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Swedbank Commits €85m Long‑term Facility to Finance BREP's Baltic Hybrid Solar‑storage Project
•February 16, 2026
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Why It Matters
The project demonstrates how hybrid solar‑storage and long‑term PPAs can accelerate renewable integration and grid reliability in the Baltics, setting a precedent for future European energy markets.
Key Takeaways
- •77.5 MWp solar plant with 55 MW/250 MWh battery.
- •Estonia's largest solar‑plus‑storage hybrid.
- •Operation slated Q3‑Q4 2026, delivering FCR, aFRR, mFRR.
- •First Baltic flexibility and power purchase agreement signed.
- •Swedbank provides €85 m financing for solar portfolio.
Pulse Analysis
Hybrid solar‑storage projects are becoming a cornerstone of Europe’s clean‑energy transition, and the Kirikmäe installation marks a significant milestone for the Baltic region. By pairing 77.5 MWp of photovoltaic capacity with a 55 MW/250 MWh battery, the plant can not only generate power but also provide essential ancillary services—frequency containment reserve (FCR), automatic frequency restoration reserve (aFRR), and manual frequency restoration reserve (mFRR). These capabilities help balance supply and demand, reduce reliance on fossil‑fuel peakers, and enhance overall grid stability, addressing a long‑standing challenge for smaller, interdependent markets like Estonia’s.
The financing structure underscores the growing appetite for innovative renewable assets among institutional investors. Swedbank’s €85 million long‑term facility not only refinances the existing solar portfolio but also funds the battery construction and offers ancillary credit lines, reducing capital risk for developers. Coupled with the first flexibility and power purchase agreement (FPPA) in the Baltics, the deal provides a predictable revenue stream for the hybrid plant and signals confidence in long‑term contracts that reward both generation and storage services. This alignment of capital, technology, and contractual certainty is likely to attract further private‑asset investment across the region.
Looking ahead, the Kirikmäe hybrid could serve as a template for scaling similar projects throughout Northern and Eastern Europe. Policymakers are increasingly recognizing the value of storage‑enabled renewables in meeting EU climate targets and grid reliability standards. As battery costs continue to decline and regulatory frameworks evolve to reward flexibility, more developers may pursue hybrid configurations, leveraging the proven financial and operational model demonstrated by BREP, Mirova, and Evecon. The success of this project may accelerate the region’s transition to a more resilient, low‑carbon electricity system.
Deal Summary
Swedbank has pledged an approximately €85 million long‑term financing facility to support the Baltic hybrid solar‑storage project launched by BREP, Mirova and Evecon. The facility will refinance the solar portfolio, fund the construction of a 55 MW/250 MWh battery system, and provide ancillary credit lines. The project, Estonia’s largest solar‑plus‑storage hybrid, is slated for operation in Q3‑Q4 2026.
Article
Source: reNEWS
BREP launches Baltic hybrid solar‑storage project
16 February 2026 08:27
Mirova and Evecon’s Baltic Renewable Energy Platform has launched Estonia’s largest solar‑plus‑storage hybrid project at the 77.5 MWp Kirikmäe site. The plant is being enhanced with a 55 MW/250 MWh battery system now under construction by EPC contractor WiSo Engineering with equipment supplied by Huawei, Mirova and Evecon said. The project is expected to enter operation in Q3–Q4 2026 and will provide grid‑stability services such as FCR, aFRR and mFRR, according to the partners.
BREP has also signed the first flexibility and power purchase agreement in the Baltics with Pure Energy covering output from its Kirikmäe, Imavere and Lohu Mets sites.
Swedbank has committed to a new c. €85 m long‑term facility to refinance the solar portfolio, build the Kirikmäe battery and provide ancillary credit lines.
“The construction of 55 MW BESS capacity to build the largest Baltic hybrid plant, combined with the signing of this first long‑term FPPA illustrates how innovation can accelerate the integration of renewables and storage into Europe’s power systems.”
— Raphaël Lance, global head of private assets at Mirova
“By backing pioneering hybrid infrastructures, Mirova is helping reshape the way clean energy is produced, stored and valued.”
— Raphaël Lance
“The hybridisation of Kirikmäe Solar PV and the implementation of the FPPA demonstrate how innovative structures, strong partnerships and high technical standards can shape the future of the Estonian electricity system.”
— Karl‑Joonatan Kvell, chief executive officer of Evecon
“Signing the first FPPA of this nature in the Baltics marks the start of a long‑term partnership with BREP, MET5 and Evecon.”
— Servet Akgün, founder of Pure Energy
“Swedbank is pleased to continue its partnership with MET5 and Evecon by supporting this next phase of BREP’s development.”
— Mihkel Utt, head of large corporates at Swedbank Estonia
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