Latvia’s Minister for Economics Janis Vitenbergs and Estonia’s Economy and Infrastructure Minister Taavi Aas have electronically signed a Memorandum of Understanding on the joint project of the offshore wind farm for energy production from renewable energy sources.
“The development of wind energy over the next decade is very important for the Baltic States,” said Minister Vitenbergs. “We agree with our Estonian counterparts that we can achieve higher benefits with lower costs with implementing a joint project. The Memorandum of Cooperation marks the first steps towards identifying the project and carrying out a benefit-cost analysis. And only after it we can decide on further implementation of the project. It is expected that the wind park would be built by project developers identified in the framework of open competition.”
The project aims to create a high capacity (at least 700-1000 megawatts) offshore wind park by 2030, which is up to 20 per cent of the power consumption of the two countries. The project will also serve as a proof of concept for hybrid asset consisting of the dual-use transmission network and off-shore wind park.
“Good neighbours joining forces in major energy projects is the reasonable and cost-efficient thing to do,” added Minister Aas. “This kind of cooperation is unique in the world, as two countries will combine their knowledge to improve their grid connections and the security of the supply in the region. It’s equally important that cross-border cooperation makes it possible to apply for European Union co-funding for the construction of the grid.”
The joint project makes it possible to attract investments in offshore wind farms to the region and makes connecting to the grid more affordable for others also. This is also a good opportunity for knowledge transfer from North-Sea Energy Cooperation.
After the states have carried out the necessary studies like environmental impact assessment, they carry out an auction for the superficial license. Estonia and Latvia will split the costs and income of the project equally.
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