Estonian renewable energy producer Enefit Green has inked a €180 million (€1 = $1.0736) loan agreement with the European Investment Bank (EIB) on Thursday, to finance its ongoing investment program. The contract spans 12 years and will aid the construction of the Sopi-Tootsi wind farm, the largest of its kind in Estonia.
The Sopi-Tootsi wind farm, set to be completed in 2025, has a capacity of 255 MW and is expected to cover about 40% of the annual electricity consumption of Estonian households. The project is part of Estonia's largest single investment in onshore wind energy to date and will contribute significantly to both Estonia’s National Energy and Climate Plans and the REPowerEU Plan.
Enefit Green's Chief Financial Officer Veiko Räim expressed satisfaction about the strategic partnership with EIB, stating that the loan agreement is an important part of financing their investment program. He added that Enefit Green has a clear roadmap to quadruple production capacity by 2026 to increase the supply of affordable green energy and improve energy security.
EIB Vice-President Thomas Östros, responsible for EIB business in Estonia, said that the new wind farm will boost national wind production by about 80% while reducing the country's strong dependency on oil shale. He also noted that this loan agreement supports both climate action and cohesion, contributing to Estonia's transition into a low-carbon economy on its path toward climate neutrality.
In addition to the Sopi-Tootsi project, Enefit Green is currently constructing five wind and three solar farms in Estonia, Lithuania, Poland, and Finland with a total capacity of 608 MW. In 2023 alone, Purtse hybrid wind and solar farm in Estonia and the Zambrow solar farm in Poland with a total capacity of 62MW have been completed and put into operation. Over the next six months, several other projects are expected to be completed, including wind farms in Lithuania and Finland, and solar farms in Poland and Estonia.
Enefit Green is one of the leading diversified renewable energy producers in the Baltic Sea (NYSE:SE) area, operating various facilities including wind farms, cogeneration plants, solar farms, a pellet plant, and a hydroelectric plant across several countries. As of the end of 2022, the company had a total installed electricity production capacity of 457 MW and a total installed heat production capacity of 81 MW.
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