Marking a landmark transaction in the Baltic energy market, Baltic Storage Platform has secured EUR 85.6 million in financing for two battery energy storage system (BESS) projects in Estonia. The project was financed by European Bank for Reconstruction and Development (EBRD), Edmond de Rothschild Asset Management, and the Nordic Investment Bank (NIB).
The transaction is remarkable as a pioneer in the energy sector being the first of its kind in Estonia to be fully based on revenues generated by BESS assets. The financing supports two BESS projects in Estonia with combined capacity of 200 MW of power and 400 MWh of storage capacity, forming one of the largest battery complexes in Europe. These projects contribute significantly to the stabilisation and independent functionality of Baltic power system especially following the recent synchronization with the European electricity grid. Battery storage systems also play a crucial role in transition to green energy providing the necessary storage capacity to help even out the fluctuations inherent in the renewable electricity production.
This project sends a clear signal to the market that major private sector market participants are willing and interested to directly invest in large scale strategic energy infrastructure projects in the Baltics and proves that BESS projects are now deemed bankable assets. As such the project has paved the way for new BESS but also other renewable energy project financings in the region.
Baltic Storage Platform OÜ is an Estonian joint venture company established in 2023 between Estonia’s leading renewable energy developer Evecon, French independent solar power producer Corsica Sole and an affiliate of Natixis Investment Managers focusing on sustainable investments – Mirova. The construction of the storage systems is well under way with the first planned to be become fully operational in Q1 2026 and the second entering into operation by end of 2026.
COBALT together with Linklaters assisted Baltic Storage Platform throughout the process, from negotiating the facilities agreements to setting up a comprehensive securities portfolio consisting of a wide range of assets. Our team included Partners Marina Kotkas and Jesse Kivisaari, Specialist Counsel Georg Kuusik, Senior Associate Tiina Ilus, Associate Ken Saksniit, Junior Associate Paul Schifrin and Assistant Lawyer Joosep Lang.
See more about the transaction from the joint press release.
Photo: Baltic Storage Platform
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