"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 in a press release.

"A similar split happened in 2020 for the Tootsi wind farm project," Akkermann explained.

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

The capacity of the planned offshore farm ranges between one and two gigawatts. Once finished, the park could generate annually up to eight terawatt-hours of electricity.

Under the State Assets Act, government authorization is required for the division of a state-owned corporation. As a result of the split, a portion of the assets of the public limited company, along with all rights and duties associated with asset ownership, will be transferred to the newly formed business, of which Eesti Energia AS will continue to be the sole shareholder.

This solution permits a more efficient use of co-financing opportunities and the involvement of partners in the project's growth.

Eesti Energia is a state-owned company that operates in the energy sector, with one of its primary activities being the production of renewable energy. The company's approved strategy foresees that the renewable and alternative energy will account for 62 percent of Eesti Energia's electricity production by 2026. The strategy anticipates an increase in the share of electricity produced from renewable energy sources, with wind energy playing the most important role in meeting this target.

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