EIB invests €180m in Estonia’s largest wind farm

In what the project developers are touting as Estonia’s largest single investment in onshore wind energy to date, the European Investment Bank (EIB) has announced €180 million ($192 million) to support the construction of the Sopi-Tootsi onshore wind farm.

The output of the farm, registering at 225MW, will cover 8.5% of the entire country’s electricity consumption and 40% of the electricity needs of household consumers.

The financing agreement was signed between the EIB and Estonian renewable energy company Enefit Green with a loan period of 12 years.

“Enefit Green is pleased to start a strategic partnership with the EIB. The loan agreement (…) 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."

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The loan will help finance the design, construction and operation of the wind energy facility, which includes 38 wind turbines and the associated civil and electrical infrastructure. They will be developed in Estonia's southwest, approximately 30km 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.

The investment is hoped to boost economic growth and employment, and forms part of the EIB’s package of support to REPowerEU.

“The wind farm will increase national wind production by about 80% while reducing the country’s strong dependency on oil shale,” added 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.”