Enefit Green acquires Nelja Energia in Estonia. Credit: Eesti Energia.

Eesti Energia’s renewable energy company Enefit Green has signed a share purchase agreement to acquire 100% stake in Nelja Energia for €289m.

Additionally, Enefit Green has agreed to take over €204m loans of Nelja Energia.

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The acquisition is expected to increase Enefit Green’s renewable energy production capacity from the existing 0.4 terawatt hour to more than one terawatt hour.

Upon completion of the deal, Enefit Green intends to make more investments in Nelja Energia for expanding renewable energy production in the Baltic Sea area.

“The strategic goal of Eesti Energia is to increase the share of electricity produced from renewable and alternative sources to 40%.”

Eesti Energia board chairman Hando Sutter said: “The strategic goal of Eesti Energia is to increase the share of electricity produced from renewable and alternative sources to 40% in the production portfolio of the group by the year 2022.

“Besides the construction of new production units, one more way to achieve the goal is to acquire suitable companies. When a message about the Vardar selling Nelja Energia came up at the beginning of the year, we were interested, because this would help us implement our strategy.”

Estonian-based Enefit Green owns four wind farms with a total capacity of 111MW, three cogeneration plants in Estonia and Latvia, one hydroelectric power plant, and one solar power plant.

Also headquartered in Estonia, Nelja Energia produces renewable energy in the Baltic States and owns 17 wind farms, which have a combined energy capacity of 287MW.

Enefit Green manager Aavo Kärmas said: “Renewable energy has a great future, and we are willing to contribute to this.

“We see ourselves in the future acting as a producer of renewable energy in Estonia, Finland, Latvia, Lithuania, and also in Poland – in all these countries Eesti Energia also operates as a power seller.”

Completion of the deal is subject to the approval of the Estonian, Latvian and Lithuanian competition authorities.