Estonia is moving forward with its offshore wind strategy through a well-defined licensing model, consistent foreign investment and newly designated areas, such as the Saare 7 site. Its auction is expected to take place in June of this year. The body responsible for issuing permits is the Consumer Protection and Technical Regulatory Authority (CPTRA).

“To develop an offshore wind farm in Estonia, four different licences are required: a superficies licence, a building permit, a water permit and an occupancy permit,” explains Merilin Kraun, Project Manager of the Building Right Division at CPTRA, during a conversation with Strategic Energy Europe. She adds: “So far, none of these permits have been issued; we are currently processing the superficies licences.”

A standardised legal framework

The licensing process is governed by the Building Code, which sets out detailed requirements for applicants. “The developer must submit information regarding the purpose of the construction, height, depth, projected capacity of the wind farm, a list of studies to be conducted, and a financing plan for the project,” Kraun outlines. Once reviewed, applications are forwarded to other national authorities, such as the Ministry of Defence and the Environmental Board, whose feedback often results in required modifications.

One notable element is the fixed price for auctioned surfaces: 15,000 euros per square kilometre, regardless of the location or timing. “This base price is set by law and does not change between tenders. It is determined, and there are no plans to revise it,” Kraun confirms.

Dominant foreign participation

Of the seven auctions conducted so far, five were successful — and notably, all of them were awarded to foreign companies, including Lithuanian, Norwegian and the most recent French winner, Oxan Energy. Kraun notes this is not a recent trend: “The interest from foreign companies has been present for several years. Estonia is a small country, and we have few domestic firms capable of developing offshore wind farms,” she explains.

The two unsuccessful tenders received no bids. “We believe those areas were simply not attractive enough due to size or location,” she adds, showing how site-specific variables influence auction outcomes.

Upcoming auctions and open processes

At least two new tenders are expected this year, the first of which is the Saare 7 site, located west of Saaremaa Island. According to CPTRA, this area spans 15 890 hectares, and two applications for superficies licences have already been submitted, triggering the competitive process. As part of these licensing procedures, developers carry out necessary preliminary studies ahead of potential wind farm construction.

Kraun clarifies that although the Environmental Impact Assessment (EIA) process has legal deadlines — 18 months for the programme and two years for the final report — the timeline for granting the superficies licence itself is open-ended, depending on how smoothly the process advances.

Regional cooperation and infrastructure challenges

Cross-border cooperation is gaining importance. Kraun highlights Elwind, a joint project with Latvia that includes two interconnected offshore zones — one in each country. “This project aims to enhance energy independence in the region and to strengthen the regional electricity market,” she states.

However, the most immediate technical challenge is grid integration. Estonia’s infrastructure is not yet prepared to connect all proposed projects. “We have many applications, but we lack the capacity to connect them all. Strengthening the grid and establishing new links is essential,” says Kraun. The national transmission system operator is currently developing new interconnections with Latvia and Finland to expand export and balancing capabilities.

As for whether the electricity generated will serve Estonia or other countries, the law remains open. “There is no requirement for the electricity to stay in Estonia. Developers must specify the destination of the cables in their application and submit the relevant maps. All export options are currently permissible,” she explains.

Kraun confirms Estonia’s commitment to an investor-friendly, legally transparent offshore wind sector, aligned with the Baltic region’s renewable energy goals. With well-structured tenders, high foreign participation and grid expansion underway, wind power is rapidly reshaping Estonia’s energy landscape.