Enefit Green and Sumitomo Corporation have agreed to terminate their partnership on the 1GW Liivi Bay offshore wind farm in Estonia.
The decision followed joint discussions on the country’s offshore wind outlook and current market and regulatory conditions.
Enefit Green said the lack of a state commitment to introduce contracts for difference or other long-term investment mechanisms made it unviable to continue at the same level.
Chairman Juhan Aguraiuja said: “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.”
He added that Enefit Green will complete permitting and environmental impact assessment work to preserve future opportunities, with further development to wait for “more certain times”.
Sumitomo said it valued Enefit Green as a trusted partner and appreciated joint efforts to advance offshore wind in Estonia.
Liivi Bay is planned to feature up to 84 turbines with a maximum total capacity of 1GW, producing as much as 4TWh annually.
It is located in the Gulf of Riga, 11km from Kihnu Island and 16km from Haademeeste.