Provision of a PLN 40 million (c. EUR 9 million) senior unsecured loan to Enefit Green AS, the renewable arm of Estonia's state-owned utility company Eesti Energia, in order to support its entry to the Polish market through the financing of the acquisition of 20 small scale greenfield solar plants totalling up to 19.2 MW upon completion, thus indirectly refinancing their construction.
Support the construction of new solar projects in Poland, whose solar sector is still at an early stage of development and the entry of a new player in the Polish renewable energy market.
ETI score: 61
The project will target the "Green" transition quality by indirectly supporting the construction of up to 19.2 MW of newly built solar plant capacity and the "Integrated" transition quality by supporting the entrance in the Polish energy market of a growing Estonian renewable energy player.
ENEFIT GREEN AS
Enefit Green AS (100% owned by Eesti Energia AS)
Eesti Energia started its operations in the renewables sector in 2002 and established Enefit Green in 2016 as its dedicated renewables subsidiary. Enefit Green has been growing rapidly and is now a leading renewable player in the Baltic states with 447 MW of installed electrical capacity and 83 MW of thermal capacity.
EBRD Finance Summary
Total Project Cost
Environmental and Social Summary
Categorised B (2014 ESP). The Company owns, operates, develops and acquires renewable energy assets. The loan proceeds will be used for financing the acquisition of 20 small size solar power plants in Poland. The ESDD was undertaken by the Bank's environmental and social specialists, and it included a review of the Bank's ESDD Questionnaire completed by the Company and supporting documentation, discussions with the relevant representatives of the Company's management as well as site visits to selected renewable energy plants owned and operated by the Company, including a small hydropower plant, a medium size wind farm, a small solar energy plant and a waste-to-energy plant. The ESDD focused on the Company's pre-acquisition due diligence for the solar plants in Poland to be acquired, and it also reviewed the Company's sustainability strategy, policies and procedures as well as environmental, social management systems and capacity.
The ESDD showed that the Company has a proactive corporate sustainability strategy, encompassing its environment social performance, human resources management, health and safety, biodiversity, socio-economic impacts and community relations and that it has a strong commitment to implementing sustainable practices throughout its operations. The ESDD concluded that the Company is currently in compliance with National and EU environmental laws and regulations, is implementing a number of international good or best practices and has the capacity to implement the Bank's Performance Requirements (PRs). The Company is operating its renewable energy plants in compliance with local regulatory requirements and EU environmental standards, including Best Available Techniques standards under the Industrial Emission Directive applicable to the waste-to-energy plant. Enefit Green recently acquired Nelja Energia, a renewable energy operator and project developer, to which the Bank gave a sustainability award in 2011 for best environmental and social practices exceeding environmental & social requirements.
All the solar energy plants in Poland are small (below 1 MWe each) and developed on secondary quality agricultural land in accordance with the Polish regulatory requirements. None of the plants required a local Environmental Impact Assessment (EIA) under EIA Directive or Polish law. None of them is located in the vicinity of Natura 2000 or cultural heritage sites. All land required for the solar plants has been acquired on the basis of negotiated contracts. The Company has set a condition precedent for all the solar plants to obtain certification of eligibility for green energy support scheme from the competent authorities, ascertaining compliance with Polish law.
Based on the ESDD, a corporate Environmental and Social Action Plan (ESAP) has been developed and agreed with the Company. The ESAP commits the Company to: carrying out its investment programmes and operations in accordance with EU and National environmental and social requirements; formalising its pre-acquisition E&S due diligence approach; continuing to undertake EIAs of its development projects as and when required under national law and disclosing the EIAs on its website; obtaining internationally recognised occupational health and safety certification (OHSAS 18001); maintaining its environmental and total quality management system certifications; minimising environmental impacts on the land at the Polish solar power plants by applying the best available techniques and adhering to sustainable use of resources; and developing new renewable energy projects in compliance with the Bank's Performance Requirements.
The Bank will monitor the environmental and social performance of the Company by reviewing its annual reporting to the Bank on environmental and social matters and its development projects as well as on the implementation of the ESAP.
Company Contact Information
+372 5865 4999
Enefit Green AS, Lelle 22, 11318 Tallinn, Estonia
PSD last updated
14 Apr 2020
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