2482
Views

EU Awards $200 Million to Support Lithuanian Offshore Wind Project

Wind farm illustration for Lithuanian wind project
Illustration courtesy Ocean Winds

Published Oct 8, 2023 1:43 PM by The Maritime Executive

Last week, the European Commission (EC) approved $204 million as a support scheme for Lithuania’s offshore wind farms to bolster the country’s transition towards a net-zero economy. The scheme was approved under a new state aid framework adopted early this year to accelerate the green transition and reduce fuel dependency.

Lithuania had applied to the EC seeking support for the rollout of renewable offshore wind farms. The project to be supported under the scheme will be selected through a competitive bidding process for a specific area in the Baltic Sea, and will have a capacity of 700 MW.

Under this measure, the approved aid will take the form of a variable premium under a two-way contracts of difference (CfD) for a duration of 15 years. This will be calculated by comparing a reference price, determined in the tender offer of the beneficiary, as well as by the market price for electricity.

“The $204 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,” commented Didier Reynders, EC Commissioner in Charge of Competition policy.

By 2030, Lithuania has proposed to build two offshore wind farms in its EEZ in the Baltic Sea near Palanga. The two sites will have a capacity of approximately 1.4 GW and are expected to generate up to 6 TWh of green electricity per year, which would meet up to half of Lithuania’s current electricity demand.

One site is already underway after Lithuania announced winners of its first offshore wind tender in July. Ocean Winds and Ignitis Renewables won the tender with a bid price of $20 million.