Orsted and regional energy supplier Enefit have signed a memorandum of understanding (MoU) paving the way for them to jointly develop offshore wind projects in the Baltic Sea.
The MoU also sets out “a vision to jointly move towards delivering the first offshore wind farm in the Gulf of Riga in the Baltic Sea”, before 2030.
In September 2020, the Latvian and Estonian governments signed an MoU for a joint offshore wind farm.
Subject to a supportive regulatory framework for offshore wind being in place, Orsted and Enefit said they aim to deliver this before 2030.
As part of the MoU, Orsted and Enefit intend to establish a joint venture for the development of offshore wind opportunities in the Baltic countries, including the Liivi offshore wind project in the Estonian part of the Gulf of Riga.
Orsted has also submitted an application for an area in Latvian waters next to the Liivi site.
Through these sites, the partnership aims to pursue a cross-border hybrid approach, which will connect an offshore wind farm to both Latvia and Estonia and enable the use of the offshore wind transmission cables as an interconnector between the two countries.
Orsted regional Continental Europe head Rasmus Errboe said: “We are very excited about teaming up with Enefit, with the goal of developing offshore wind opportunities in the Baltic countries. With the right regulatory framework in place, offshore wind can deliver large-scale green energy in Estonia and Latvia before 2030.
“The sheer size of offshore wind farms makes them ideal for cross-border hybrid solutions, and we commend the Estonian and Latvian governments for their leadership in advancing regional corporation on large-scale renewable energy production.
“The Baltic Sea area is becoming a centre for offshore wind build-out which will contribute significantly to the decarbonisation efforts of both the region and the European economy.
“The Baltic countries can to a large extend be powered by renewable energy from offshore wind, and we look forward to team up with Enefit to realise this potential.”
Offshore wind offers a “clear green path forward” when Estonia and Latvia desynchronise from the Russian grid, and Estonia looks to phase out shale oil as part of its decarbonisation efforts.
In addition to the cooperation within Estonian and Latvian governments developing offshore wind, the EU’s offshore renewable energy strategy proposes to increase Europe’s offshore wind generation capacity from the current 12GW to at least 60GW by 2030 and to 300 GW by 2050.
The Baltic Sea can make a “significant contribution” to this target with a potential above 90GW.
In 2020, the EU member states around the Baltic Sea signed the Baltic Sea Offshore Wind Declaration to accelerate the build-out of offshore wind in the Baltic Sea to reach both national and international climate targets.