Enefit Green and Sumitomo Corporation have agreed to end their partnership in developing the Liivi Bay offshore wind farm project, according to Enefit Green's release.
The decision followed joint discussions on the offshore wind outlook in Estonia and an assessment of current market and regulatory conditions.
According to Enefit Green, despite professional cooperation and recent progress in project preparation, the current market environment does not provide the necessary clarity for investors to prepare a multi-billion investment in large-scale offshore wind projects.
The company noted the absence of a clear state commitment to introduce Contracts for Difference or other mechanisms essential for long-term investments in electricity generation.
Enefit Green will complete the permitting and environmental impact assessment process of the Liivi Bay offshore wind farm to maintain the opportunity for future development, but construction will have to wait for more certainty.
The Liivi Bay offshore wind farm is planned to include up to 84 turbines with a total capacity of up to 1000 MW and an annual electricity production of up to four terawatt-hours. It would be located in the Gulf of Riga, 11 km from Kihnu Island and 16 km from Häädemeeste.
Enefit Green AS is a publicly listed renewable energy company registered in Estonia. It operates as a subsidiary of Eesti Energia AS, focusing on electricity and heat production from wind, solar, biomass, and waste. The company is active in several Baltic and Central European markets.
Sumitomo Corporation is a multinational conglomerate corporation incorporated in Japan. It engages in a broad range of businesses, including metal products, transportation and construction systems, infrastructure, media, digital services, and power and renewable energy projects.