Estonia. Enefit Green AS

Date of agreement:06 Jan 2023
Country:Estonia
Customer:Enefit Green AS
Amount in EUR:EUR 100 million
Maturity:12 years
NACE sector / loan type:Production and distribution of electricity

This loan contributes to climate change mitigation: 100%

Project

The loan has been provided for financing up to 50% of the following three projects in Lithuania, Estonia and Finland during the years 2023 to 2025. All three projects are eligible for financing from NIB Environmental Bond proceeds.

The projects are:
The Kelme I Wind farm in Lithuania is expected to the completed by the end of the first quarter of 2025. The total project cost is approximately EUR 134 million excluding the needed grid connection infrastructure.

The Tolpanvaara wind farm in Finland is planned for completion by the end of the first quarter of 2024. The total project cost is approximately EUR 91 million.

The Purtse Photovoltaic Park in Estonia is scheduled for completion in by mid-2023. The total project cost is approximately EUR 20 million.

Enefit Green AS is a renewable energy producer in the Baltic Sea region. The group produces primarily electricity and heat from wind, as well as municipal waste, biomass, solar and hydroelectric sources in Estonia, Latvia, Lithuania, and Poland. Enefit Green AS is a subsidiary of Eesti Energia AS, which is an integrated utility company fully owned by the State of Estonia. On 21 October 2021, Enefit Green AS completed an initial public offering and the listing of its shares on the Nasdaq Baltic Stock Exchanges, resulting in a free float of about 23% and Eesti Energia AS retaining 77% ownership of the company.

Fulfilment of NIB's mandate

Productivity
The Kelme I Wind farm will add up to 80 MW of new energy generation capacity in Lithuania. Considering the availability of storing and balancing capacities, as well as security of supply, Lithuania has little local base load capacity. The country is therefore very dependent on the electricity imported via the interconnections from Sweden, Latvia and Poland.

The Tolpanvaara wind farm will add 72 MW of new energy generation capacity in Finland. According to information provided by Finnish Wind Power Association, more than 4 GW of wind power going is expected to be connected to the grid by 2025. Given a lack of transmission and balancing capacity, such as batteries and power-to-x production, there is a risk of wind cannibalisation effects in Finland.

The Purtse Photovoltaic Park is expected to add a generation capacity of 32 MW in Estonia. Given the electricity deficit in the Baltics, the project brings an element of security of supply and adds to the energy mix during the summers.

Environment
The total added renewable power generation capacity of the three renewable energy projects is 189 MW, and the estimated annual power generation, with a probability of 90%, is approximately 468 GWh/a. This equals to around 157,000 tonnes of avoided CO2 emissions a year.

Expected total impact from the three projects:

  • Renewable power generation, 468 GWh/a
  • Added renewable power generation capacity, 189 MW

Sustainability summary

The projects are assessed to not cause any significant negative environmental or social impacts.

Press release
06.01.2023

NIB funds Enefit Green’s renewable energy projects in Estonia, Finland and Lithuania

Press release

Põhjamaade Investeerimispank rahastab Enefit Greeni taastuvelektrijaamade projekte Eestis, Soomes ja Leedus