The Estonian government at its sitting on Thursday authorized Finance Minister Martin Helme to approve the division of state-owned energy group Eesti Energia AS in order to transfer the Tootsi wind farm project to Enefit Green AS.
The Estonian government has given the green light to restructuring state-owned electricity generator Eesti Energia, transferring the planned Tootsi wind farm to Eesti Energia's renewables subsidiary Enefit Green.
As reported on ERR News, this is being done partly to shore up Enefit's value ahead of a planned initial public offering (IPO), scheduled for the fall after being delayed by the coronavirus pandemic, and also to avoid falling foul of European Commission state aid regulations.
In the course of division, all rights and obligations related to the project are transferred on the basis of law by way of universal succession, government spokespeople say, according to BNS, and the restructuring has no impact on the assets or economic activities of the Eesti Energia group.
Eesti Energia bought the 160-hectare plot, already earmarked for the wind farm, at Tootsi in Pärnu County, at auction in February, paying the (state-owned) forestry commission RMK €51.5 million for it. The opening price had been €12 million.
Enefit Green currently owns 20 wind farms in Estonia and Lithuania, four co-generation plants in Iru and Paide, in Estonia, and Valka and Broceni, in Latvia, one hydroelectric power plant in Keila-Joa, 36 solar power plants in Estonia and Poland and also a fuel pellet factory in Latvia, BNS reports.
Editor: Andrew Whyte