EIB, SEB, and Luminor Propel Estonia’s Renewable Energy Ambitions with €62 Million Solar Park Investment

EIB, SEB, and Luminor Propel Estonia’s Renewable Energy Ambitions with €62 Million Solar Park Investment. Photo credit: Sunly

(IN BRIEF) A consortium led by the European Investment Bank in partnership with SEB and Luminor has provided €62 million to Sunly for a new 244 MW solar park in Risti, Estonia. Expected to be the Baltics’ largest photovoltaic facility and operational by 2027, the project aims to boost the region’s energy independence and integrate advanced technologies like battery storage and wind power. This investment supports Estonia’s renewable energy targets and follows the recent transition from Russia’s grid to the European Union system.

(PRESS RELEASE) LUXEMBOURG, 11-Mar-2025 — /EuropaWire/ — A consortium led by the European Investment Bank (EIB), the lending arm of the European Union, in partnership with local commercial institutions SEB and Luminor, has provided €62 million in financing to the Estonian renewable energy firm Sunly for a groundbreaking solar park project. Under this agreement, the EIB is responsible for €31 million of the funds, with SEB and Luminor jointly contributing the remaining sum.

The project, located in Risti—approximately 65 kilometres southwest of Tallinn in Lääne County—will establish the Baltics’ largest photovoltaic (PV) production facility. With a planned capacity of 244 megawatt peak (MWp), the solar park is expected to generate sufficient electricity to power over 80,000 Estonian households once it becomes operational by 2027. This initiative is being developed in collaboration with local landowner Metsagrupp.

This investment arrives just weeks after Estonia, along with its Baltic neighbors Latvia and Lithuania, transitioned from relying on Russia’s electricity grid to integrating with the European Union system—a network serving over 400 million people. The move not only underlines the region’s commitment to achieving energy independence but also supports the EU’s broader objective of reaching climate neutrality by 2050.

Thomas Östros, Vice-President of the EIB, emphasized the strategic importance of the deal:

“This investment underscores our commitment to support renewable-energy projects in the Baltic region. 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 financing also marks a milestone as the EIB’s inaugural fully merchant renewable energy operation in the Baltic market, where revenue generation is entirely reliant on electricity sales. Sunly, which already operates 334 MW of renewable energy assets across the Baltics and Poland, is rapidly expanding its portfolio—with 839 MW currently under construction and an ambition to achieve 1 gigawatt of combined operational and under-construction capacity by 2026.

Sunly’s CEO, Priit Lepasepp, highlighted the project’s innovative approach:

“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. This setup will enable us to add 1000 MWh of battery storage to the grid by the end of 2026, ensuring flexible expansion, optimized revenues, and enhanced energy stability for the market.”

Lepasepp further explained that the firm’s strategy across the Baltics and Poland involves constructing hybrid parks that not only boost efficiency but also accelerate grid connection timelines, making them more competitive than traditional renewable projects.

Both SEB and Luminor underscore the importance of the venture in meeting Estonia’s renewable energy targets. Indrek Julge, Head of Corporate Banking at Luminor Estonia, remarked:

“The solar park is significant because it will provide the largest renewable electricity production capacity in Estonia to date. Built under market conditions and supported entirely by private and loan funds, this project will cover the electricity needs of more than 80,000 households, significantly enhancing Estonia’s energy independence.”

Peep Jalakas, Member of the Management Board and Head of Corporate Banking at SEB, added:

“Financing renewable energy projects is challenging in the current market, which makes the consistent professional work of the Sunly team in structuring their projects commendable. We are especially pleased to have the EIB as the key lender, as cooperation between commercial and development banks is essential for achieving Estonia’s renewable energy goals.”

With an estimated total cost of €125 million, the Risti solar park is poised to contribute roughly 16% toward Estonia’s 2030 goal of 1480 MW of solar capacity—an ambitious target in a country that already had an installed capacity of 1200 MW in 2024.

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, the EIB finances investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and the bioeconomy, social infrastructure, the capital markets union and a stronger Europe in  the world.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security. In 2024, Estonia received €498 million in financing from the EIB Group, fuelling business innovation and green growth.

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InvestEU

The InvestEU programme provides the EU with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the EU’s policy priorities such as the European Green Deal and the digital transition. InvestEU brings together under one roof the multitude of EU financial instruments currently available to support investment in the EU, making funding for investment projects in Europe simpler, more efficient and more flexible.

Sunly
Sunly is a renewable energy producer, dedicated to developing and operating renewable energy projects across the Baltics and Poland, while also investing in startups in the electrification sector and selling 100% renewable electricity to consumers in Estonia.
At the heart of Sunly’s mission is renewable energy production, playing a crucial role in achieving regional climate goals, energy security, and affordability.
Sunly has successfully raised €825 million from international investors, including EBRD, Copenhagen Infrastructure Partners (CIP), Mirova, Rivage, and others. Currently, Sunly has 332 MW of operational solar and storage assets and 839 MW of wind, solar, and storage capacity under construction, including the largest solar park in the Baltics – the 244 MW Risti project. Risti Energy Park SPV is Metsapäike Risti OÜ.

SEB

As the leading business bank in the Nordics, SEB is one of the largest financiers of renewable energy in the Baltics. SEB’s green financing portfolio has grown significantly in recent years, supporting various sustainable projects, including wind and solar parks, as well as energy efficiency solutions for businesses and households.

Luminor

Luminor is a leading independent bank in the Baltics and the region’s third-largest financial services provider. We take care of the financial needs of individuals, families, and businesses. We are here to promote the financial health of our clients and home countries and support their growth.

Media contact:

Kristiina Randmaa
k.randmaa@eib.org
+352 4379 – 72894

Press Office
press@eib.org
+352 43791

SOURCE: European Investment Bank