Latvia SW Power Energy Storage Project Secures Over EUR 3 Million Loan

en.Wedoany.com Reported - On November 9, SW Power SIA, the Latvian project company under Swedish energy storage developer Byhmgard, signed a project loan agreement exceeding EUR 3 million with local Signet Bank to finance the construction of a 15 MW/30 MWh battery energy storage station in Riga. The project's total financing requirement is approximately EUR 6.1 million, with bank loans covering about 50%, and the remaining funds to be addressed through intra-group equipment financing and equity contribution arrangements. The project is scheduled to enter commercial operation in the second quarter of 2027.

Under the signing arrangement, the Signet Bank loan is secured by the energy storage station and the project company's assets, with disbursements made in tranches during construction based on actual costs incurred, and monthly repayments commencing from autumn 2027. The remaining approximately 50% of financing is to be provided by Byhmgard Invest AB primarily through the purchase of battery systems on credit and contribution in kind to the project company, with the balance of the non-bank financing portion, approximately 30%, to be supplemented by cash contribution. The equipment procurement credit arrangement is guaranteed and supported by Middelborg AS and Gimle Invest AS.

The project is located on Ata Street in Riga, with a grid connection capacity of 14.99 MW, equipped with 6 liquid-cooled lithium iron phosphate battery containers, an energy storage capacity of approximately 30 MWh, and a continuous discharge duration of approximately 2 hours. The project company has obtained land use rights and environmental approval decisions, and has completed the signing of the grid connection agreement. The engineering, procurement, and construction (EPC) contractor is Latvijas Energoceltnieks, with contract-related engineering costs of approximately EUR 600,000; operations and maintenance services are undertaken by Alstra Energy, with estimated annual costs of approximately EUR 70,000.

According to the project implementation schedule, the construction permit is expected to be obtained in mid-November 2026. After completing permit registration and issuing the formal notice to proceed, the EPC contractor will commence construction within the contract scope. The battery system is expected to arrive in Riga in spring 2027, and the station is scheduled to enter commercial operation in the second quarter of 2027. Operations and maintenance costs will begin to be recognized after commercial operation commences.

In the financing return calculation, Byhmgard uses Nord Pool day-ahead and intraday electricity market trading as the revenue basis, assuming one full charge-discharge cycle per day, and taking into account equipment efficiency, capacity degradation, availability, and electricity price variations, the project is expected to generate approximately EUR 20 million in electricity price arbitrage revenue during the 2027–2047 calculation period. The company also plans to apply after commissioning to participate in the balancing and capacity services market of Latvian transmission system operator AST, which is expected to potentially generate additional revenue of approximately EUR 33 million. The combined potential scale of the two revenue streams is approximately EUR 53 million, both being forecast values before deducting operating costs, and the bank loan repayment calculation is based on the base electricity price arbitrage revenue.