Jānis Rībens, Capitalica Asset Management Investor relations project manager in Latvia
Ten years ago, solar energy in Latvia was considered a vision for the future. Today, it has become a daily reality, reshaping not only the energy sector but also the investment environment. Renewable energy capacity in the Baltics is expanding faster than ever before. Over the past three years, solar and wind capacity in the region has increased by more than 35%, and in Latvia alone, solar generation doubled in 2024, reaching more than 300 GWh.
These figures confirm that the transition to clean energy is no longer an experimental approach but a significant part of the economy – one that also sets the direction for real estate development. Demand for energy-efficient buildings is increasing, investors are reassessing risks, and sustainability is shifting from a “nice-to-have” to a mandatory rule of the game.
From idea to game changer – clean energy enters real estate
Renewable energy is no longer just a future concept – today it is a powerful driving force in the Baltic economy. In recent years, both solar and wind capacity in the region have grown significantly, with an increasing number of hybrid parks that combine different energy sources and storage solutions.
A strong example is the recent announcement of investments by the European Bank for Reconstruction and Development (EBRD) and Sunly in Latvia, where hybrid solar parks with battery storage systems are planned. These projects will not only ensure cleaner energy generation but also greater supply stability. Such developments reduce dependence on fossil fuels while providing long-term benefits for the business environment: lowering energy price volatility, enhancing corporate reputation, and increasing demand for energy-efficient, climate-resilient real estate. As a result, the integration of clean energy has become one of the main factors influencing investor decisions and defining which projects will remain competitive in the future.
Sustainability as a new competitive edge
In Latvia, solar capacity more than doubled within a year. This is not only an environmental achievement but also a signal of a broader investment shift. At the same time, new EU sustainability reporting regulations are raising the bar for what qualifies as a sustainable asset.
For the real estate sector, this means that ESG principles are no longer optional – they are prerequisites for competitiveness. Investors are increasingly evaluating whether projects are energy-efficient, sustainable, and future-proof. Renewable energy projects and sustainable urban development are becoming inseparable.
Solar parks with storage capacity lay the foundation for a stable energy infrastructure, and similar principles should be applied in building development. At Capitalica Asset Management, we put this approach into practice – the VERDE office complex in Riga is a clear example of how A-class energy efficiency, BREEAM Excellent certification, thoughtful design, and tenant comfort can be combined with long-term investor value.
From solar park to climate-resilient city
Integrating clean energy into real estate means much more than placing solar panels on rooftops. It includes smart management systems that optimize heating, cooling, and lighting; energy storage that ensures independence during peak hours; rainwater collection for green areas and technical needs; as well as urban solutions such as rooftop gardens, landscaped areas, and convenient mobility options. These elements not only reduce costs and CO₂ emissions but also increase long-term property attractiveness.
The involvement of institutional investors such as the EBRD and the European Investment Bank in renewable energy projects sends a clear signal to the international investment community: the Baltics are developing sustainably and purposefully. Developers and investors who integrate ESG principles into their strategies today will be a step ahead tomorrow. Sustainable projects reduce risks, ensure long-term returns, and strengthen the region’s profile in the global market.
The strategic advantage of acting early
The sooner we start, the greater the opportunity to preserve and grow long-term value. Developing energy-efficient and climate-resilient projects is not only a matter of environmental responsibility. It is a strategic advantage that protects against future cost increases, enhances asset attractiveness, and secures stable income flows. By investing today, we not only strengthen our business but also build a safer, more resilient environment for future generations.
