“The successful auction for the right to develop an offshore wind farm is an important commitment to Lithuania’s energy independence and security, which will also bring benefits to the economy and consumers. It marks the beginning of a new phase in Lithuania’s energy history, with the development of a new type of offshore wind energy in the Lithuanian energy sector,” Dainius Kreivys, Minister of Energy, comments on today’s auction for the right to develop a 700 MW offshore wind farm in Lithuanian territorial waters in the Baltic Sea.
The Minister emphasises that the auction was organised to attract investors to bid for the most advantageous financial offer and pay a development fee, rather than for state support and subsidies to implement this considerable project. “With the capital borrowing costs and equipment prices rising and electricity prices almost back to pre-crisis levels, the situation has become less attractive for renewable energy development. Nevertheless, we have managed to convince developers to invest in Lithuania, which I think is a great success,” says Mr Kreivys.
Daiva Garbaliauskaitė, Vice-Minister of Energy, says the auction is also an important commitment by the developer to develop a project that will secure a quarter of Lithuania’s current electricity needs. According to her, even with the rapid growth of renewable energy generation in Lithuania, the lack of domestic electricity generation is a major challenge for energy and national security. “Offshore wind will plug the last hole in the shortage of generation and enable a huge growth in domestic green energy,” says Ms Garbaliauskaitė.
The winner of the auction will be officially announced once the procedures related to the compliance with national security have been completed.
By 2030, Lithuania plans to develop two offshore wind farms in the Baltic Sea with a combined capacity of 1,4 GW, which will supply half of Lithuania’s current electricity consumption.
Meanwhile, by 2050, Lithuania will have the potential to install 4.5 GW of offshore wind facilities, a figure that will be reflected in the new National Energy Independence Strategy that is currently being drafted.
