The Saare-1 project, led by Oxan Energy, marks a milestone in Estonia’s energy transition and the broader Baltic region. This floating wind farm, with a capacity of 900 megawatts (MW), is not only the first of its kind in the country but also a pivotal step towards Estonia’s goal of becoming a net exporter of renewable electricity by 2035. Nicolas Paul-Dauphin states, “The primary objective is to supply electricity to the Baltic nation, starting with Estonia.”

The project, which has secured a 50-year lease concession, is in its early development stages. This includes environmental impact assessments (EIA) and engineering studies, with a financial decision expected by 2031 and commissioning scheduled for 2033. “The idea is to reach a financial decision in 2031, and then begin providing electricity to Estonia and, more broadly, the Baltic platform,” Paul-Dauphin commented to Strategic Energy Europe.

Saare-1’s Impact on Estonia’s Energy Transition

Estonia has emerged as a key player in the shift towards clean energy in Northern Europe. This wind project is particularly significant, as it has the potential to cover up to one-third of the country’s electricity demand. “Estonia is on the path to producing much more renewable electricity than it needs, becoming a significant player in the renewable electricity space in the Baltic region,” explains Paul-Dauphin.

The country has set an ambitious goal of achieving 100% renewable electricity by 2030. “ Estonia’s objective is to achieve 100% renewable electricity and beyond that, to become a net exporter of electricity,” adds Paul-Dauphin. This commitment positions Estonia as a regional leader, setting an example for other Baltic countries.

Why Oxan Energy Was the Sole Bidder

The Saare-1 project was awarded to Oxan Energy as the only bid submitted in the auction organised by Estonia’s Consumer Protection and Technical Regulatory Authority (CPTRA), for 1.32 million euros, equal to the starting bid. Despite initial interest from other companies, Oxan Energy was the sole company that formalised its proposal.

Paul-Dauphin clarifies, “We were the only ones to submit a bid, but not the only participants.” Utilitas and Luxcara were also prequalified but decided not to bid. One of the primary reasons for the limited participation was the uncertainty surrounding the auction model. “This project does not include a Contracts for Difference (CFD) mechanism, which poses a significant risk for some players,” he explains.

Moreover, the project’s size—equivalent to one-third of Estonia’s electricity consumption—raises questions about how the generated electricity will be distributed. “For us, this project is a great opportunity, but for others, it may seem riskier, and that likely influenced the low competition in this auction,” Paul-Dauphin elaborates. Nevertheless, the strategic award of Saare-1 reinforces Oxan Energy’s commitment to renewable energy development in Europe.

The Strategic Bet of Oxan Energy

Despite being based in France, Oxan Energy has found Estonia to be a strategic location for investment in floating wind energy. According to Paul-Dauphin, the proximity and integration of Estonia within Europe make it a natural choice. “Estonia is very integrated into Europe. Although it is not a large country, the potential of the Baltic Sea as a regional platform is immense,” he notes.

The Baltic Sea has an estimated capacity of 10 gigawatts for offshore wind installations, representing a significant opportunity for Oxan Energy and other players in the sector. Paul-Dauphin highlights that the company views Estonia not just as a local market but as part of a regional platform that includes Poland, Finland, Sweden, and even Germany. “The Baltic Sea holds great potential for offshore wind energy, not just for individual countries, but for the entire region as an integrated system,” he emphasises.

Advantages of Floating Wind Technology

The Saare-1 project will utilise floating wind turbines, an innovative technology that offers multiple advantages over fixed-bottom turbines. “Floating turbines allow installation far from the coast, avoiding opposition from coastal communities and offering more flexibility in location, regardless of seabed conditions,” explains Paul-Dauphin. This is particularly relevant in the Baltic Sea, where depths can reach up to 85 metres, exceeding the limits for fixed-bottom turbines.

Additionally, Paul-Dauphin underscores the global potential of floating wind energy. “Eighty per cent of offshore wind zones worldwide will be floating in the future. This opens up the possibility of installing hundreds of wind farms far from the coast and using the electricity produced for activities like hydrogen production,” he says.

Looking Ahead: Oxan Energy’s Global Expansion

The success of the Saare-1 project is just the beginning of Oxan Energy’s plans to expand its footprint in the renewable energy sector. In addition to being prequalified for a multi-GW tender in France, the company focuses on emerging markets with untapped potential. “We are pioneers in offshore wind, especially in countries where there is still uncertainty and risk. Our focus is on markets like Italy, Spain, Portugal, Greece, as well as South Asia, and several South American countries like Chile and Argentina,” Paul-Dauphin notes.

This strategic approach positions Oxan Energy as an agile player that complements large companies in emerging markets. Saare-1 will serve as a replicable model for other nations seeking to diversify their renewable energy sources and strengthen their energy independence.