The EBRD is providing an equityEquity is the concept or idea of fairness in economics, particularly as to taxation or welfare economics. investment of €18.85 million to Freenergy AS, a leading Estonian investor in renewable energyRenewable energy is power generated from infinite sources, such as wind or solar power. Conventional energy is generated from finite sources, such as natural gas or fossil oil. in eastern Europe, to boost the volumes of green energyThe ability to perform work, mainly kinetic, potential, thermal energy, but also in forms of gravitational, sound, elastic and electromagnetic energy. generated in the Baltic states.

By taking a 35 percent stake in Freenergy, the EBRD will support the company’s plans to upgrade and further develop the current portfolio of 15 wind farms, which are managed by Nelja Energia OÜ. Eleven of the farms are situated in Estonia, three in Lithuania and one in Latvia.

Upon completion, the 15 wind farmsA group of wind turbines interconnected to a common power provider system through a system of transformers, distribution lines, and (usually) one substation. Operation, control, and maintenance functions are often centralized through a network of computerized monitoring systems, supplemented by ... will have a combined capacity of 330 megawatts, nearly tripling the current wind powerWind power is the conversion of wind energy into a useful form, such as electricity, using wind turbines. By 2010, a single wind turbine can produce several MW of electric power. capacity in the region. These increased volumes of windWind occurs due to different temperature levels in the atmosphere (troposphere) which are heated up by the sun. A typical example are the trade winds at the equator where the sun is most powerful.. powerUseful energy can be mechanical energy, for example powering a fan. would be able to cover roughly 3 percent of the current total electricity consumptionThe electricity consumption is currently rising, in private applications as well as in industries. Energy efficient equipment as one method to reduce consumption. in the Baltics.

Baltic States - Source: Wikipedia

Currently less than one percent of Estonia’s power consumptionThe electricity consumption is currently rising, in private applications as well as in industries. Energy efficient equipment as one method to reduce consumption. comes from renewable sources, while Lithuania relies on green sources for around four percent of its electricityA form of energy having magnetic, radiant and chemical effects. Electric current is created by a flow of electrons. needs. Due to wide availability of hydroHydro power is electrical energy produced through the power of moving water.
Power obtained from the (typically gravitational) movement of water. resources, Latvia is a leader in the region with over 40 percent of consumed power coming from renewablesRenewable energy is power generated from infinite sources, such as wind or solar power. Conventional energy is generated from finite sources, such as natural gas or fossil oil..

This project will help the three Baltic states improve their energy security by reducing dependency on imports. Increasing generation of renewable energy is also an EU requirement for the three countries.

In addition, Freenergy’s wind farms will help the region to mitigate the issue of power capacity shortage after the closure of the Ignalina nuclear power plant, on which the region is currently highly dependent.

“Promoting renewable energy generation is one of the EBRD’s key priorities in the Baltics. This project will make the region less dependent on energy imports and will set an example of successful business in green energy generation”, said Peter Reiniger, EBRD’s Business Group Director for Central and Eastern Europe and the Western Balkans.

Recently the EBRD has provided financing for wind farms in Turkey, Poland and Bulgaria and the Bank will continue to support similar projects in across the region of its operations.

“We would like to thank the EBRD for helping to bolster generation of green energy in the Baltics. The Bank’s support demonstrates that Freenergy has a strong portfolio of projects, which are attractive even in current tight credit markets”, added Kalle Kiigske, Member of the Management Boards of Freenergy and Nelja Energia OÜ, during the signing ceremony.

Since the beginning of the EBRD’s operations in the Baltics, the Bank has invested over €1 billion in Estonia, Latvia and Lithuania, implementing a total of 115 projects in corporate, financial, energy and infrastructure sectors.