The Baltic Storage Platform joint venture has successfully secured €85.6 million in financing from the European Bank for Reconstruction and Development, Edmond de Rothschild Asset Management, and the Nordic Investment Bank for its two battery energy storage projects, Hertz 1 and Hertz 2, located in Estonia. This groundbreaking transaction represents the first project financing in the Baltic countries that is exclusively structured around the revenues generated by energy storage assets.
The financing will support two projects located in Kiisa and Aruküla, both approximately 25 kilometers from Tallinn. With combined capacity of 200 megawatts of power and 400 megawatt-hours of storage, Hertz 1 and Hertz 2 will form one of the largest battery complexes in continental Europe.
Both the EBRD and the NIB financing benefit from a financial safety net via first-loss risk cover from the EU under its InvestEU programme. This structure demonstrates growing confidence in the bankability of large-scale energy storage projects across the region.
Strategic Infrastructure for Energy Independence
These assets will play a critical role in stabilizing the Baltic power system following recent synchronization with the European grid, and in accelerating the phase-out of fossil fuels. The timing is particularly significant as Estonia, Latvia, and Lithuania prepared to decouple from the Russian electricity grid in February 2025, synchronizing with the European network just days later.
Karl-Joonatan Kvell, CEO of Evecon, emphasized the strategic importance of the projects: “For Estonia, Hertz 1 and Hertz 2 are more than projects: they are strategic infrastructure that prove the energy transition is tangible. The imminent commissioning of Hertz 1 shows this financing is backing a real-world project already under construction.”
Technical Innovation and Construction Progress
Hertz 1 also features a major technical innovation: connection to Estonia’s 330 kilovolt transmission network through an underground cable – an unprecedented development in the country that will enhance grid resilience and facilitate renewable integration.
Hertz 1, located in Kiisa, was energized on 1 October 2025, with commissioning scheduled for the end of 2025 and the full suite of grid services expected in the first quarter of 2026. Hertz 2, situated in Aruküla, is under construction and scheduled to start operating by the end of 2026.
International Partnership Driving Success
The Baltic Storage Platform brings together three key partners with complementary expertise. The joint venture unites Corsica Sole, a French independent solar power producer with established expertise in energy storage; Evecon, Estonia’s leading renewable energy developer; and Mirova, an affiliate of Natixis Investment Managers dedicated to sustainable investment.
Michael Coudyser, CEO of Corsica Sole, highlighted the company’s role: “Corsica Sole has built its storage expertise in French island territories and in Belgium. With Hertz 1 and Hertz 2, we are bringing this unique know-how to support European grid stability and the energy sovereignty of the Baltic states.”
Raphaël Lance, Global Head of Private Assets at Mirova, noted the broader significance: “This closing with such reputable lenders demonstrates the bankability of large-scale energy storage, such as Hertz 1 and Hertz 2 in Estonia, and paves the way for a new generation of low-carbon infrastructure.”
Regional Energy Security Impact
André Küüsvek, NIB President and CEO, emphasized the regional importance: “With this financing, NIB is supporting strategic infrastructure that strengthens the regional energy security and climate goals across the Baltic region. These energy storage systems are essential for energy independence, ensuring grid stability and enabling more efficient integration of renewable energy sources.”
Grzegorz Zielinski, Head of Energy Europe at EBRD, stated that the bank is supporting “strategic investment” that enhances energy security and renewable integration across the region.
Advisory Support
The Baltic Storage Platform was advised by Astris Finance, Linklaters, Cobalt, AG Law, and RASK. The lending consortium was advised by A&O Shearman, Ellex, Clean Horizon, Everoze, WSP, WTW, and EY.
The successful financing and rapid construction progress of these projects demonstrate the growing maturity of the energy storage sector in the Baltic region and set a precedent for future battery storage investments structured on revenue-generation capabilities alone.
