09/20/2023

European Investment Bank commits €180 million in financing to support construction of Estonia's largest wind farm

The project is Estonia’s largest single investment in onshore wind energy to date / The wind farm will contribute to Estonia’s National Energy and Climate Plans and to the REPowerEU Plan / The output of the farm will cover 8.5% of the entire country’s electricity consumption and 40% of the electricity needs of household consumers

Enefit Green and the European Investment Bank (EIB) have signed a €180 million financing agreement to support the construction of the Sopi-Tootsi onshore wind farm in Estonia. This will support Estonia’s path towards decarbonisation and energy independence. The loan period is 12 years.

“Enefit Green is pleased to start a strategic partnership with the EIB. The loan agreement signed today is an important part of financing the ongoing investment programme,” commented Veiko Räim, Member of the Board and Chief Financial Officer of Enefit Green.

“Enefit Green has a clear roadmap to quadruple production capacity by 2026 to increase the supply of affordable green energy and improve energy security. We are grateful for the trust and support that the EIB is showing towards our growth ambitions. This loan agreement not only provides us with the necessary financial resources to fuel our project, but it also reaffirms our common commitment to creating a cleaner, more sustainable future for generations to come.”

“The wind farm will increase national wind production by about 80% while reducing the country’s strong dependency on oil shale,” said EIB Vice-President Thomas Östros, responsible for EIB business in Estonia. “The EU bank is delighted to sign this important loan agreement to support both climate action and cohesion, contributing to the transformation of Estonia into a low-carbon economy on the country's path toward climate neutrality.”

The loan will help finance the design, construction and operation of the most modern and powerful Sopi-Tootsi wind energy facility in Estonia with a total nominal capacity of 255 megawatts. The projects include 38 wind turbines and the associated civil and electrical infrastructure. They will be developed in the southwest of Estonia, approximately 30 km from Pärnu Bay and the city of Pärnu.

The new installation will provide green energy equal to the average annual electricity consumption of more than 197 000 households and will be mostly located in cohesion regions, where per capita income is lower than the EU average, underlining the EIB’s commitment to equitable growth and the convergence of living standards. The investment will boost economic growth and employment, and forms part of the EIB’s dedicated package of support to REPowerEU — the EU plan to eliminate dependence on fossil fuel imports.