July 17 (Renewables Now) - Estonian energy producer Nelja Energia AS has halted plants for 1,100 MW of offshore wind power capacity until at least 2020 as it would not be competitive at market prices in Estonia and Lithuania.
The company intended to build a large offshore wind complex, consisting of a 700-MW park near Estonia’s Hiiumaa island in the Baltic Sea and a 400-MW facility off Lithuania. In its annual financial report for 2016, published last week, Nelja Energia said that the delivery of offshore wind projects would be excluded from its business plan until 2020.
Martin Kruus, CEO of the renewable energy producer, told the Baltic News Services (BNS) that Nelja Energia will not be able to add more wind power capacity without using subsidies, given the current market prices in the Baltic region which stand at around EUR 30 (USD 34.4) per MWh. Thus, it will rather focus on the technical development of projects to a certain point at which they can be resumed as soon as considered appropriate.
At the end of 2016, the Estonia-based firm, which is the biggest energy producer in the Baltic States, operated 280 MW of wind parks. Its wind farms produced 615 GWh of electricity last year. Nelja Energia has 214 MW of wind projects in its mid-term development pipeline.
(EUR 1.0 = USD 1.147)