TALLINN - During the Baltic and Nordic Energy Summit held in Tallinn on Nov. 28 and 29, regional energy companies discussed the developments in transitioning to renewable energy in Northern and Baltic countries, with one of the key speakers, Thorvald Spanggaard, vice president and project development director of Danish renewable energy developer European Energy, highlighting that the Baltic states have a competitive advantage in the global renewable energy market.
Participants at the summit agreed that the future of renewable energy development should not focus solely on offshore or onshore wind energy projects. Instead, they should strive for a balanced approach, including innovative and hybrid solutions, to enhance efficiency and gain the support of countries in risk-sharing, according to European Energy.
Spanggaard sees the Baltic states as an attractive market for developing renewable energy projects and power purchase agreements.
"The Baltic states have a favorable business climate and higher electricity prices compared to their neighboring countries in the Nordics. Situated between the highest and lowest electricity markets in Europe, processes tend to move faster in the Baltics, thanks to abundant wind and solar resources and efficient grid connections," he said.
Spanggaard believes that the Baltic region still has significant potential in the renewable energy sector, but it competes with the rest of the world.
"To continue the green transition, it's important to attract financial and industrial investors, developers, and supply chain providers to the region. Developing a market of system services across the Baltic states and continuing infrastructure investments in electricity grids, cross-border connections, and planned hydrogen projects are essential. With a common and stable regulatory framework and corresponding infrastructure investments, the Baltic states could become a hub for companies looking to decarbonize their production, whether through electrification or e-fuels," he concluded.
In his presentation at the summit, Spanggaard also confirmed European Energy's ongoing commitment to developing various renewable energy projects in the Baltic states. European Energy builds wind and solar parks worldwide and has been rapidly expanding its role in the Baltic renewable energy market. Starting from 2023, European Energy will supply Baltic companies with 3.8 terawatt-hours of green energy produced in Lithuanian wind parks through the largest green energy purchasing agreement in the Baltic states, signed with the Estonian state-owned energy group Eesti Energia.
This year, European Energy further solidified its dedication to offshore wind farm development in the Baltic states by partnering with Norwegian company Vargronn. The companies have about 500 megawatts of offshore wind developments transitioning to the next stage and around 4 gigawatts of early-stage developments, focusing on upcoming tenders in the Baltic states.
In addition to offshore wind energy, European Energy has nearly 3 gigawatts of renewable energy projects in development in Lithuania, as well as 306 megawatts of onshore wind parks and 78 megawatts of solar parks already in operation.