The Lithuanian National Energy Regulatory Council (NERC) has confirmed the joint venture between Ocean Winds and Ignitis Renewables as the winner of Lithuania’s first offshore wind tender after the partnership was selected in the auction in July and declared the provisional winner.
Ignitis Group, the parent company of Ignitis Renewables, says that the two companies will set up a joint venture company in Lithuania no later than three months after the announcement by NERC on 12 October. The joint venture company will be awarded the development and operation permit, granting the right to use the maritime area in the Baltic Sea for electricity production for 41 years.
Ocean Winds and Ignitis Renewables submitted the highest development fee bid in the tendering procedure, EUR 20 million. According to NERC’s announcement on 12 October , the tender winner must pay the fee to the state budget within 60 calendar days.
The official recognition of the Ocean Winds-Ignitis partnership as the tender winner has been made following the screening of compliance with national security interests.
Lithuania’s first offshore wind farm was put out to tender without an offer for state support and will operate under market conditions, with the developer to carry out site investigations and surveys at its own expense.
The site where the country’s first offshore wind farm will be built is located approximately 30–36 kilometres off Lithuania’s Baltic Sea coast and covers an area of approximately 120 square kilometres.
Subject to obtaining the relevant permits, contracting suppliers and securing financing, the project is expected to become operational by 2030.
The 700 MW offshore wind farm is estimated to be able to generate up to 3 TWh of electricity, which would meet up to 25 per cent of Lithuania’s current electricity demand.