Estonia to expand solar-power production with €62 mln EIB, SEB and Luminor loan to renewables company Sunly

• EIB lends €31 million to Estonian renewable-energy company Sunly for a new solar park in the country, while SEB and Luminor will jointly contribute the same amount.
• 244 MW solar park in Risti in western Estonia to be largest photovoltaic-production (PV) site in the Baltics.
• Project marks significant step towards Baltic energy independence after decoupling from Russian grid.
   

The European Investment Bank (EIB), together with local commercial banks SEB and Luminor, is lending the Estonian renewable energy company Sunly €62 million to build and operate a solar park in the country, accelerating the Baltic region’s green transition and electricity independence. The EIB is lending €31 million to Sunly, while the remaining €31 million is covered by SEB and Luminor.

Risti solar park, to be located 65 kilometres southwest of the capital Tallinn in Lääne County, is due to become operational by 2027. It will be the biggest photovoltaic (PV) production site in the Baltics with capacity of 244 megawatt peak (MWp) – enough to power more than 80,000 households in Estonia. Solar park is built together with local landowner Metsagrupp.

The financing comes weeks after Estonia, Latvia and Lithuania completed a switch from Russia’s electricity grid to the European Union system, which serves more than 400 million customers, and advances the EU’s goal of becoming climate neutral by 2050.

"This investment underscores our commitment to support renewable-energy projects in the Baltic region,” said EIB Vice-President Thomas Östros. “By increasing solar-energy capacity in Estonia and integrating the Baltic states into the continental European grid, we improve energy security and resilience, reduce emissions and stimulate economic growth.”

The project marks the EIB's first fully merchant renewable energy financing operation in the Baltic market, which revenues will rely solely on sales in the electricity market.

Sunly currently operates 334 MW of renewable energy in the Baltics and Poland, has 839 MW under construction with an aim to reach 1 gigawatts operational and under construction by 2026.

"The EIB’s financing will support Sunly in developing the Risti solar park and its grid connection, designed to integrate battery storage and wind power at the same location,” said Priit Lepasepp, CEO of Sunly.  “Selected technology is making it possible Sunly to add 1000 MWh of battery storage to the grid in the Baltics by the end of 2026. This setup enables flexible expansion, optimized revenues, and greater energy stability for the market."

"We are applying the same strategy across the Baltics and Poland. Hybrid parks not only enhance efficiency but also accelerate grid connection timelines, significantly shortening the development and construction cycle. This makes hybrid parks more competitive than traditional single-technology renewable projects. For consumers, this means more electricity, delivered faster," added Lepasepp.

Both commercial banks highlight the importance of achieving Estonia's renewable energy goals.

"The solar park to be constructed is significant because it will provide the largest renewable electricity production capacity in Estonia to date, to be built at market conditions, fully supported by private and loan funds, without state subsidies or other support," said Indrek Julge, Head of Corporate Banking at Luminor Estonia. "The capacity of the new solar park will cover the electricity needs of more than 80,000 households – this will significantly increase Estonia's electricity independence."

"Financing renewable energy projects is not easy for banks in the current market situation, which makes the consistent professional work of the Sunly team in structuring their projects to be financially viable all the more commendable,“ commented Peep Jalakas, Member of the Management Board and Head of Corporate Banking at SEB. „We are especially pleased to see the EIB as the key lender for this project, as such cooperation between commercial banks and development banks is crucial for the realization of our renewable energy projects and for meeting Estonia’s renewable energy goals.“

In 2024, Estonia's solar capacity was estimated at 1200 MW, accounting for about a quarter of the country's total electricity-generation capacity. Estonia aims to install a total of 1480 MW of solar capacity by 2030. The new plant will contribute roughly 16% towards the 2030 target.

The total project cost is estimated at €125 million. The project supports the EIB's Climate Action and Economic and Social Cohesion objectives and will benefit from an InvestEU guarantee.