Enefit Green has agreed with Sumitomo Corporation to terminate their partnership in the development of 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.
Throughout the partnership, the companies have had professional working relationships, valuing each other’s expertise and contributions. In recent months, both parties started to work on the project, making progress in its preparation and development.
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 investment in large-scale offshore wind projects. There is still no clear commitment from the state to introduce Contracts for Difference (CfD) or other mechanisms that are essential for such long-term investments in electricity generation.
'We are proud of what we have achieved together and truly value the expertise Sumitomo Corporation brought to the partnership. Offshore wind development is significantly more resource-intensive than onshore projects, even at the early stages. 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.
Aguraiuja added: 'Enefit Green will complete the permitting and environmental impact assessment process of the Liivi bay offshore wind farm to create an important opportunity for the future. Further development and subsequent construction will have to wait for more certain times.'
Sumitomo Corporation representatives added: 'We highly value Enefit Green as a trusted partner and sincerely appreciate the joint efforts made thus far to advance offshore wind development in Estonia.'
The Liivi Bay offshore wind farm is planned to consist of up to 84 turbines with a maximum total capacity of 1000 MW, with an annual electricity production of up to four terawatt-hours. The farm's location is in the Gulf of Riga, 11 km from Kihnu Island and 16 km from Häädemeeste.
Source: Enefit Green
