Offshore wind
parks in Lithuania
Lithuania's offshore wind parks is one of the most important Lithuanian energy independence projects. The projects will significantly increase the production of electricity from renewable energy sources, thus reducing Lithuania's dependence on electricity imports and ensuring low electricity prices for residents.
1,4GW
of power two plant parks will be built in 2028
6 TWh
generated electricity per year will ensure up to half of Lithuania's current needs
3 bil
Eur of private investment
1300
new jobs
Renewable energy
The offshore wind farms, which will begin to operate in 2028 in the part of the exclusive economic zone of the Republic of Lithuania in the Baltic Sea near Palanga with a capacity of approximately 1,4 GW, are expected to generate up to 6 TWh of green electricity per year, which would meet up to a half of Lithuania’s current electricity demand. The offshore wind farms are also expected to attract about EUR 3 billion in investments and create at least 1,300 new jobs.
News
Frequently asked questions
F.A.Q.
The offshore wind farm is planned to be built in 2028.
Wind energy stands out from other types of energy from renewable resources due to its sophistication and rapid technological progress. Energy produced from wind reduces air pollution, contributes to the mitigation of climate change, helps ensure energy security and reduces fossil fuel imports. Wind energy is inexhaustible, and expanding the wind energy sector creates new jobs and promotes regional development. It is worth noting that in the National Energy Independence Strategy, our country has an ambitious goal - to produce up to 100% of energy from renewable sources. the country needs electricity. In order to achieve these indicators, the role of wind energy, especially offshore, will only strengthen in the future.
The area of the territory planned for the offshore wind farm in the Baltic Sea is about 136.39 km2.
Possible changes to the natural environment defined in the Environmental Impact Assessment (EIA), and compensatory and preventive environmental protection measures will have to be implemented by the park developer.
Offshore wind farms will not have a negative impact on either land or water recreational tourism. The offshore wind power plants will be located about 30 kilometers from the shore.
- It is planned that the budget of nearest city municipality will be supplemented by about 3 million. euros, which the park developer will be obliged to pay from the amount of electricity generated and supplied to the network;
- During the construction and exploitation period, it is planned to create as many as 1.3 thousand new jobs
Is the 193 EURm approved subsidy by the EU, the maximum amount of support that can be granted to the project (i.e. the maximum incentive volume during the 15 years of the CfD)? Is the amount inflation linked? Given it’s a 2-sided CfD, is it correct to assume that the maximum support amount is the net support amount (i.e the net of top-up / payments to and from the Offshore wind farm company)?
2024-01-12 (updated 2024-03-04) The preliminary amount of support was calculated taking into account certain assumptions and market conditions. The amount of support depends on various variables and electricity price, therefore, the assumptions of the need for support amount depend on long-term electricity market price forecast. It is worth to note that the amount of support indicated in the European Commission’s decision is an estimate, i.e. preliminary and depending on the above-named circumstances may change, therefore, should not be understood as a maximum possible amount of support when submitting bids. In addition, it is worth to mention, that consultations with European Commission’s representatives showed that no procedural follow-up is needed.
Will I be able to find in sources (links) that is shared in previous email documentation drafts that will be signed with auction winner – contracts, agreements, guarantees etc.? Because at the moments everything is based on legislative documents or maybe that is intentional?
2024-01-30 We would like to confirm that the tender winner will have to sign at least several agreements with grid operator and state authorities (for example, with transmission system operator - connection agreement, with authority in charge of national security - an agreement related to compensation of measures necessary to assure national security, see Annex of the Government resolution in Lithuanian only) during the project design stage.
Taip pat „Litgrid“ skelbia ir kitas sutartis, kurios pasirašomos pastačius elektrines: prekybos balansavimo paslaugomis sutartis, pasinaudojimo perdavimo tinklu sutartis.
All rules and requirements concerning offshore wind farm development and operation activities are stated in the legislative documents: https://offshorewind.lt/lt/teisine-aplinka/.
What duration of assurance of fulfillment of obligations must be provided to AB Litgrid after the signing of the letter of intent?
2024-01-17 According to Article 21¹, Part 1 of the Law on Electricity, the assurance of fulfillment of obligations provided by the Bidder must be valid for 30 calendar days longer than the letter of intent. In the letter of intent, the tenderer undertakes to prepare to connect his electrical devices to the power grid within a specified period, and the power grid operator to connect this person's electrical devices to the power grids controlled by him within a specified period.
Are there any restrictions on when the winning bidders can perform direct or indirect transfers of the project to other entities (divestments)?
2024-01-12 According to the Law on Renewable Energy Sources, a person or legal entity who has received a permit for development and operation does not have the right to authorize other persons to engage in the activities specified in this permit or to transfer these rights to them under a contract or on other grounds. Thus, nor the right to use the maritime area, neither the permit for development and operation can be transferred to any other legal or natural person.
However, it should be noted that the shares of the winning company may be sold or transferred to other persons (i) after the winner of the tender is announced if the winning company is the solo player, (ii) after the joint company is established and registered with the Legal Entities Register in case several companies participated in the tender based on the joint venture agreement or other similar legal base).
Please also be aware that some additional procedures are planned in the future for such cases when at least the qualified stake of the winning company shares is transferred – it is planned that the National Energy Regulatory Council would have to be informed and would execute verification of a new qualified shareholder including verification on the correspondence to national security requirements.
Is the strike price / transaction price awarded a nominal or inflation linked price?
2024-01-12 The awarded strike price will be not linked to inflation, i. e. the price is nominal and is awarded for the entire promotion period of 15 years. It is worth to mention that strike price may not exceed the maximum price set by the National Energy Regulatory Council (107,18 Eur/MWh) and should be higher than the lowest price limit (64,31 Eur/MWh) . Maximum price and price lowest limit were approved on the 13th of July 2023.
Is it the winner of the bid required to pay for both the development and construction of the onshore transmission system required for the injection of power into the grid albeit the TSO is responsible for the construction of it?
2024-01-12 According to the Law on Renewable Energy Sources , the winner of the tender installs, operates, owns, and manages the infrastructure necessary to connect offshore wind power plants to electricity transmission networks, from these power plants to the connection point specified by the electricity network operator (Link to preliminary connection conditions). The winner of the tender, in accordance with the procedure established by the transmission system operator (TSO), covers the costs incurred by the TSO for the development of the onshore transformer substation, which is necessary to connect these power plants. Therefore, we confirm that if the winning bidder offers a development fee, the winner will also have to cover the costs of offshore wind power plant connection infrastructure (offshore and onshore, also owned by the winner and by TSO). It is worth to note that the transmission system operator has indicated the need for necessary infrastructure development in the preliminary connection conditions (link provided above in this text). This development may be performed by the developer or by the grid operator according to the agreement, the developments will be transferred to the grid operator.
