The European Bank for Reconstruction and Development (EBRD) is lending €100 million to Enefit Green to support the construction and operation of the 255 MW Sopi-Tootsi wind park in Estonia.
This significant investment aims to boost Estonia’s renewable energy capacity and contribute to the country’s green energy targets set by the European Union (EU).
Project Overview and Impact
The Sopi-Tootsi wind park is set to increase Estonia’s electricity generation capacity by up to 10%. This new wind park will play a crucial role in Estonia’s efforts to meet ambitious EU greening targets.
Alongside the EBRD’s loan, the project has received parallel financing of €180 million from the European Investment Bank, with additional funds provided by a commercial bank.
Once operational, the wind park will save 480,000 tonnes of carbon dioxide emissions annually.
Enefit Green’s Role and Expansion
Enefit Green, one of the largest renewable energy companies in the Baltic states, has been a client of the EBRD since 2020.
The company currently owns and operates 587 MW of installed green capacity and 50 MW of heat capacity across the Baltic states, Finland, and Poland.
Following its partial privatization through an initial public offering in October 2021, Enefit Green’s shares are listed on the Nasdaq Tallinn Stock Exchange, with nearly 64,000 investors.
Eesti Energia, the Estonian state-owned energy utility, remains the majority owner, while the EBRD holds a minority stake.
Strategic Importance Amid Global Energy Crisis
The Sopi-Tootsi project is essential to Estonia’s strategy to increase renewable energy generation, especially in light of the global energy crisis exacerbated by Russia’s war on Ukraine.
This crisis has underscored the necessity of a stable and secure energy supply. Accelerating the deployment of renewable energy is the sustainable path forward to replace fossil fuels and achieve energy independence.
Estonia’s Renewable Energy Goals
Estonia is one of the EU’s most carbon-intensive economies, with oil shale comprising about 57% of the country’s energy mix.
Estonia’s National Energy and Climate Plan aims to have renewable energy constitute 65% of national gross energy consumption and 100% of electricity consumption by 2030.
The country is targeting climate neutrality by 2050, and Enefit Green is pivotal to this goal, aiming to provide 2 GW of renewable energy by 2026 and 6 GW by 2030.
Statements from Key Figures
Grzegorz Zielinski, the EBRD’s Head of Energy Europe, remarked, “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, making this investment 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, added, “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 progressing 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.”
EBRD’s Investment in Estonia
The EBRD is one of the leading institutional investors in Estonia. Since beginning operations in the country, the Bank has invested almost US$ 1 billion in 115 projects, demonstrating a strong commitment to supporting Estonia’s transition to a greener, more sustainable energy future.