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THE BALTIC SEA IS A REGION THAT SETS THE TONE FOR OFFSHORE WIND DEVELOPMENT

The study concluded that the Baltic Sea is a region that sets the tone for offshore wind development

What does this mean for industry representatives and investors?

In the study “Life-cycle of an offshore wind farm in the legal framework: the case of Latvia,” which analyzes the Latvian case in the broader context of the Baltic Sea and compares the legal framework and development trends in the region, it was concluded that the Baltic Sea countries – Estonia, Latvia, Lithuania, and Poland – are rapidly moving forward with the development of offshore wind projects. The Baltic Sea countries – Estonia, Latvia, Lithuania, and Poland – are rapidly advancing in the development of offshore wind projects. The region is becoming one of the most dynamic markets in Europe, but legal certainty, the implementation of the revised Renewable Energy Directive (RED III) requirements, and clear investment regulations are crucial. The development of offshore wind power in the Baltic Sea is not only a tool for achieving climate goals, but also an investment opportunity with strategic importance for the energy security of the entire region.

Estonia – transparent licensing system with a digital geoportal

Estonia has introduced an innovative building rights license (superficies license) that combines several permits into one document and reduces bureaucracy. The Consumer Protection and Technical Regulatory Authority (TTJA) acts as a single point of contact and has created a digital geoportal that ensures transparency in the licensing process.

By 2025, rights to develop offshore wind projects have been granted for more than 4.7 GW of capacity (Ignitis Renewables and Deep Wind Offshore projects).

In May 2025, the government approved the first historic building permit for an offshore wind farm near Saaremaa Island (up to 1.4 GW). Eleven other projects are currently undergoing the same process. This sends a clear signal: Estonia is ready for large investors, although a few unsuccessful auctions reveal that the market also requires flexible support mechanisms.

Latvia – on the path to reform, but still without a specific offshore wind energy law

The regulations currently in force in Latvia (e.g., Cabinet Regulation No. 631) were originally designed for the extraction of mineral resources and are not suitable for the development of modern offshore wind energy. There is still no specific law for offshore wind energy. The ELWIND draft law has not yet been adopted by 2025, which is slowing down development.

A positive step was the establishment of the Energy and Environment Agency (EVA) in February 2025, which brings together two institutions and acts as a single point of contact. However, on August 26, 2025, the Cabinet of Ministers adopted a decision to liquidate the EVA (Cabinet Order No. 533). From October 1, its functions, rights, and obligations will be transferred to the State Environmental Service, with most of the positions being retained. As a result, the institutional basis of the single point of contact has changed twice in a short period of time, raising the question of ensuring predictable administration for investors.

In February 2025, the government moved the ELWIND research area further out to sea (200 km²), responding to public initiative and environmental assessment. The project, with a capacity of up to 2 GW, is planned for completion by 2035. This confirms the importance of public involvement.

Environmental requirements pose an additional challenge: The LIFE REEF project (2020–2025) has identified three potential Natura 2000 marine areas in the Latvian EEZ (Zēģelnieku shoal, Alku shoal, Papes kalva), which partially overlap with the wind farm research areas. According to information from VARAM, the update of the Maritime Spatial Plan 2030 will also be based on these results.

Lithuania – the first Baltic country to fully implement RED III

On June 25, 2025, the Seimas adopted a package of five laws, making Lithuania one of the first EU countries to fully transpose RED III. The result: clear permit deadlines (max. 36 months for offshore projects), overriding public interest status, and accelerated development zone mapping by February 2026.

The harmonization of the Electricity and Construction Laws means that a technical proposal and working draft will often suffice to start construction. This significantly speeds up grid connections and project implementation.

Lithuania held its first 700 MW auction (Ignitis Renewables and Ocean Winds) in 2023. The conditions for the second auction were improved, and in 2025 it was reopened with a Contract for Difference (CfD) model and a price cap of EUR 125/MWh, ensuring competition and consumer payments only after the park becomes operational (around 2033).

Poland – regional leader with actual construction underway

Poland is the only country in the region where construction has actually begun. In July 2025, the first turbine was installed at the Baltic Power park (ORLEN and Northland Power), which will provide up to 3% of the country’s electricity demand. ORLEN’s overall goal is to develop approximately 5.5 GW of offshore wind capacity.

A special law for offshore wind has been in force in Poland since 2021. The country has identified up to 90 project sites with a potential capacity of up to 33 GW. Amendments have been adopted in recent years: differentiated price caps, more flexible rules (e.g., use of a single substation for multiple projects), digital maps, and simplified environmental procedures. This creates a stable and predictable environment for investors.

Conclusions for industry representatives

  • The Baltic Sea region is in a breakthrough phase, especially in Poland and Estonia.
  • Lithuania is demonstrating legal leadership by fully implementing RED III.
  • Latvia is still lagging behind, but the creation of a single point of contact and the progress of ELWIND show positive steps.
  • Critical for investors: full implementation of RED III, single points of contact, digitization, and public engagement.

Research team:

Leila Neimane, University of Latvia, Faculty of Law, Institute of Legal Science

The research is financed by the Recovery and Resilience Facility project “Internal and External Consolidation of the University of Latvia” (No.5.2.1.1.i.0/2/24/I/CFLA/007).

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