery project exemplifies Europe’s embrace of the renewable energy sector

Latvia is not known for its large-scale energy projects, but has been boosted by the news that European Energy has sold a 50% stake in the 111 MW Saldus project to Sampension, one of Denmark’s largest and most profitable pension funds.

The Saldus project features a 65MW solar PV facility with a 46MW battery energy storage system, driving the renewable energy sector towards a reality of large-scale projects that provide Europe with energy security and flexibility. With the cold European winter fast approaching, Europe will need as much energy as it can muster to avoid any interruption in energy supply to its citizens.

European Energy’s leadership has outlined its expertise in developing large-scale solar projects

The company’s deputy chief executive, Mr Jens-Peter Zink, released a statement that noted the company’s expertise in developing projects that allow it to reinvest any returns from selling off stakes to other institutions or organizations.

“The capital recycled from projects like Saldus enables us to expand our pipeline of wind, solar, and hybrid projects across Europe.” – European Energy deputy chief executive, Mr Jens-Peter Zink

European Energy is building a great relationship with Sampension through several projects in Latvia

The company has noted that this is not the first project between itself and Sampension. European Energy already boasts more than 1GW of renewable projects in development in Latvia across the major renewable energy sectors like solar and wind.

European Energies regional leaders have also stated that the project exemplifies Latvia’s decarbonization ambitions through strategic partnerships that have become the norm across the global energy sector. This would mark the second time that European Energy has sold a stake in a major project to Sampension, following the Danish pension fund’s acquisition of 50% of the 148MW Ventspils project, also in Latvia.

“Investments in renewable energy are an important part of Sampension’s strategy to deliver stable, long-term returns to our members while contributing to the green transition. The Saldus project allows us to support the expansion of renewable energy in the Baltic region and add a diversified asset with both solar generation and energy storage to our portfolio.” – Torbjørn Lange, head of real estate and infrastructure at Sampension

While the new acquisition is a promising sign of the growth in Europe’s solar sector, solar PPAs have slumped following softer industrial demand in Europe. This points to projects like the Latvian solar one as an essential factor in accelerating the sector towards becoming the dominant energy resource on the continent.

Industry insiders have urged Europe to adopt a renewables-first approach to the energy sector

Several major European energy companies have urged Europe to adopt a renewables-first approach to fast-track the implementation of the new and exciting projects that the sector presents. The acquisition of a sizeable chunk of Latvia’s solar project is a perfect example of how the money invested in renewable energy can come full circle and be reinvested in other projects that drive the sector towards dominance over its fossil fuel cousins. Once the acquisition has been approved by the relevant government authorities, Latvia will become a major player in the solar power sector in Europe.