Modus Asset Management has secured €14m of financing from SEB Bank to expand its portfolio of solar power plants in Lithuania. The money will go to finance the acquisition of solar farms with a capacity of 22MW, currently in development in the districts of Varėna, Jonava, and Radviliškis.
SEB Bank provided the financing to companies owned by the Modus Remote Solar Fund I (MRSFI), a closed-end solar energy investment fund for informed investors managed by Modus Asset Management.
The total annual generation capacity of the plants planned to be acquired will be 26GWh. The solar plants will supply the electricity they generate to more than 30 companies in Lithuania.
According to Povilas Pečiulis, the chief executive of Modus Asset Management, under planned changes to Lithuanian legislation, businesses can still use net metering and sign long-term contracts for 5-7 years to supply electricity from solar parks.
Pečiulis added: "We're seeing a lot of interest from business customers since this is one of the most effective ways to ensure an attractive fixed electricity price and a supply of green energy. Expansion of the remote solar park we manage, which is the largest in Lithuania, will not only allow us to offer this service to an even wider circle of companies there but will also help strengthen the country's overall energy independence."
Artūras Vingrys, head of Corporate and Institutional Clients at SEB Bank, added: "Increasing the production of green electricity requires investments. Lithuania has committed by 2050 to meet 100% of its electricity needs from renewable energy sources and to export some of the energy it produces. Solar energy is projected to make up about 20% of all electricity generation, so it is vital to ensure the growth of renewable energy in the country. One of our bank's goals is to promote investment in renewable energy projects, and we believe that this acquisition by the fund management company Modus Asset Management will contribute to the country's green energy goals."
The solar parks planned for the acquisition will use state-of-the-art double-sided solar modules with both single-axis tracking and fixed-angle technology.
The acquisition will bring the total portfolio of remote solar power plants managed by Modus Asset Management to 76MW.