The Lithuanian Seimas approved the further development of offshore wind energy. With the updated tender conditions, the offshore wind farm will provide greater benefits to consumers, will not have a negative impact on onshore wind farms, and will be more attractive to potential investors.  

Following the Seimas’ approval of amendments to the Renewable Energy Sources Act, the procedure for indexing the transaction price won in the tender has been changed. It has been established that the transaction price will be indexed for 8 years from the date of confirmation of the tender winner, rather than 23 years as provided for in the previous tender conditions. It is also proposed to oblige the tender winner to use the infrastructure of Lithuanian ports during the development of power plants, if this is economically justified and the port can provide the necessary infrastructure and services.

The amendments to the law aim to ensure that the development of offshore wind energy benefits consumers and has a positive impact on final electricity prices – it is estimated that offshore wind farms could reduce the average price of electricity for consumers by around €3/MWh.

The amendments also ensure that, if consumers are required to contribute, their contribution should not exceed the benefits they receive from the offshore wind farm. Any financial contribution from consumers to the offshore wind farm would only be made once the farm actually starts generating electricity, i.e. around 2033. In addition, there is a possibility that the income tax paid by the potential developer could be used to cover the costs of services of public interest.

The amendments harmonize the conditions for electricity transmission by removing the priority right of electricity generated by offshore wind farms over onshore wind and solar power plants. This ensures balanced conditions for the development of offshore and onshore wind power.

The offshore wind farm tender will be considered valid if two or more participants take part in it.

Preparatory works for offshore wind farm development and related infrastructure No. 03-004-P-0001

Funded by the European Union NextGenerationEU

Source: offshorewind.lt