Thursday, June 13, 2024
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EBRD lends 22 million euros to support solar energy in Estonia

The European Bank for Reconstruction and Development (EBRD) is supporting the development of solar energy in Estonia by lending 22 million euros to KC Solar2 to finance the construction of a 45-megawatts (MW) solar park in the town of Kehra. The EBRD loan benefits from first-loss risk cover by the European Union (EU) under its InvestEU programme.

In line with the EU’s strategic renewable energy goals, Estonia has an ambitious target of ensuring that 65 per cent of its final energy consumption comes from renewable energy by 2030. It also seeks to have 100 per cent of its electricity generated from renewables by 2030. Consequently, developing Estonia’s solar energy potential is critical to supporting these goals and safeguarding Estonia’s energy security.

Once fully operational, the Pihlaka solar farm is expected to generate 41,230 megawatt-hours (MWh) annually to be sold on the open market. This will not only make a significant contribution to greening Estonia’s electricity grid but also make it more competitive.

“This is one of the first renewable energy projects in the Baltic countries to be structured on a full merchant basis,” said Tomas Kairys, EBRD Head of the Baltic States. “It paves the way for a more competitive and liquid electricity market in Estonia and demonstrates the commercial viability of renewable projects in Estonia for other developers and financiers, with the potential to unlock much more investment in the renewables space in the region.”

KC Solar2 is 100 per cent owned by KC Energy, an Estonian renewable energy developer, which owns and operates nearly 83 MW of solar farms across the country and has more than 500 MW of solar and wind farms in the pipeline, as well as storage solutions for managing renewable energy.

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