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Estonian offshore wind farm

The Estonian offshore wind farm will be built at Liivi 1 and 2 sites, which are designated for offshore wind energy development in the Estonian Maritime Spatial Plan (MSP). The wind farm will be located in the Gulf of Riga, northwest of Ruhnu Island, near Estonia’s Baltic Sea coast, and cover an area approximately 193 square kilometres in total. Liivi 1 and 2 sites are planned to be developed as a single offshore wind project.

Project description

The designation of the Liivi 1 and 2 sites in the Maritime Spatial Plan (MSP) is based on a holistic assessment of the Estonian Exclusive Economic Zone (EEZ) completed by Ministry of Finance, following the evaluation of other interests and activities in the area including, but not limited to, nature and environmental protection, shipping corridors, fishery, existing energy infrastructure, military use and aviation requirements.

The theoretical potential capacity of both sites is calculated to be 2.3 gigawatts (GW). However, the actual capacity of the offshore wind farm is likely to be lower and could be around 1–1.5 GW. It will depend on the environmental impact assessment’s results, geology of the area, defence requirements, site optimisation, electricity demand, socio-economic considerations, as well as other factors. The offshore wind farm is expected to become operational around 2035.

The offshore wind farm will significantly increase renewable energy production in Estonia, thereby reducing the dependence on electricity imports. The project is being developed by Ignitis Renewables, an international green energy company, and Copenhagen Infrastructure Partners (CIP), the world’s largest dedicated fund manager in greenfield renewable energy investments and a global leader in offshore wind.

Key benefits

The establishment of an offshore wind farm brings both direct and indirect socioeconomic benefits.

Energy security

The wind farm will enhance Estonia’s domestic renewable energy production, thereby reducing Estonia's dependence on imported energy and creating the conditions for the development of energy-intensive industries. It will help balance the electricity grid and support Estonia’s transition towards carbon neutrality.

Economic growth

The construction and operation of the wind farm will create new jobs, both directly in the renewable energy sector and indirectly in industries such as maintenance and logistics. Local businesses will benefit from the construction phase and long-term maintenance operations, boosting regional economic activity.

Environmental impact

The project's goal is to deliver clean and renewable energy, help reduce carbon dioxide (CO2) emissions and minimise the environmental footprint of fossil fuels. The wind farm’s development is based on comprehensive environmental impact studies and the best practices to minimise its impact on the Baltic Sea.

Energy production fee

Local communities will receive direct financial compensation (energy production fee) from the wind farm starting from the construction phase.

The compensation will be divided into two periods:

Construction period (2–3 years)

The compensation amount is 10% of the sum that will be paid once the wind turbines start generating electricity according to the Environmental Charges Act of Estonia.
Payments will begin immediately after the official announcement of the start of the constructions and will continue throughout the entire construction phase until the electricity production begins.

Electricity production period (30–35 years)

The compensation is calculated annually based on the amount of electricity produced by the wind farm and the market price of electricity*.
This compensation will be paid on an annual basis throughout the entire operational lifetime of the wind farm.

*For example, if the electricity market price is 60–90 EUR/MWh, the financial support would be EUR 1–1.6 million per year, provided that the wind farm’s capacity is 1,000 MW (1 GW).

offshore windmill park with stormy clouds and a blue sky, windmill park in the ocean. Netherlands . Europe, windmill turbines in ocean with blue sky, green energy concept

Environmental impact assessment

The offshore wind farm’s environmental impact assessment (EIA) is being conducted to evaluate the potential environmental, socio-economic, cultural and cumulative effects of the wind farm and, if necessary, identify mitigation measures.

The primary purposes of an EIA are to:

Identify the effects on environmental elements, such as land, soil, water, ambient air, climate, landscape and biodiversity and protected natural sites and their interrelationships;
Identify impacts on population, human health, well-being and property and cultural heritage;
Ensure a high level of environmental protection while also taking into account the environmental considerations in the project;
Avoid or reduce adverse effects on the environment;
Provide information to the Estonian Consumer Protection and Technical Regulatory Authority (the grantor of the superficies license) on the significant environmental impacts of the offshore wind farm and its electricity interconnection and on the selection of the most appropriate option for the proposed activity, which will avoid or minimise adverse effects on the environment and promote sustainable development.
Ensure compliance with legislation and pursuit of the best practices.

The EIA will take up to three years

April 9, 2024

Initiation of the superficies licence procedure and the EIA

June 2025

Publication of the EIA program

August 2025

Public discussion of the EIA program on Ruhnu and Saaremaa Islands

Autumn 2025

Revision of the EIA program

2025 - 2027

EIA studies and surveys

2027

Preparation and publication of the EIA report

Spring 2028

Decision on the EIA

About the developers

The offshore wind farm is being developed by Estonia Offshore Wind DevCo OÜ, which is a joint venture between Ignitis Renewables and Copenhagen Infrastructure Partners (CIP) for the development of the offshore wind farm at the Liivi 1 and 2 sites.

Ignitis renewables

Ignitis Renewables is an international green energy company operating in the Baltics and Poland. It focuses on developing green generation and green flexibility technologies. By developing onshore and offshore wind, solar, battery and power-to-x technologies, the company is implementing Ignitis Group’s strategic priority to deliver 4–5 GW of installed green capacities by 2030.

Copenhagen Infrastructure Partners

Founded in 2012, Copenhagen Infrastructure Partners P/S (CIP) today is the world’s largest dedicated fund manager in greenfield renewable energy investments and a global leader in offshore wind. The funds managed by CIP focus on investments in offshore and onshore wind, solar PV, biomass and energy-from-waste, transmission and distribution, reserve capacity, storage, advanced bioenergy, and power-to-x.

This includes the Growth Market Funds that focus on investments in large-scale and complex greenfield renewable energy infrastructure projects in high-growth middle-income markets with strong fundamentals for renewable development and significant impact potential. The funds target high-growth middle-income markets across Asia, Latin America and EMEA with strong fundamentals for renewable energy infrastructure investments with a combination of high economic and demographic growth, including an expanding middle class, leading to an accelerating electricity demand.

CIP manages 13 funds and has, to date, raised approximately EUR 32 billion for investments in energy and associated infrastructure from more than 180 international institutional investors. CIP has approximately 500 employees and 14 offices around the world.