Gren Group

The loan has been provided to Gren Group to co-finance investments in essential energy infrastructure across the three Baltic countries. The investments include investments in essential energy infrastructure, including the expansion of existing district heating systems, building a renewable heat production facilities and investments in Battery Energy Storage Systems (BESS). 

The investments will strengthen energy infrastructure, increase system flexibility and contribute to the diversification of the regional energy mix, thereby enhancing energy resilience in Estonia, Latvia and Lithuania. 

The loan forms part of a broader EUR 1.15 billion financing package for Gren Group’s Baltic operations, involving a diverse group of infrastructure lenders, as well as local, European, and global financial institutions. 

The loan agreement has an option to increase NIB’s participation by an additional EUR 15 million.   

Productivity: 

•  Investments to expand and refurbish district‑heating and grid infrastructure, alongside complementary generation projects, will strengthen distribution networks, improve energy efficiency, and extend the reach of district‑heating systems. 
• The Biomass Plant in Riga will add further renewable energy capacity of 50 MW to the regional energy system. This will contribute to the diversification of energy generation in the Baltics, enhance heat delivery security, support the gradual reduction of fossil-fuel-based heat production and increase regulated heat production earnings. 
• The BESS investments will provide operational flexibility, as storage systems are becoming increasingly important with the growth of the share of variable renewable energy in the Baltics.  

Environment:

The programme focuses on investments that support the energy transition and contribute to climate change mitigation through a mix of technologies with differing environmental profiles.  

Key projects currently underway include battery energy storage systems which enhance energy system flexibility and support the integration of renewable energy, as well as a biomass‑based heating plant, with biomass sourcing structured to meet EU sustainability requirements and relying primarily on certified residues and by‑products.  

In addition, the programme includes investments in the expansion, upgrading and maintenance of district heating infrastructure, supporting system reliability and flexibility. 

Individual disbursements remain subject to sustainability policy checks, and supply-chain due diligence. The proposed structure allows the support of a pipeline of investments while ensuring that each project remains aligned with the Bank’s Mandate.