Modus Asset Management’s Post

We are thrilled to announce that Clean Energy Infrastructure Fund has secured EUR 20 million in debt financing from Swedbank to construct a 57 MW solar PV portfolio in Latvia.    The portfolio will generate 64 GWh of green electricity annually, covering needs of more than 30,000 households and solidifying its position as one of the largest solar power park portfolios in the country.   Thank you to Swedbank Latvija for their support and to our dedicated team for making this achievement possible.   #EnergyTransition #SolarPower #RenewableEnergy #Baltics

We are excited to share the recent milestones of the Clean Energy Infrastructure Fund, as we continue to capture attractive opportunities in the energy transition theme across Baltics and Poland. - Portfolio Expansion and Acquisitions The Fund has made significant progress, acquiring 7 portfolio companies to date, including two new acquisitions in Q2, enhancing our renewable energy generation capacity to 124 MW across Lithuania, Latvia, and Poland. During the first closing, the Fund has secured EUR 117m in investor commitments and boasts a well-defined pipeline of high-quality projects, ensuring clear visibility on the deployment of these funds. Looking ahead, in the current market environment we foresee opportunities to deploy at least double the amount already committed. - Emerging Opportunities The battery energy storage systems (BESS) market is gradually opening up in the Baltics and Poland, presenting compelling investment opportunities over the next 1-2 years. The Fund is mandated to invest in co-located BESS, positioning us to leverage synergies with our renewable energy generation portfolio and capitalize on these emerging opportunities. Stay tuned for more updates as we continue our work on accelerating the energy transition process across the region! #EnergyTransition #CleanEnergy #Renewables #Infrastructure 

Last week Modus Asset Management attended the Global Summit by Infrastructure Investor Network, the most prestigious gathering of the world's leading investors, managers and strategic partners in Europe with over 2 500 attendees from leading industry players.   Here are some key takeaways:   - The infrastructure asset class is maturing and experiencing tremendous growth worldwide - Traditional renewables, like solar PV and wind energy, remain the core strategies for most market players - Battery storage and other sectors related to energy transition are gaining more attention in specific markets with favorable conditions - CEE markets are increasingly seen as attractive investment destinations due to their appealing risk-return profiles - Deal activity is expected to pick up once a steady decrease in interest rates is evident, with geopolitics having only minimal influence on the energy transition industry Please get in touch if you would like to discuss and hear more about our views on these topics. 

Modus Asset Management and Šiaulių Bankas have agreed on EUR 21 million funding for the construction of a 16.5 MW wind farm in Jurbarkas district, Lithuania. The wind farm will have a total annual production capacity of 56 GWh and thereby be able to provide electricity to ∼17 000 households and save ∼6700 tonnes of CO2 emissions. The financing will be directed to Clean Energy Infrastructure Fund (CEIF), a closed-end investment fund managed by Modus Asset Management for informed investors. According to Povilas Peciulis, the CEO of Modus Asset Management, financing provided by Šiaulių Bankas for the wind farm contributes to the main objective of CEIF, which is to accelerate the region's green energy transformation by increasing local clean energy generation capacity and offering attractive institutional-level investment opportunities in the renewable energy asset class. Moreover, the agreement helps further enhance Lithuania's energy independence.

Last week Modus Asset Management attended Baltic M&A Outlook 2024 conference, organised by COBALT Legal. Our Investment Director Donatas Kundrotas joined a panel discussion: "From an investor's perspective: transactions in the energy and financial sectors", where he shared perspectives and insights on the Baltic market along with Andrius Pranckevicius, Karolis Pikūnas, Mihkel Torim and Julijus Grigaliunas, moderated by Elijus Burgis.      Key topics discussed:     ▪️ Overview of 2023 M&A deals and what to expect in 2024 – how macro environment and geopolitics come into play for energy deals  ▪️ Renewables market saturation in the Baltics – resilient growth ahead on the back of the existing assets and pipeline  ▪️ The attractiveness of energy transition asset class – more sophistication is required to manage risks and capture value in the sector    Please get in touch if you‘d like to discuss and hear more on our views on these topics. 

As we reflect on our achievements in 2023, we would like to share Modus Asset Management's progress with you. 👏 During the year, we secured EUR 97m in new investor commitments and distributed EUR 9.7m to our investors. Our operating solar PV portfolio grew to 155 MW, generating 85 GWh of electricity in 2023. This allowed us to cover the consumption of more than 30 thousand households and save over 10 thousand tonnes of CO2. 🌍 Further 124 MW of solar PV and onshore wind projects in Lithuania, Latvia and Poland were in construction phase. Moving forward, our aim remains the same – to deliver institutional grade investment opportunities to our investors and accelerate the region's transition to clean energy by investing in the Baltic States, Poland, and other Central European countries.

In the latest episode of the Verslo žinios podcast "Rinkos: kas man iš to?", Povilas Peciulis, the CEO of Modus Asset Management, shared his in-depth knowledge and insights on the evolving energy sector, which has seen some interesting transformations in recent years. In the podcast, Povilas Pečiulis discusses solar power plants, their payback, and what this means for the future of renewable energy investments. The podcast is available to all Verslo Žinios premium members.   https://lnkd.in/du8z8nbe

Modus Asset Management has secured a EUR 14 million loan from SEB, marking a strategic move to acquire additional solar PV plants portfolio in Lithuania. This investment focuses on operational solar PV plants with a total capacity of 22 MW located in Varėna, Jonava, and Radviliškis. Combined annual generation of 26 GWh allows to supply electricity to over 30 companies across Lithuania.   According to Povilas Peciulis, the CEO of Modus Asset Management, planned changes to Lithuanian laws will allow businesses to continue using net metering and make long-term contracts for 5–7 years to get electricity from solar parks. He states, "We observe strong interest from businesses as this is one of the most effective means to secure an attractive fixed electricity price and access a sustainable source of green energy."   https://lnkd.in/dGGNHwYf

🌍 Insightful Discussions at the Large Scale Solar CEE Conference! 🌞 Modus Asset Management is thrilled to share our recent participation in a panel discussion at the Large Scale Solar CEE Conference (Large Scale Solar Series), alongside insightful speakers exploring the M&A market in Central and Eastern Europe. Succeeding in a volatile environment, driven by high interest rates and fluctuating energy prices requires a resilient strategy with a clear long-term outlook. Our wealth of experience, ability to execute complex investment cases and strong partnerships with seasoned developers are some of the key success factors to capture attractive opportunities in the fast-paced solar market.  We strive to accelerate the region’s transition to clean energy and strengthen its independence through investments via our latest Clean Energy Infrastructure Fund, focusing on solar PV, onshore wind and co-located battery storage in Poland, Baltic States and other CEE countries. #LSSCEE #GreenEnergyJourney  

Modus Asset Management and Atelier Investment Management have agreed on a partnership, by which Atelier IM established Clean Energy Infrastructure Access Fund, a feeder fund with the sole purpose to invest in Modus AM’s Clean Energy Infrastructure Fund (CEIF).  The feeder fund has a minimum investment ticket of EUR 125,000, enabling access to CEIF for a wider base of informed investors. CEIF is an institutional level closed-end investment fund, whose main investors include the European Investment Fund and Baltic pension funds. CEIF has a target size of EUR 200 million and a hard cap of EUR 350 million.     Povilas Peciulis, CEO of Modus Asset Management, remarks: "In our effort to foster energy independence and sector growth, the alliance with Atelier Investment Management broadens investor access to the CEIF, traditionally reserved for large institutional investors."