The European Bank for Reconstruction and Development (EBRD) is lending €100 million to Enefit Green for the construction and operation of the 255 MW Sopi-Tootsi wind park in Estonia. The new wind park will increase the country’s electricity generation capacity by up to 10 percent as it makes strides to meet ambitious European Union (EU) greening targets. Parallel financing of €180 million has been provided by the European Investment Bank and additional funding comes from a commercial bank.
Enefit Green is one of the largest renewable energy companies in the Baltic states and has been a client of the EBRD since 2020. The company owns and operates 587 MW of installed green capacity and 50 MW of heat capacity in the Baltic states, Finland and Poland. Following a partial privatisation through an initial public offering in October 2021, the company’s shares are listed on the Nasdaq Tallinn Stock Exchange and held by nearly 64,000 investors. It remains majority-owned by Eesti Energia, the Estonian state-owned energy utility, while the EBRD holds a minority stake.
The Sopi-Tootsi project is integral to Estonia’s strategy to scale up renewable energy generation in light of the global energy crisis caused by Russia’s war on Ukraine, which has highlighted the need for a stable, secure energy supply. Accelerating the rollout of renewable energy is the only sustainable path to replace fossil fuels and reach energy independence.
Estonia is one of the EU’s most carbon-intensive economies, with oil shale making up around 57 percent of the country’s energy mix. Estonia’s National Energy and Climate Plan is to have renewable energy making up 65 percent of national gross energy consumption and 100 percent of electricity consumption by 2030. The country is aiming for climate neutrality by 2050 and Enefit Green has a key role to play with its aim to provide 2 GW of renewable energy by 2026 and 6 GW by 2030.
Grzegorz Zielinski, the EBRD’s Head of Energy Europe, said: “We are pleased to strengthen our long-standing partnership with Enefit Green and further support its ambitious green investment strategy. The Sopi-Tootsi wind farm will be Estonia’s largest, so the investment is strategically important to accelerate the country’s long-term green transition and reduce its reliance on oil shale. We look forward to building on our past achievements and sustaining this momentum for renewables.”
Veiko Räim, Member of the Management Board and Chief Financial Officer at Enefit Green, said: “We are delighted with our ongoing partnership with the EBRD and deeply value the trust and support it has provided towards our company’s growth. In 2020, its support enabled us to expand our operations into Poland and, with this new funding, we are advancing the construction of Estonia’s largest wind park. Our construction activities are advancing swiftly at several development sites, particularly the Sopi-Tootsi wind park, which is our largest project. With over half of the 38 turbines installed, the project remains on track, underscoring our commitment to advancing Estonia’s green transition and achieving our strategic goals.”
The EBRD is among the leading institutional investors in Estonia. Since the start of its operations in the country, the Bank has invested almost US$ 1 billion in 115 projects.
