Economics

The construction of Hiiumaa Offshore Wind Farm is planned to finance by using the co-operation mechanisms regulated by the EU Renewable Energy Directive.

Estonia was the first EU Member State who reached its 2020 renewable energy targets already in year 2011. In the same time there are Member States who for one reason or another cannot reach their national binding targets in renewable energy by 2020. In this case a Member State has the possibility to use flexible co-operation mechanisms described in the Renewable Energy Directive. 

The use of co-operation mechanisms means that a Member State can ask another Member State to produce renewable energy for them by funding such installations and getting green statistics in return. This way renewable energy targets are achieved more efficiently. Cross-border co-operation between the Member States can be done by statistical transfers, opening up its support schemes or by developing joint projects. 

The Estonian Energy Market Development Plan 2030+:
„Given Estonia’s good wind conditions, the availability of biomass and the number of the projects in the pipeline the local renewable energy developers have very good opportunities for flexible co-operation between other countries to develop renewable energy generation units.“

Nelja Energia in cooperation with the Ministry of Economic Affairs and Communications is developing European Union renewable energy cooperation mechanisms that allow realizing large-scale wind power projects with pan-European financing. Please see more information here.

Read more about the topic here.

Depending of the exact capacity, the Hiiumaa Offshore Wind Farm will produce 3-5 TWh per year with an annual turnover of 170 – 250 mln euros. The investment will be between 1,7 – 2,5 bln euros and half of that goes for the turbine technology, and two quarters go to the substructure and grid connection.