While global markets navigate uncertainty, Estonia is charting toward growth, backed by a vote of confidence from one of Europe’s leading development institutions.
Last year, the European Bank for Reconstruction and Development (EBRD) invested a record €244M in 14 local projects. What draws those numbers? The investment strategy strongly focuses on Estonia’s transition to sustainable energy infrastructure, writes Delfi.
Overall, the bank has focused on these areas:
- Renewable energy infrastructure
- Digital transformation initiatives
- Capital market development
A flagship project includes a €100M loan to support the construction and operation of the 255 MW Sopi-Tootsi wind farm by Enefit Green. Located in the West Estonia, it will be a cornerstone piece of a Sopi-Tootsi Renewable Energy Area: the wind farm component features 38 turbines reaching a peak height of 241 meters, while the solar park spans 95 hectares and will utilize approximately 600 kilometres of cabling.
Additionally, the bank has committed €22M to the KC Pihlaka solar park. Estonia is quickly adding massive amounts of solar capacity to its energy mix. As of the end of 2024, 63% of the country’s total electricity production comes from renewable sources, placing it in the top-5 in the EU.
Another big commitment from EBRD was a €20M investment in the EfTEN Special Opportunities Fund. Launched in January 2024, it is designed to back various real estate asset classes across the Baltic States, emphasising energy efficiency.
Leading in the region
In the broader Baltic context, EBRD’s total investment in the region reached €540 million in 2024, of which 95% was directed toward green transition projects.
With its record-breaking stats, Estonia shifted the historical pattern where Lithuania typically received the larger share ofEBRD funding.
To date, EBRD’s cumulative investment in Estonia stands at €1.18B across 122 projects, comparing favourably with Latvia’s €1.19 billion (116 projects) and approaching Lithuania’s €1.77B (141 projects).
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