EC Clears EUR 193 Million Support Scheme for Lithuanian Offshore Wind Farm

Business & Finance

October 6, 2023, by Adnan Memija

The European Commission (EC) has approved a EUR 193 million offshore wind support scheme in Lithuania to foster the country’s transition towards net zero.

Wind turbines reaching above clouds — *For illustrative purposes only; Source: Lithuanian Ministry of Energy*

The project, to be supported under the scheme, will be selected through a competitive bidding process for a specified area in the Baltic Sea with a capacity of 700 MW.

Under this measure, the aid will take the form of a variable premium under a two-way contract for difference (CfD) for a duration of 15 years.

The beneficiary will be entitled to receive aid equal to the difference between the strike price and the market prices for electricity, but will also be required to pay the difference between the two prices to the state as soon as the market price is above the strike price.

“This €193 million Lithuanian scheme will enable Lithuania to accelerate the rollout of green energy projects, such as offshore wind farms. This will contribute to the EU Green Deal’s ambitious energy and climate targets, without unduly distorting competition in the Single Market,” said Didier Reynders, commissioner in charge of competition policy.

As reported at the beginning of July, Lithuania completed its first 700 MW offshore wind tender, with Ocean Winds and its strategic partner, Ignitis Renewables, announced as the provisional winners.

At the end of 2022, the Lithuanian Ministry of Energy brought forward an amendment package to the Laws on Renewable Energy and Electricity which facilitates the country’s second 700 MW tender and accelerated tendering procedures.

It is expected that the second offshore wind farm, planned to be put out to tender this autumn, could produce its first power as early as 2028.