Enefit Green has agreed with Sumitomo Corporation to terminate their partnership in the development of Liivi Bay offshore wind farm project.
Enefit said the decision followed thorough joint discussions on the offshore wind outlook in Estonia and assessment of the current market and regulatory conditions.
Enefit 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 investment in large-scale offshore wind projects.
The company added that there is still no clear commitment from the Estonian Government to introduce contracts for difference or other mechanisms that are essential for such long-term investments in electricity generation.
"Offshore wind development is significantly more resource-intensive than onshore projects, even at the early stages," remarked Juhan Aguraiuja, Chairman of the Management Board of Enefit Green. "Without a clear and predictable outlook on future electricity policy, it's simply not viable to continue committing resources at the same level."
Aguraiuja added that Enefit Green will complete the permitting and environmental impact assessment process of the Liivi Bay offshore wind farm, clarifying that further development and subsequent construction, "will have to wait for more certain times."
The Liivi Bay offshore wind farm is planned to consist of up to 84 turbines with a maximum total capacity of 1,000 MW and an annual electricity production of up to four TWh.
The farm's location is in the Gulf of Riga, 11 kilometres from Kihnu Island and 16 kilometres from Häädemeeste.