Iberdrola Estonia Wind

Location:

Estonia

Project number:

38721

Business sector:

Power and energy

Notice type:

Private

Environmental category:

C

Target board date:

28 May 2008

Status:

Completed

PSD disclosed:

23 Apr 2008

Project Description

The development of the 150MW Lüganuse Windfarm project (the “Project”), located approximately 120 km east of Tallinn, and close to the Baltic Sea shore. The Project is to contribute to the development of renewable energy in Estonia and aims to substantially increase the Estonian wind generation capacity that currently totals approx. 60MW.

Transition Impact

The project transition impact will derive from the following key areas:

  • Demonstration of new replicable product – first of the kind renewable energy project in Estonia.
  • Demonstration of a new way of financing – equity financing for wind farm development with market risk of renewable energy support.
  • Promoting regulatory reforms that improve market conditions for wind power in Estonia.
  • Setting standards for business conduct and environmental review of windfarm projects in Estonia.

The Client

OÜ Raisner (the “Company”), a private limited liability company operating with the sole purpose to develop the 150MW Lüganuse Windfarm. The Company is majority owned by Ibedrola Energias Renovables II (“Iberenova”), with a minority stake hold by OU Adepte (“Adepte”) the local and original developer of the Project.

Iberenova is a renewable energy arm of Iberdrola, and a world leader in wind energy.

EBRD Finance

EBRD is to provide up to EUR 900,000 equity investment in the Company as a first stage investment.

Project Cost

Confidential.

Environmental Impact

The Project has been screened as C/1 requiring an environmental due diligence of the Project to review the Client's approach to structuring projects and to ascertain (i) the site sensitivity and (ii) whether the Project is structured to meet EU environmental standards. The Bank is in the process of undertaking an Environmental due diligence of the Project, and initial information shows that the Project is being designed in accordance with EU environmental standards and is not located in an environmentally sensitive areas (such as Natura 2000 area). Additional site visits are planned to complete the due diligence process. Based on the due diligence, the Bank will agree an environmental and social action plan (ESAP), which will be implemented by the Company.

The scope of the Bank due diligence is based on the current structure of the Bank’s investment, which is only for the development of a bankable project, and does not cover the future construction phase. In essence, the Bank's investment will be used among others to undertake an National, EU and Bank complaint EIA. Although the initial analysis has confirmed the low risk associated with the Project, additional data is required, and the true sensitivity of the Project will be fully ascertained as part of the implementation phase of this project (among others developing the EIA).

The involvement of the Bank will also foster the development of best practice in wind farm EIA in Eastern Europe, and could serve as a demonstration project.
The Bank will monitor the project and assist with implementation as required. The future development of the wind farm will need to follow all relevant provisions under the Bank's Environmental Policy and be subject to additional due diligence.

Technical Cooperation

None.

Company Contact

Mr. Raigo Solg
OÜ Raisner
Jaama 1a
11615 Tallinn
Estonia
Tel: +372 6 732244
Fax: +372 6 732246

E-mail: raigo@windrose.ee

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.