2022 is a landmark year for the offshore wind sector in Lithuania. At the end of March, the Lithuanian Parliament gave a green light for the regulations necessary for the emergence of first wind farms in the Baltic Sea. The regulations are being adopted, while in the background the countries of the Baltic Sea region are accelerating their actions for RES development. Tomas Milašauskas, Renewable Energy Investments Fund Manager at Lords LB Asset Management, comments on the matter for BalticWind.EU. The commentary was originally published in BalticWind.EU Quarterly Country Report Lithuania Q1 2022.
On 31 March 2022, the Seimas of Lithuania adopted a package of laws concerning the development of offshore wind energy in the Baltic Sea. As a result, it gave a green light for the construction of the first offshore wind farm in Lithuania. It is now certain – the first RES auctions for an offshore wind farm in Lithuania will take place in the second half of 2023. The Ministry of Energy of Lithuania holds consultations with potential developers of offshore wind parks.
We asked Tomas Milašauskas about the most suitable financial support system for offshore wind development in Lithuania. BalticWind.EU interviewee said that as is typical for long term infrastructure projects, a cheap revenue hedge tool such as no floor no cap CfD system would be an important factor for reducing project risk and cost of financing it.
“Transparent auction system, preferably organised by a reputable independent advisor, could also provide a confidence boost to potential project investors. Finally, timely implementation of key major development milestones and staying on or ahead of announced schedules on the Government side would also provide confidence in the process and would allow optimizing process costs on all sides”, he said.
The full commentary was originally published in BalticWind.EU Quarterly Country Report Lithuania Q1 2022.