Estonian government decided on splitting Gulf of Riga wind farm (Liivi), the most advanced offshore project in the Baltic States, from its to-date owner, state-owned power company Eesti Energia.

“During the budgeting phase, Eesti Energia owned the project, but now that the activity has progressed and extensive environmental and technological studies are being conducted, it is adequate to transfer the assets and rights related to the Gulf of Riga project to a separate legal entity,” Minister of Finance Annely Akkermann said on January 5 in a press release, as quoted by the ERR website.

The separated assets will be transferred to the newly formed business, of which Eesti Energia AS will continue to be the sole shareholder, the website said, noting that the separation will allow the Gulf of Riga project to be transferred to the renewable energy firm Enefit Green.

Estonian state owns a 77% stake in Enefit Green, while the remaining 23% debuted on Nasdaq Tallinn exchange in October 2021.

“Since the IPO in 2021 Enefit Green has been referring to the Gulf of Riga (Liivi) project as a project owned by Eesti Energia for which a memorandum of understanding (MoU) has been signed between Enefit Green and Eesti Energia,” Enefit Green reminded in a comment to the Estonian government decision.

In the memorandum, Eesti Energia agreed to offer Enefit Green “an opportunity to participate in the project and/or acquire the project on market terms,” the company continued.

As the result, the management of Enefit Green sees no significant impact of the Talinn’s decision on the value of Enefit Green’s shares.

The offshore wind farm project in the Gulf of Riga is the most advanced offshore wind development in the Baltic States to date. The environmental impact assessment and research to be completed by 2024, and the national specific plan for grid connection to be completed by 2026, are the next major milestones for the project.