As Lithuania seeks to generate electricity from renewable sources in the Baltic Sea and reduce the country’s dependence on electricity imports and fossil fuels, preparations are underway for tenders to select offshore wind farm developers. Litgrid, the electricity transmission system operator, has published the preliminary conditions for the connection of the offshore wind farm in the maritime area to the electricity transmission grid..
First tender to be launched in March
Following the Government’s approval of the resolution on the second location in the Baltic Sea for the development of an offshore wind farm, as well as the requirements for tenderers, the National Energy Regulatory Council (NERC) will launch a tender for the selection of a developer on 30 March.
An offshore wind farm with 700 MW of generating capacity is expected to be built in Lithuania’s territorial waters in the Baltic Sea, almost 36 km offshore, by 2030.
Requirements to also include contribution to the coastal community
The government has approved requirements for the financial capacity of the tenderers, their experience, environmental obligations and contributions to the coastal community. These requirements will be included in the tender conditions for prospective offshore wind farm developers. The developer who offers the highest development fee to the State will win the tender.
According to the Government’s decision, future auction participants will have to have an average three-year revenue of at least EUR 250 million per year and at least 20% of the project’s value in equity. In addition, the developer will have to provide evidence that it has completed or acquired the right to develop at least one offshore project with a capacity of at least 150 MW.
The approved requirements provide incentives to reduce emissions of greenhouse gases (GHGs) that contribute to climate change during the construction of an offshore wind farm. At least 3% of the farm’s construction work will have to be carried out by small and medium-sized enterprises.
The successful tenderer will be required to contribute at least EUR 5 million for environmental protection in the Lithuanian maritime area. Once the offshore wind farm is built, the developer will be obliged to make an annual contribution (EUR 1 per 1 MWh of electricity generated) to the coastal communities. Preliminary estimates suggest that this could amount to around EUR 3 million per year.
The developer will have to carry out all the necessary studies, environmental impact assessments and other actions required for the development of the farm. The successful tenderer will also be responsible for connecting to the onshore grid and for the imbalance caused by the electricity generated.
Another tender to be launched in autumn
Another tender for the development of an offshore wind farm of up to 700 MW capacity in the Lithuanian territorial waters along Palanga is planned to be launched in autumn this year.
The two offshore wind farms would generate up to 6 TWh of green electricity, providing about half of Lithuania’s current electricity demand and reducing the country’s dependence on electricity imports.
