The EBRD and the EU support the construction of the Pihlaka photovoltaic farm in Estonia

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  The EBRD lends EUR 22 million for the Estonian KC Solar2 OAT
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  Loan with EU support, will finance the construction of a photovoltaic park with a capacity of 45 MW
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  An investment supporting the goals of the country’s ecological transformation and energy security

The European Bank for Reconstruction and Development (EBRD) is supporting the development of solar energy in Estonia by lending EUR 22 million to KC Solar2 OÜ to finance the construction of a 45 MW photovoltaic park in the city of Kehra. The EBRD loan is subject to first loss risk by the European Union (EU) under the InvestEU program.

In line with the EU’s strategic renewable energy targets, Estonia has set an ambitious target to ensure that 65% of its final energy consumption comes from renewable energy by 2030. It also aims to produce 100% of its electricity from renewable sources by 2030. Therefore, developing Estonia’s solar energy potential is crucial to supporting these goals and protecting Estonia’s energy security.

Once fully operational, the Pihlaka solar farm is expected to generate 41,230 MWh per year and will be sold on the open market. This will not only make a significant contribution to the greening of Estonia’s electricity grid, but will also increase its competitiveness.

Tomas Kairys, EBRD Head of Baltics, said: “This is one of the first renewable energy projects in the Baltics with a fully commercial structure. It paves the way for a more competitive and liquid electricity market in Estonia and demonstrates to other developers and financiers the commercial viability of renewable energy projects in Estonia, with the potential to unlock much more investment in the renewable energy space in the region.”

KC Solar2 OÜ is a special purpose vehicle registered in Estonia, established for the sole purpose of developing, constructing and operating a portfolio of two photovoltaic power plants with a total capacity of 52.5 MW. Kredyt Bank will finance the development, construction and operation of the second stage of the project with a capacity of 45 MW. KC Solar2 OÜ is 100% owned by KC Energy OÜ, an Estonian renewable energy developer that 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 storage solutions for renewable energy management.

The EBRD is the leading institutional investor in Estonia. To date, the Bank has invested EUR 974 million in 112 projects throughout the country. Supporting Estonia’s transition to a green economy through investments in energy efficiency and renewable energy is a key priority for the EBRD.