Tallinn, Estonia – Enefit Green AS, the Estonian renewable energy company, is streamlining its portfolio with the planned sale of its district heating businesses in Paide, Estonia, and Valka, Latvia. The move, announced on , signals a strategic shift towards greater investment in wind and solar energy projects within the Baltic region.
The decision to divest the district heating assets comes as Enefit Green refocuses its resources on expanding its renewable energy capacity. According to the company, the sale will allow for increased investment in wind and solar initiatives, aligning with a broader trend in the energy sector towards decarbonization and sustainable energy sources. This follows a period of significant change for the company, which was initially established in 2016 as the renewable energy arm of Eesti Energia, the Estonian state-owned energy company.
Enefit Green’s history reflects the evolving energy landscape of Estonia and the wider Baltic states. The company went public on the Nasdaq Tallinn exchange in October 2021, offering 23% of its share capital to the public. However, in a notable reversal, the Estonian state regained full control of Enefit Green between May and July 2025, effectively renationalizing the company. This move underscores the strategic importance of energy security and control for the Estonian government.
Currently, Enefit Green’s portfolio is diverse, encompassing four wind farms (Paldiski, Narva, Aulepa, and Virtsu), the Iru waste-to-energy plant, biomass power plants in Paide and Valka (the assets now slated for sale), the Keila-Joa hydroelectric power plant, and a hybrid power generation system on the island of Ruhnu. Through its subsidiary, Nelja Energia, the company also owns eleven wind farms in Estonia and four in Lithuania, alongside biogas and pellet production facilities in Estonia and Latvia. A significant future project is a planned 700–1,100 MW offshore wind farm off the coast of Hiiumaa, Estonia.
The sale of the district heating operations in Paide and Valka represents a deliberate narrowing of Enefit Green’s focus. While district heating remains an important part of the energy infrastructure in many parts of Europe, including Latvia and Estonia, it is not considered a core growth area for Enefit Green’s long-term strategy. The company’s emphasis on wind and solar power reflects a broader industry trend, driven by falling costs and increasing environmental concerns.
Enefit’s broader operations extend beyond power generation. The parent company, Enefit, describes itself as delivering “seamless energy for a better life,” encompassing the entire electricity value chain from generation to customer relationships. Enefit Industry focuses on liquid fuels production and circular economy solutions, while Elektrilevi manages and maintains nearly the entire electricity network in Estonia, comprising over 63,000 kilometers of infrastructure and 25,000 substations. The company is actively working to improve the resilience of the electricity network through innovative maintenance and automation technologies.
The Latvian market is particularly relevant to Enefit’s strategy. Latvia, with its diverse geography – including fertile plains and swampy lowlands – presents unique challenges and opportunities for energy infrastructure development. Enefit’s presence in Latvia, through both the Valka district heating plant and Nelja Energia’s operations, demonstrates its commitment to the region. The company’s focus on providing “green energy” – electricity generated from renewable sources – aligns with growing consumer demand for sustainable energy options.
Enefit emphasizes customer service and accessibility. The company reports handling over 107,000 customer calls in 2025, with the longest call lasting nearly 54 minutes, demonstrating a commitment to providing thorough support. They also state they responded to over 18,000 emails, ensuring all inquiries receive attention. Enefit aims to simplify the process of switching to green electricity, offering contracts that can be completed in under two minutes online or through their mobile app.
The move to sell the district heating assets is likely to be viewed positively by investors focused on renewable energy growth. By streamlining its portfolio and concentrating on wind and solar, Enefit Green is positioning itself to capitalize on the increasing demand for clean energy solutions in the Baltic region and beyond. The renationalization of the company in 2025, while a significant event, does not appear to have deterred its commitment to renewable energy development, as evidenced by this strategic divestment and continued investment in new projects.
The company’s website, www.enefit.lv, invites new customers to join its network, highlighting its commitment to providing green electricity and convenient service.
