Lithuania decides financing model for offshore wind

In: Windfarms
03/09/2020
The Lithuanian Ministry of Energy has submitted draft legislation to support the development of offshore wind energy in the Baltic Sea. As in other EU countries, it has been established that the development of wind energy will be financed using the contract for difference model, with the first auction scheduled for 2023.

In line with the Netherlands, Denmark and Germany, Lithuania envisions that the installation of transmission networks connecting offshore power plants will the responsibility of the electricity transmission system operator.

"Taking into account the experience of the European Union countries with the greatest wind energy and the recommendations of the working group, the developed legislation, which will create a clear and transparent regulatory environment for the development of offshore wind energy, will ensure a level playing field for all tenderers. The Ministry of Energy has been consistently preparing for the development of offshore wind in the Baltic Sea for several years now - starting with a feasibility study to assess the potential of offshore wind in the Baltic Sea and ending the process with an open international auction in 2023,”
commented Minister of Energy Žygimantas Vaičiūnas.

The Lithuanian Energy Agency has started the necessary preparatory work - preparation of a special plan, assessment of strategic consequences for the environment, wind measurement, bottom research and environmental impact assessment. All these preparatory works will be completed by the auction date provided for in the draft law.

For this legislation to enter into force, it must still be approved by the government and then adopted by the Seimas (parliament of Lithuania). It will also need to be agreed with the European Commission on compliance with state aid guidelines.

The Lithuanian government has previously announced plans to support the development of an offshore wind farm with a capacity of up to 700 MW in the Baltic Sea. The project is planned to be constructed by 2030 in a Baltic Sea territory nearly 30 kilometres from the shore. A wind farm of this capacity in the Baltic Sea is expected to produce approximately 2.5-3 TWh of electricity per year, which is nearly a quarter of Lithuania’s current electricity demand. It is estimated that wind farms of this capacity will pull in as much as EUR 1 billion in private investments. The territory planned in the Baltic Sea for the wind turbines covers an area of 137.5 km2, with a distance from shore of approximately 29 km, an average water depth of 35 m, and an average wind speed of approximately 9 m/s.


 

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