No takers as offshore wind lease auction flops

Smaller area adjacent to Estonian sites won by Norwegian developer Deep Wind Offshore find no bidder

Estonian climate minister Kristen Michal.
Estonian climate minister Kristen Michal.Photo: European Union

No bids were made in the latest Estonian sea lease auction for offshore wind, the Baltic country’s consumer protection and technical regulatory authority (CPTRA) said.

The regulator therefore won’t initiate a so-called licensing procedure for the 20.1 square kilometre Saare 3 area.

Norwegian developer Deep Wind Offshore and Latvian developer OÜ Utilitas Wind had both qualified to participate in the auction and paid a €6,030 deposit for it, but neither of them made a bid. The starting price for the auction was €301,500.

Estonia is pushing for offshore wind in an effort to rid itself of the need for Russian energy imports and to phase out the usage of rather polluting shale oil, an indigenous energy source.

Deep Offshore Wind last month had emerged as the winner of the much larger Saare 2.1 site (164km2) located 30km west of Saaremaa Island in the Baltic Sea, for which it was the only bidder and won the lease with the starting price of €2.5m.

That site according to the regulator could accommodate an 840MW to 1.2GW offshore wind farm, but water depths range from 29 to 66 metres, which likely makes the area more apt for floating wind.

The developer has also secured the Saare 2.2 site, which could fit a 1.56GW to 2.2GW project.

The now-flopped Saare 3 concession would have been for only 120 to 260MW.

Previous Estonian sea lease auctions, for the Liivi 1 and 2 sites, were won by a consortium of Danish renewables financier Copenhagen Infrastructure Partners (CIP) and Lithuanian developer Ignitis Renewables. Those projects in the Gulf of Riga could host up to 1.5GW and 1.4GW of offshore wind respectively.
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Published 8 July 2024, 13:45Updated 8 July 2024, 14:09
EuropeBaltic SeaEstoniaDeep Wind Offshore