The Lithuanian Ministry of Energy has launched a public consultation on proposed amendments to the Renewable Energy Law, aimed at ensuring that the development of the country’s first offshore wind farm will maximize benefits for consumers and the state. The new legal framework is also designed to balance offshore and onshore wind development while making the project more attractive to investors.

“Offshore wind is a vital strategic investment that will strengthen Lithuania’s energy security. It will provide a more stable and predictable domestic electricity supply and diversify our energy mix. Our key principle is that this project should be financed from the benefits it generates, without placing an additional burden on consumers,” said Lithuania’s Minister of Energy, Žygimantas Vaičiūnas.

According to the Ministry, the offshore wind farm has the potential to reduce the average electricity price for consumers by approximately €3/MWh. The proposed legislation also ensures that any potential financial contribution from consumers would only apply once the park begins actual electricity production, which is expected around 2033.

The Ministry also plans to reduce the overall project cost by approximately €500 million. This will be achieved by shortening the indexation period for pricing from 23 to 8 years and introducing mandatory negotiations with the developer if the minimum number of tender participants is not met. This approach aims to secure more competitive terms and lower the final project costs.

The revised framework expands the number of municipalities eligible for community support from one to five. Local communities in Klaipėda City, Klaipėda District, Neringa, Palanga, and Kretinga District will now benefit from a support mechanism of €1/MWh for the energy produced.

Additionally, the Ministry will align the transmission rules for offshore and onshore projects by removing the priority right for offshore wind energy over onshore wind and solar power. This will ensure balanced conditions for both sectors.

 

The second offshore wind auction will resume following approval of the legislative changes by the government and parliament.