Enefit Green and Sumitomo Terminate Partnership for Liivi Bay Offshore Wind Farm Project

Estonia’s Enefit Green and Japan’s Sumitomo have reached a mutual agreement to terminate their partnership and cease further development of the Liivi Bay offshore wind farm project. This decision comes after extensive discussions on the offshore wind market in Estonia and careful evaluation of current market and regulatory conditions.

Enefit Green expressed that despite the collaborative efforts and dedication from both parties, the current market conditions do not provide the necessary clarity for investors to commit to a multi-billion-dollar investment in large-scale offshore wind projects. Additionally, the absence of a clear commitment from the state to introduce contracts for difference or other essential mechanisms for long-term investments in electricity generation played a significant role in the decision.

Juhan Aguraiuja, chairman of the management board of Enefit Green, emphasized the importance of a predictable electricity policy for the viability of offshore wind projects, stating, “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.”

Although Enefit Green will proceed with the permitting and environmental impact assessment process for the Liivi Bay offshore wind farm, the development and construction phases will be put on hold until more certain times. The project was initially planned to include up to 84 turbines with a maximum capacity of 1 GW, generating up to 4TWh of electricity annually. It was set to be located in the Gulf of Riga, 11 km from Kihnu Island.