The insurance technology company Balcia has invested 1 million euros in Merito Sustainable Energy FUND I, an investment fund managed by Merito Partners (Merito) to develop nine solar power plants across Latvia. Balcia has previously also invested in renewable energy sector.
The 20 million euro investment fund was set up to develop an ambitious project by local investors and entrepreneurs and to build nine solar power plants in Latvia. The total capacity of all solar parks is expected to exceed 66 MW.
“The solar energy projects implemented in Latvia in recent years show that solar energy has great potential, but we are still significantly behind other EU countries in solar energy generation. With this investment, we will help to promote the development of local infrastructure for green energy, while strengthening the country’s energy independence with home-grown capital. Balcia is the first institutional investor in the project and our investment is an essential part of the capital needed to make this sustainability project a reality,” says Jānis Lucaus, the CEO at Balcia.
The solar power project will be one of the most ambitious green infrastructure projects in the next two years in Latvia. At least seven plants with a total capacity of 55 MW are expected to be commissioned in Latvia’s regions by the end of this year, and the remaining two in first half of 2024. The new solar power plants will generate at least 70,000 MWh of electricity per year, supplying more than 35,000 households across Latvia with green energy.
“Investments by private investors have demonstrated the potential for green and sustainable investment returns, and we are pleased that experienced investors such as Balcia believe in it. We will continue to work to attract financing to provide clean energy and promote energy independence in Latvia. Using investors’ equity and bank co-financing, the first solar power plants will be commissioned in Zilupe and Valmiera, and in the second half of the year – in five more places in Latvia.” informs Mikus Janvars, managing partner and co-founder at Merito Partners.
Almost 40 Latvian investors have invested in the fund so far. Fundraising continues actively, with new investors joining Merito Sustainable Energy Fund I every month. Overall, Merito will invest €50 million in Latvia’s economy through equity investment and bank co-financing for the construction of nine solar power plants.
Balcia is an insurance technology company with local capital and experience in international markets. In 2020, the company underwent a major transformation, introducing a new business strategy and brand identity, positioning itself as an insurer focused on new, modern solutions and automation innovations, including becoming the first online insurer to offer the option to subscribe, change or cancel the insurance. In 2022, the Balcia brand had a successful launch in the Latvian market, thus expanding its geographical reach in Europe.