January 23, 2025

Estonia’s Renewable Energy Leap: Investments and Milestones of 2024

Estonia’s renewable energy sector reached a significant milestone in 2024 with €244 million in investments from the EBRD, focused on solar and wind power projects. A key development, the 45 MW KC Pihlaka Solar Park, will generate over 41,000 MWh annually.

Estonia’s Renewable Energy Revolution


In 2024, Estonia's renewable energy industry achieved a landmark accomplishment, partly due to a substantial increase in investments. The European Bank for Reconstruction and Development (EBRD) contributed €244 million to 14 projects across the country, which focused on sustainable energy, digital transformation, and capital market growth. 

The KC Pihlaka Solar Park — located in Kehra — is one of the standout projects. This 45 MW solar farm, which will produce over 41,000 MWh annually, is a major step toward Estonia’s goal of sourcing 100% of its electricity from renewables by 2030. With an EBRD loan of €22 million — supported by the EU's InvestEU program — the park’s construction is a major win for the nation’s green energy ambitions.

Tomas Kairys, Head of the Baltic States at EBRD, noted that the KC Pihlaka Solar Park exemplifies the commercial viability of renewable energy in Estonia. "This project will inspire further investment in the region’s green energy future," Kairys said, underscoring the importance of continued commitment to clean energy development.

Key Milestones for Estonia


By late 2024, Estonia had achieved a remarkable 63% of its electricity production from renewable sources. This achievement places Estonia among the top five EU countries for renewable energy capacity. Solar power plays a crucial role in this transformation, with projects like the KC Pihlaka Solar Park adding substantial capacity.

Another major project contributing to this growth is the Sopi-Tootsi wind farm, a 255 MW facility located in West Estonia. Featuring 38 wind turbines and a 95-hectare solar park, the project reflects Estonia’s commitment to diversifying its renewable energy portfolio.

The country also celebrated the inauguration of the Kirikmäe solar park in Pärnu County, one of the largest in the Baltics. Covering 110 hectares, the 77 MW solar park is capable of providing electricity to 35,000 households annually. This underscores Estonia’s leadership in renewable energy innovation.

Meeting Climate Goals with Green Investments


Estonia’s ambitious climate targets include generating 65% of its final energy consumption from renewable sources by 2030. The investments in renewable energy projects — like the KC Pihlaka Solar Park — play a critical role in achieving these targets.

Yoko Alender, Estonia’s Climate Minister, emphasized the rapid growth of solar energy in the country. “In 2020, Estonia had almost no solar capacity. Today, we rank sixth in the EU for solar panel capacity per capita. By 2030, our goal is clear: all electricity consumed must come from renewable sources,” Alender stated.

Estonia's renewable energy progress also resonates beyond its borders. The EBRD’s €540 million investment in the Baltics in 2024 saw 95% of the funds directed toward green transition projects, with Estonia securing an increasing share. This shift marks a significant departure from historical trends, where Lithuania traditionally received the largest share of investments. Estonia’s cumulative EBRD investment now stands at €1.18 billion across 122 projects, positioning it just behind Lithuania and Latvia in the region.

Local Community Impact: Long-Term Benefits Beyond Energy


The impact of Estonia’s renewable energy projects extends beyond the energy grid; they benefit local communities through revenue-sharing initiatives. Solar parks like Kirikmäe Solar Park contribute directly to the local economy, with municipalities receiving a portion of the revenue generated. This helps fund community development and provides a steady source of income over the long lifespan of the projects.

Karl Kull, manager of Evecon, a key player in Estonia’s renewable energy sector, emphasised the long-term value of such investments. “These projects have lifespans of 25 years or more, and their benefits will be felt for decades. They represent game-changers for both Estonia’s energy market and its communities,” Kull said.

The KC Pihlaka Solar Park stands as a prime example of Estonia's commitment to achieving its climate goals. Supported by EBRD funding, it reflects the nation's strategic approach to renewable energy development, with solar energy leading the way. As Estonia continues its green energy transition, it sets a benchmark for the EU, thus demonstrating how renewable energy can drive both economic growth and environmental sustainability.


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