Estonia’s Enefit Green and Japan’s Sumitomo have agreed to terminate their partnership and the development of the Liivi Bay offshore wind farm project.
The decision follows thorough joint discussions on the offshore wind outlook in Estonia and assessment of the current market and regulatory conditions.
Enefit Green said that, despite close cooperation and significant efforts from both parties, the current market outlook does not provide the necessary clarity for investors to prepare a multi-billion-dollar investment in large-scale offshore wind projects.
Also, there is still no clear commitment from the state to introduce contracts for difference or other mechanisms that are essential for such long-term investments in electricity generation.
“Without a clear and predictable outlook on future electricity policy, it’s simply not viable to continue committing resources at the same level. Offshore wind has a vital role to play in Estonia’s future energy mix, but this requires more than just a strong project – it requires long-term political and financial commitment,” stated Juhan Aguraiuja, chairman of the management board of Enefit Green.
The Estonian company will complete the permitting and environmental impact assessment process of the project, but development and construction will have to wait “for more certain times”.
The Liivi Bay offshore wind farm was planned to consist of up to 84 turbines with a maximum total capacity of 1 GW, producing up to 4TWh of electricity annually. The farm’s location is in the Gulf of Riga, 11 km from Kihnu Island.
