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diciembre 9, 2024

Estonia launches a key auction for an offshore wind farm of up to 1200 MW at Saare 1

The Consumer Protection and Technical Regulatory Authority (TTJA) has announced an auction for the development of an offshore wind farm in Saare 1. This project, with a potential capacity of up to 1200 MW, is a cornerstone of Estonia’s National Energy and Climate Plan (NECP). The country, which currently has over 1200 MW of installed renewable capacity, aims to double this figure by 2030.
By Lucia Colaluce

By Lucia Colaluce

diciembre 9, 2024
Estonia

The Consumer Protection and Technical Regulatory Authority (TTJA) has invited bids for the development of a wind farm in the Saare 1 area, located approximately 60 km west of Saaremaa. This landmark initiative is part of Estonia’s strategy to establish itself as a leader in renewable energy within the Baltic region.

The auction is scheduled to take place between 21 and 23 January 2025 via the national online auction platform. The starting price is set at 1,320,000 euros, with a minimum bid increment of 50,000 euros. To participate, companies must submit the required documentation and pay a 26,400 euro deposit to the TTJA.

The first auction for the Saare 1 area, held in February 2024, failed to materialise due to a lack of bids. A similar situation occurred in July 2024 with the auction for the Saare 3 area, as reported by offshorewindpoland.pl.

Saare 1.

In contrast, the auctions for the Saare 2.1 and Saare 2.2 areas were successfully concluded, enabling the development of offshore wind installations with a combined capacity exceeding 2.4 GW. Both areas were awarded to the Norwegian company Deep Wind Offshore AS.

Additionally, in December 2023 and January 2024, TTJA organised auctions for offshore wind farms in the Liivi 1 and Liivi 2 areas. In these tenders, the winner was «Ignitis renovables projektai 6», operated by the company UAB.

Participants and project scale

Three companies have been approved to compete in the auction: CI Estonia Wind GmbH & Co. KG, OÜ Utilitas Wind, and Oxan Energy. These entities have submitted project proposals with installed capacities ranging between 900 and 1200 MW, marking one of the most significant offshore wind energy developments in the region.

The Saare 1 area, covering a surface of 88 km², has been identified as an optimal site for wind turbine installations under Estonia’s maritime spatial plan. This project is expected to make a substantial contribution to the country’s goal of increasing the share of renewables in its energy mix.

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Environmental commitments and project timeline

The project comes with stringent sustainability requirements. The winning bidder must initiate the construction permitting process and environmental impact assessment within 90 days of the auction announcement. Additionally, a comprehensive environmental impact assessment programme must be submitted within 18 months, followed by a full report within 24 months.

The TTJA, which has previously overseen four successful maritime zone auctions, emphasises that all offshore wind projects must meet high environmental standards and comply with construction regulations.

Renewables progress in Estonia

The offshore wind farm at Saare 1 plays a crucial role in Estonia’s National Energy and Climate Plan (NECP), which aims to boost renewable generation and reduce greenhouse gas emissions. According to the Ministry of Economic Affairs and Communications, Estonia seeks to achieve a 50% renewable energy share by 2030 and progress towards carbon neutrality.

In 2022, Estonia’s installed solar capacity exceeded 525 MW, nearly doubling from 335 MW in October 2021. Solar energy has become a vital component of Estonia’s renewable growth, complementing its expanding wind energy sector.

Estonia’s total renewable energy capacity currently stands at 1,178 MW, representing 36.55% of its total electricity generation. The Saare 1 project has the potential to significantly enhance these figures, establishing Estonia as a key player in offshore wind energy within the Baltic region.

A Strategic opportunity for the energy sector

The development of the Saare 1 offshore wind farm underscores Estonia’s position as an emerging leader in offshore wind energy. The auction results are expected to not only increase the country’s renewable capacity but also attract international investment and drive technological innovation.

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