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Enefit Green has agreed with Japan’s Sumitomo Corporation to terminate their partnership in the development of the Liivi Bay offshore wind farm in Estonia.
The decision follows thorough joint discussions on the offshore wind outlook in Estonia and assessment of the current market and regulatory conditions.
In recent months, both parties started to work on the Liivi Bay offshore wind project, making progress in its preparation and development.
According to Enefit, the current outlook does not provide the necessary clarity for investors to prepare a multi-billion investment in large-scale offshore wind projects, as there is still no clear commitment from the state to introduce Contracts for Difference (CfD) or another mechanism that is essential for such long-term investments.
“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,” said Juhan Aguraiuja , Chairman of the Management Board of Enefit Green.
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Enefit Green has been developing the Liivi Bay offshore wind farm after taking over the project from its parent company, Eesti Energia , in 2023.
The offshore wind farm, proposed to be built at a site located 11 kilometres from Kihnu Island and 16 kilometres from Häädemeeste, is planned to consist of up to 84 turbines with a total capacity of 1 GW, with an annual electricity production of up to 4 TWh.