LEA to supervise the obligations of offshore wind farm developers

With Lithuania planning to develop two offshore wind farms in the Baltic Sea with a combined capacity of 1.4 GW, the Ministry of Energy has approved a procedure for the supervision and assessment of the obligations of the successful developers. The Lithuanian Energy Agency (LEA) will act as a supervisory authority during the construction and operation of the offshore wind farms.

The Lithuanian Energy Agency will supervise and assess how the developers comply with their obligations regarding the implementation of greenhouse gas emission reduction targets, project deadlines, compliance of component suppliers and manufacturers with European and transatlantic integration criteria, investment in environmental protection in the offshore area, support for local communities and the involvement of small and medium-sized enterprises in the projects.

Offshore wind farm developers will be required to report to the LEA on the progress of project implementation and the fulfilment of their obligations for the previous calendar quarter.

Failure to comply would result in a calculation of the value of the outstanding obligations and a fine.

The requirements approved by the Government provide incentives to reduce emissions of greenhouse gases that contribute to climate change during the construction of an offshore wind farm. At least 3 per cent of the construction of the farm will have to be carried out by small and medium-sized enterprises.

The successful tenderers will be required to contribute at least EUR 5 million each to the environmental protection of the Lithuanian maritime area. Once the offshore wind farms are built, the developers will be obliged to make an annual contribution (EUR 1 per 1 MWh of electricity generated) to the communities of municipalities in the vicinity of the farms. Preliminary estimates suggest that the amount paid by a single successful tenderer could be around EUR 3 million per year.

The consortium of Ignitis renewables and OW OFFSHORE, S.L. was awarded the first offshore wind farm tender launched on 30 March 2023. Offshore wind farm 1, established by the successful tenderers, has undertaken to build a wind farm with a capacity of 700 MW in the Lithuanian offshore territory. The wind farm is expected to start generating electricity around 2030.

The first phase of the second offshore wind farm tender is currently underway, with the registration of tenderers. Tender documents and bids can be submitted by 15 April this year. The successful tenderer of the second tender is expected to be announced in the third quarter of this year.

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

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