Estonia’s renewable energy sector marked a major milestone in 2024, attracting €244 million in investments from the European Bank for Reconstruction and Development (EBRD). This funding is fueling key solar and wind power projects designed to accelerate the nation’s green transition.
A standout project is the 45 MW KC Pihlaka Solar Park, which is set to generate over 41,000 MWh of clean energy annually, playing a crucial role in Estonia’s sustainable future.
Estonia’s Renewable Energy Revolution
In 2024, Estonia’s renewable energy industry made significant strides, fueled by a substantial increase in investments. The EBRD invested €244 million across 14 projects nationwide, with a focus on sustainable energy, digital transformation, and capital market growth.
The KC Pihlaka Solar Park in Kehra stands as a prime example of this progress. With a capacity of 45 MW, this Estonian solar farm is capable of producing over 41,000 MWh annually—a major step toward Estonia’s goal of sourcing 100% of its electricity from renewables by 2030.
The park’s construction, backed by a €22 million EBRD loan via the EU’s InvestEU program, represents a significant achievement for the nation’s green energy ambitions.
Tomas Kairys, Head of the Baltic States at EBRD, highlighted 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, emphasizing the need for continued commitment to clean energy development.
Key Milestones for Estonia
By late 2024, Estonia was generating a remarkable 63% of its electricity from renewable sources, placing it among the top five EU countries for renewable energy capacity. Solar power has been instrumental in this transformation, and projects like the KC Pihlaka Solar Park are adding substantial capacity.
Another project driving this growth is the Sopi-Tootsi wind farm, a 255 MW facility in West Estonia. Combining 38 wind turbines with a 95-hectare solar park, the development highlights 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 facility can power 35,000 households annually—a testament to Estonia’s leadership in renewable energy innovation.
Meeting Climate Goals with Green Investments
These green investments are essential for Estonia to meet its ambitious climate targets, including the goal of generating 65% of its final energy consumption from renewables by 2030. Projects like the KC Pihlaka Solar Park are critical drivers in achieving this vision.
Yoko Alender, Estonia’s Climate Minister, emphasized the country’s rapid growth of solar energy, noting a dramatic shift in just a few years.
“In 2020, Estonia had almost no solar capacity. Today, we rank sixth in the EU for solar panel capacity per capita,” Alender stated. “By 2030, our goal is clear: all electricity consumed must come from renewable sources.”
Estonia’s renewable energy progress is resonating beyond its borders. In 2024, a remarkable 95% of the EBRD’s €540 million investment in the Baltics was 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 portion of investments. Estonia’s cumulative EBRD investment now stands at €1.18 billion across 122 projects, positioning it as a key player in the region’s green future, just behind Lithuania and Latvia.
Local Community Impact: Long-Term Benefits Beyond Energy
The impact of Estonia’s renewable energy projects extends beyond the national grid, directly benefiting local communities. Through innovative revenue-sharing initiatives, solar parks like Kirikmäe contribute significantly to the local economy.
Municipalities receive a portion of the revenue generated, which helps fund community development and provides a steady, long-term income stream that supports local growth and stability.
Karl Kull, manager of Evecon, a key player in Estonia’s renewable energy sector, emphasised the long-term value of these 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 is a powerful example of Estonia’s commitment to its climate goals. Supported by EBRD funding, the project showcases the nation’s strategic approach to developing Estonia energy solutions, with solar energy leading the way.
As Estonia continues its ambitious green transition, it sets a strong benchmark for the EU, demonstrating how a focus on renewable energy can drive both economic growth and long-term environmental sustainability.
