Estonia’s energy mix will become more environmentally sound and enjoy greater security of supply thanks to wind power and waste-to-energy projects financed by the European Investment Bank (EIB). Under an agreement signed today in Tallinn with energy company Eesti Energia, the EIB will provide a EUR 50 m loan for a waste-to-energy plant in Iru, in the proximity of the Estonian capital. It will also provide a EUR 45 m loan for two onshore wind parks, one of several such projects supported by the EIB in the Baltic Sea Region. The wind parks will be built in Narva and Paldiski, comprising 39 MW and 22 MW respectively, helping Estonia meet its EU 2020 targets for renewable energy production.
The new waste-to-energy facility is located at an existing heat and power production site, which will reduce investment costs. It is set to partly replace existing gas fired units in the Iru power plant constructed in 1980 to reduce dependency on imported gas and adapt to higher environmental standards in the future. Moreover, the project will reduce significantly the use of landfills.
These EIB loans are among many supporting the EU Strategy for the Baltic Sea Region and its four priorities: sustainable environment; regional prosperity; increased accessibility and attractiveness; safety and security.
“We are glad to support these two important projects which will benefit Estonia in increasing the production of renewable energy, in reducing emissions and in strengthening security of energy supply” said Matthias Kollatz-Ahnen, EIB Vice President responsible for Estonia, at the signing ceremony.
“Eesti Energia aims to be a competitive producer on the opening regional electricity market and our goal is to diversify our production portfolio through more environmentally sustainable methods of electricity generation. We are making a number of investments to achieve this and we are glad to have EIB support,” said Raine Pajo, Eesti Energia's Member of the Management Board responsible for electricity and heat generation.