The Latvian Minister of Economics Jānis Vitenbergs and Estonian Minister of Economic Affairs and Infrastructure Taavi Aas have electronically signed a Memorandum of Understanding between the Ministry of Economics and the Estonian Ministry of Economic Affairs and Communications on the joint project of the Latvian and Estonian offshore wind park for energy generation from renewable energy sources. The aim of the offshore wind park project is to explore and develop the territory, as well as the related infrastructure for the creation of a wind park.
The Minister of Economics Jānis Vitenbergs: “The development of wind energy in the coming decade is very important for the Baltic States. We agree with our Estonian colleagues that we can achieve higher benefits with lower costs when implementing the joint project. The Memorandum of Cooperation marks the first steps towards elaborating the project and carrying out a cost-benefit analysis. It will then be possible to decide on further implementation of the project. It is envisaged that the wind park would be built by project developers that would be identified within the framework of an open competition.
An analysis of the possibilities for the development of offshore wind parks in the Baltic Sea region has identified the potential for cost-efficient electricity generation through transnational cooperation projects. At the same time, the development of wind parks would promote the development of large-capacity electricity generation plants further from populated areas.
The Estonian Minister of Economic Affairs and Infrastructure Taavi Aas emphasises: “Combining the forces of neighbouring countries in implementing important energy projects will help to find the most appropriate and cost-efficient solution. This kind of cooperation is unique in the world – two countries will pool their knowledge to improve grid connections and security of supply in the region. At the same time, cross-border cooperation will make it possible to apply for European Union co-financing for network construction.”
In 2019, representatives of the Estonian government opened negotiations with the Latvian Party on possible joint implementation of an offshore wind park project. In December 2019, meeting with the Estonian Minister of Economic Affairs and Communications, a conceptual agreement was reached on the implementation of such a project. Subsequently, the Ministry of Economics, in cooperation with the Estonian Ministry of Economic Affairs and Communications, started work on the project. The first step was identification of the need to develop a memorandum of understanding to note the project’s objectives, importance and key implementation principles and steps.
The purpose of the Memorandum of Understanding is to promote the development of joint offshore wind areas between Estonia and Latvia and to make it possible to build offshore wind parks in order to increase renewable electricity generation and reduce greenhouse gas emissions. It also intends to promote ensuring cost-efficient national contributions to the achievement of the EU’s renewable energy target and to ensuring sustainable, secure and affordable energy supply in Estonia and Latvia.
The Memorandum of Understanding establishes a non-binding framework for the joint management and financing of the offshore wind park project between the Ministry of Economic Affairs and Communications of Estonia and the Ministry of Economics of Latvia. The exact allocation of costs and benefits will be determined on the basis of the results of the feasibility study and the cost-benefit analysis. It is expected that co-financing of the Connecting Europe Facility (CEF) might be raised for the development of the project and the creation of infrastructure, and it is therefore planned to send an application for European Union funding within CEF for research activities in the near future. The project aims to create a high-capacity (at least 700-1000 MW) offshore wind park by 2030.
The implementation of the joint Latvian and Estonian offshore wind park project is included in the National Energy and Climate Plan of Latvia 2030.