The two funds invest in solar parks operating in Poland and Lithuania. The proceeds from investors will be used for the acquisition of solar parks. The funds have already formed a portfolio of over 184 MW. 40 MW of which comprise already operational solar parks, while the remaining 144 MW will be completed and start producing energy in 2023.
Modus Asset Management CEO Povilas Pečiulis stresses that the renewable energy industry in Poland and Lithuania has undergone major transformations in recent years which have also dictated the terms for fund activities. “Renewable energy sector was affected by the pandemic-related rise in energy and raw material prices, which Russia’s war against Ukraine has further exacerbated. Inflation and interest rates, which rose to unprecedented highs over the last decade, have also had an impact, as have regulatory changes that imposed a temporary caps on electricity prices,” Pečiulis says.
He adds that succeeding in such a rapidly changing environment requires a high level of professionalism in investment and risk management. “It was the investments these funds have made along with the expertise of our team that has allowed us to broaden our investor base and attract significant additional capital in the current environment,” the CEO of Modus Asset Management notes.
Looking ahead, he sees attractive investment opportunities in the Baltic and Polish renewable energy markets, though there are unavoidable market challenges. “The main problems for our region’s power generation industry are insufficient local generation and production of energy from sources that pollute the environment. We have a clear solution for tackling these problems: rapid expansion of solar and wind generation over the next 5-10 years. For that to happen, a favorable and stable regulatory environment is needed, so most investments will go to countries that ensure such conditions for investors,” Pečiulis explains.
Modus Poland Solar Fund I, which has operated since 2020, raised €12.1 million from more than 30 investors for its third closing in January 2023. That boosted the total commitments of the fund’s investors to €36.6 million. The Modus Remote Solar Fund I raised €7.4 million from more than 20 investors for its second closing in November 2022. Total commitments by the investors of that fund, which began its activities in 2021, thus rose to €15 million.
The Modus Poland Solar Fund I (MPSFI) is an investment fund intended for informed investors, which invests in solar parks operating in Poland. Its management team has been active in the Polish renewable energy market since 2017 and has closed some of the market’s first large solar park deals with world renowned institutional investors.
The Modus Remote Solar Fund I (MRSFI) is an investment fund intended for informed investors who invest in solar parks operating in Lithuania whose generated electricity is sold to business entities.