Lithuania Outlines Offshore Wind Auction Plans
The Lithuanian Government has approved the requirements for developers for the country’s first-ever offshore wind auction, expected to be announced by the National Energy Regulatory Council (VERT) on 30 March.
According to the government’s decision, prospective bidders will have to have an average revenue of at least EUR 250 million in the last three years and at least 20 per cent of the project value in equity.
In addition, the developer will have to provide evidence that the company has implemented or acquired the right to develop at least one offshore wind project of at least 150 MW.
The tender is expected to be won by the developer who offers the highest development fee to the state.
The successful bidder will be required to contribute at least EUR 5 million to the environmental protection of the Lithuanian maritime area.
Once the offshore wind farm is built, the developer will be obliged to make an annual contribution (EUR 1 per 1 MWh of electricity generated) to the communities in the vicinity of the park, the government said, which could amount to around EUR 3 million per year.
The government outlined that the approved requirements provide incentives to reduce emissions of greenhouse gases that contribute to climate change during the construction of the offshore wind farm. At least 3 per cent of building work will have to be carried out by small and medium-sized enterprises, the government said.
The developer will have to carry out all necessary research, an environmental impact assessment, and other necessary actions for the development of the wind farm. Also, the winner of the tender will be responsible for the connection to the electricity transmission networks on land and for the imbalance caused by the generated electricity.
The 137.5-square-kilometre site in the Baltic Sea, which the Lithuanian Government identified two years ago, is located some 29 kilometres off the country’s coast, in water depth of around 35 metres.
The offshore wind farm will have a capacity of 700 MW and is expected to be fully commissioned by 2028.
Another tender for the development of the offshore wind farm is planned to be announced in the fall of this year.
The two offshore wind farms would cover approximately half of Lithuania’s current electricity demand.
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