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The EBRD lends €22 million in Estonia-based KC Solar2 OÜ -
Loans, supported by the EU, will finance the development of the 45 MW photo voltaic park -
Investment to help the nation’s inexperienced transition targets and vitality safety
The European Bank for Reconstruction and Development (EBRD) is supporting the event of photo voltaic vitality in Estonia by lending €22 million to KC Solar2 OÜ to finance the development of a forty five MW photo voltaic park within the city of Kehra. The EBRD mortgage advantages from the first-loss threat cowl of the European Union (EU) below its InvestEU program.
In line with the EU’s strategic renewable vitality targets, Estonia has an bold goal of making certain that 65 p.c of its ultimate vitality consumption comes from renewable vitality by 2030. It additionally goals to have 100% of its electrical energy generated from renewable sources. renewable by 2030. Therefore, growing the photo voltaic vitality potential in Estonia is necessary to help these targets and shield Estonia’s vitality safety.
Once totally operational, the Pihlaka photo voltaic farm is predicted to generate 41,230 MWh per 12 months to be bought on the open market. This is not going to solely make a big contribution to the greening of Estonia’s electrical energy grid, however will even make it extra aggressive.
Tomas Kairys, EBRD Head of the Baltic States, stated: “This is without doubt one of the first renewable vitality initiatives within the Baltic international locations to be structured on a full service provider foundation. It paves the best way for a extra aggressive and liquid electrical energy market in Estonia, and demonstrates the business viability of renewable initiatives in Estonia for different builders and financiers, with the potential to unlock extra funding in renewables house within the area.
KC Solar2 OÜ is a particular goal car integrated in Estonia, established for the only goal of growing, constructing and working a portfolio of two photo voltaic photovoltaic energy crops with a complete capability of 52.5 MW. The Bank mortgage will finance the event, development and operation of the 45 MW Phase 2 of the challenge. KC Solar2 OÜ is 100% owned by KC Energy OÜ, an Estonian renewable vitality developer, which owns and operates round 83 MW of photo voltaic farms throughout the nation and has greater than 500 MW of photo voltaic and wind farms. within the pipeline, in addition to storage options for renewable vitality administration.
The EBRD is a number one institutional investor in Estonia. To date the Bank has invested €974 million in 112 initiatives throughout the nation. Supporting Estonia’s inexperienced economic system transition by investing in vitality effectivity and renewable vitality is a key precedence for the EBRD.
