Lithuania to Relaunch Second Offshore Wind Tender in June as Parliament Approves New Terms

Authorities

The Lithuanian Parliament has approved the updated conditions for the country’s second offshore wind tender, which was launched last year but paused in January so the government could re-evaluate the conditions. Lithuania’s Ministry of Energy said on 15 May that the tender would be (re)launched by mid-June.

The amendments to the Law on Renewable Energy were given the green light by the government in April and then went before the Parliament for the final go-ahead.

Following the final approval of the amendments, the procedure for indexing the transaction price won in the tender has been changed. The price is indexed for eight years from the date of confirmation of the winner of the tender, instead of 23 years, as was provided for in the previous tender conditions.

The winner of the tender will also be obliged to use Lithuanian ports for the offshore wind farm, if this is economically justified and the port can provide the necessary infrastructure and services. 

The Ministry of Energy says the amendments aim to ensure that the development of offshore wind energy brings benefits to consumers and has a positive impact on final electricity prices.

The amendments also ensure that, if consumers are required to contribute, their contribution should not exceed the benefits derived from the offshore wind farm. Any financial contribution from consumers to the offshore wind farm would only be made once the wind farm starts generating electricity, i.e. around 2033.

In addition, it is envisaged that the corporate tax paid by a potential developer can be used to cover the need for services in the public interest.   

Furthermore, the amendments unify the conditions for the transmission of electricity – the priority right for the transmission of electricity produced by an offshore wind farm over onshore wind and solar power plants is waived. This ensures balanced conditions for the development of offshore wind and onshore power plants, according to the Ministry of Energy.

The changes to the tender also establish that a competition would be considered successful if two or more bidders participate in it, a modification that was proposed following public consultations.

Lithuania plans to have two offshore wind projects with a combined capacity of 1.4 GW.

In 2023, the Lithuanian government awarded the development rights for the first 700 MW offshore wind project to a joint venture between Ocean Winds and Ignitis Renewables.

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