The Ministry of Energy in Lithuania says it is minded to adopt a contract for difference (CfD) regime for its first round of auctions for offshore wind energy
In a 2 September 2020 announcement, the ministry said it had prepared and submitted to the Lithuanian Government a package of draft laws aimed at creating what it described as “a clear and transparent regulatory environment for the development of wind energy in the Baltic Sea.” The ministry envisages that the first offshore wind energy auction in the country will take place in 2023.
“Taking into account the experience of the European Union countries with the greatest wind energy capacity and the recommendations of a working group, the proposed legislation, which will create a clear and transparent regulatory environment, will ensure a level playing field for all tenderers,” the ministry said.
Minister of Energy Žygimantas Vaičiūnas said, “The Ministry of Energy has been preparing for the development of offshore wind in the Baltic Sea for several years, starting with a feasibility study to assess the potential of offshore wind in the Baltic. That process will culminate in an open international auction in 2023.
“In line with the practice in the countries with the most experience in offshore wind, it is envisaged that responsibility for the installation of transmission networks will be assigned to the electricity transmission system operator.”
In June 2020, Lithuania’s Cabinet of Ministers confirmed the selection of a 137.5 km2 area in the Baltic designated for the development of 700 MW of offshore wind.
The cabinet also confirmed an offshore wind development roadmap first discussed by a public-private offshore wind task force in Q1-Q2 2020.
The Lithuanian Energy Agency will prepare spatial planning and environmental documents to mitigate risks for the developer selected for the project.
The offshore wind capacity built following the auction should begin to produce power in 2028.
The legislation must still be approved by the Lithuanian Government and then adopted by the Seimas, the legislative branch of government in the country. The proposed regulatory environment will also need to be agreed with the European Commission and its state aid guidelines.