The wind farm “Augstkalni” planned by the project developer SIA WPR2 will be located in Launkalne and Drusti Counties, Smiltene District, and will be one of the largest in the country, significantly increasing the proportion of the total installed capacity of wind energy in Latvia.
The financing provided by the banks is EUR 92 million, co-financed in equal shares by Luminor Bank, the European Bank for Reconstruction and Development and the Nordic Investment Bank.
An important project for the environment and the economy
This is one of the few large-scale wind farm projects that has received funding from local and institutional banks, creating the legal practice of securing and receiving financing for renewable energy projects in Latvia.
With the receipt of funding, construction works on the wind farm will begin. The wind farm will consist of 16 new high-power wind turbines with a total installed rated capacity of 112 MW, which will annually produce enough energy to supply more than 80,000 households. In addition, the operation of the wind farm will reduce CO₂ emissions by about 55,000 tons.
The project has successfully completed the environmental impact assessment process, which confirms its compliance with the environmental protection requirements. The wind farm turbines are planned to be commissioned in early 2027.
TEGOS team and contribution
The ambition of the project and its multifaceted nature required an interdisciplinary approach – lawyers from TEGOS Energy as well as Banking & Financial Services practice groups worked on the project. Experts of the Energy practice group carried out the legal due diligence of the wind farm project, as well as ensured that the financing documents adequately reflect the legal framework for the future construction and operation of the wind farm and the conditions for receiving financing, while the lawyers of the Banking & Financial Services practice group advised on the legal aspects of the terms of the loan agreement, as well as structured and prepared collateral documents.
Under the leadership of partners Agnese Hartpenga (Energy Practice Group) and Inese Hazenfusa (Banking and Financial Law Practice Group), senior associate Mārtiņš Galzons and associates Karīna Narņicka – Čumakova and Elīna Lesničenoka worked on the project.
Clifford Chance’s Polish office advised on the English law issues of the deal.
