SUSI Partners, through SETF, has launched a renewables platform in Poland together with Polish energy-as-a-service company Luneos. LGE, which was set up in late 2021, aims to build a sizeable, diversified portfolio of onshore wind and solar PV assets to support the transition of the Polish power market away from its heavy reliance on coal-based generation, benefitting from comparatively low costs of renewables in times of rising carbon prices.
Leveraging on a pre-existing long-term partnership, SUSI will work closely with Luneos’ management team in leading the execution of LGE’s business plan and its day-to-day operations, ensuring that LGE can draw on intricate knowledge of the Polish energy market and renewables dynamics. The two parties have been working together since 2018, with SUSI’s credit platform financing various energy efficiency measures and other clean energy solutions implemented by Luneos. LGE expands that collaboration into the Polish renewables market, in which Luneos’ management, having previously led Poland’s largest private energy group Polenergia, has a long-standing track record.
Today, Poland relies predominantly on coal-fuelled power generation, which was responsible for close to 80% of total electricity generation in 2021. However, with carbon emission prices and ambitions to reduce greenhouse gas emissions rising, the Polish energy sector has started to transition towards clean and more affordable energy sources. Together with increasing energy demand on the back of continuous economic growth, these developments have made Poland an attractive market for investment in renewable energy.
Accordingly, renewable energy generation capacity in Poland has grown by almost 25% over the last decade, a trend that is expected to accelerate in the future, with the Polish Ministry of Climate and Environment pursuing ambitious targets in the area, which both SUSI and Luneos want to support with the launch of LGE.
SETF was launched in 2020 as SUSI’s flagship equity fund. The fund has an evergreen structure and invests in sustainable energy infrastructure with a focus on OECD countries, covering the wide spectrum of investment opportunities arising from the energy transition.