The Lithuanian Ministry of Energy has proposed a temporary suspension of the ongoing offshore wind farm auction. The pause would allow for a review of the auction’s terms to ensure minimal impact on electricity prices for end-users. A draft resolution outlining these changes has been submitted for governmental and institutional consideration.
Given that the auction is already underway, the Ministry has requested an expedited review of the proposed resolution. Stakeholders are expected to submit their feedback within three working days from the resolution’s publication.
If the government approves the resolution, the auction procedures will be relaunched in accordance with the timelines and guidelines set out in the country’s Renewable Energy Law. This process is intended to maintain transparency and fairness while addressing emerging concerns about the auction framework.
Lithuania’s Ambitious Plans for Offshore Wind Development
Last year, Lithuania made significant strides in its offshore wind energy ambitions. In July 2024, the Seimas approved amendments to the Law on Energy from Renewable Sources, introducing critical measures to ensure the competitiveness and feasibility of offshore wind projects. One of the key changes was the adjustment of electricity sale prices for inflation, ensuring long-term financial viability for developers and energy buyers alike. Additionally, the registration period for tender participants was extended to 120 calendar days, providing more flexibility for potential investors.
The tender conditions also allowed developers to choose whether to implement the project with or without state support. For those opting for support, participants could compete for subsidies covering all or part of the energy produced. To maintain a balance between affordability and investment attractiveness, the National Energy Regulatory Council (VERT) was tasked with defining the minimum and maximum electricity prices within which bids could be submitted.
The proposed offshore wind farm is projected to cover approximately a quarter of Lithuania’s current electricity demand. The planned farm, spanning an area of 136.39 km² and situated 30 km from the Lithuanian coast, is part of a larger initiative to build two offshore wind farms with a combined capacity of 1.4 GW. To prepare for these projects, the Ministry of Energy has been actively developing infrastructure plans, including offshore and onshore connections. Key steps such as environmental impact assessments, geophysical and geotechnical seabed surveys, and wind speed and hydrometeorological measurements have already been completed.
The outcome of this review will not only impact Lithuania’s renewable energy trajectory but could also influence similar projects across the region as European nations continue their collective transition to carbon neutrality. Further updates on the auction’s progress and revised terms are anticipated in the coming weeks.
Source: Lithuanian Ministry of Energy
