The European Bank for Reconstruction and Development (EBRD) is taking a significant step towards enhancing Estonia's renewable energy infrastructure by lending €100 million to Enefit Green. This funding is dedicated to the development and operation of the 255 MW Sopi-Tootsi wind park, a project poised to elevate Estonia’s electricity generation capacity by up to 10 percent. The initiative is aligned with the European Union’s ambitious greening targets and aims to provide a robust response to the global energy crisis exacerbated by geopolitical tensions, particularly Russia's war on Ukraine.
Accelerating Estonia’s Green Transition with the Sopi-Tootsi Wind Park
Strategic Financing and Partnerships
The Sopi-Tootsi wind park project is backed by a comprehensive financing package. Alongside the EBRD’s contribution, the European Investment Bank has provided €180 million in parallel financing, complemented by additional funds from a commercial bank. This collaborative financial effort underscores the strategic importance of the wind park in bolstering Estonia’s renewable energy capacity and securing a stable energy supply.
Enefit Green’s Expanding Renewable Portfolio
Enefit Green, a leading renewable energy company in the Baltic states, has been an EBRD client since 2020. The company operates 587 MW of installed green capacity and 50 MW of heat capacity across the Baltic states, Finland, and Poland. Enefit Green’s growth trajectory has been impressive, especially following its partial privatisation and initial public offering in October 2021, which saw its shares listed on the Nasdaq Tallinn Stock Exchange. With nearly 64,000 investors, the company remains majority-owned by Eesti Energia, Estonia’s state-owned energy utility, while the EBRD retains a minority stake.
Impact and Future Goals
The Sopi-Tootsi wind park is a cornerstone of Estonia’s strategy to scale up renewable energy generation. The project is expected to save 480,000 tonnes of carbon dioxide emissions annually, making a substantial contribution to Estonia’s National Energy and Climate Plan. The plan aims to achieve 65 percent of national gross energy consumption and 100 percent of electricity consumption from renewable sources by 2030, with a long-term goal of climate neutrality by 2050. Enefit Green is pivotal in this transition, aiming to provide 2 GW of renewable energy by 2026 and 6 GW by 2030.
Leadership Insights
Grzegorz Zielinski, the EBRD’s Head of Energy Europe, highlighted the significance of the Sopi-Tootsi wind farm: “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.”
Echoing this sentiment, Veiko Räim, Member of the Management Board and Chief Financial Officer at Enefit Green, stated: “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.”
EBRD’s Commitment to Estonia
The EBRD stands as one of the leading institutional investors in Estonia, having invested nearly US$ 1 billion in 115 projects since it commenced operations in the country. This latest investment in the Sopi-Tootsi wind park exemplifies the Bank’s unwavering commitment to supporting Estonia’s sustainable energy transition and reinforcing its renewable energy infrastructure.
As Estonia continues to strive towards its ambitious climate goals, the Sopi-Tootsi wind park, bolstered by the EBRD’s substantial investment, marks a significant milestone in the nation’s journey towards a greener, more sustainable future.
