Lithuania opts for CfD offshore wind auction scheme

Lithuania plans to finance and develop offshore wind projects using the Contracts for Difference (CfD) scheme, according to the draft legislation prepared and submitted by the country’s Ministry of Energy.

A transmission system operator (TSO) will be responsible for providing grid connection infrastructure for the projects, according to the draft law package.

“Taking into account the experience of the European Union countries with the greatest wind energy and the recommendations of the working group, the developed legislation, which will create a clear and transparent regulatory environment for offshore wind energy development, will ensure a level playing field for all bidders,” said Lithuania’s Minister of Energy Žygimantas Vaičiūnas.

”The Ministry of Energy has been consistently preparing for the development of offshore wind in the Baltic Sea for several years now – starting with a feasibility study to assess the potential of offshore wind in the Baltic Sea and ending the process with an open international auction in 2023.”

Lithuania plans to hold its first offshore wind auction in 2023.

As previously reported, Lithuania approved plans to develop a 700 MW offshore wind project in the Baltic Sea by 2030.

The area selected for the development of the project covers 137.5 km2, with a distance from shore of approximately 29 kilometres, an average water depth of 35 metres, and an average wind speed of approximately 9 m/s.

A wind farm of this capacity would produce approximately 2.5-3 TWh of electricity per year, which is 25 per cent of the country’s current electricity demand, the ministry said.

The Lithuanian Energy Agency has now started the necessary preparatory work such as wind measurement and seabed surveys, and has started working on an environmental impact assessment. These preparatory works will be completed by the auction date set out in the draft law.

For the draft law to enter into force, it must still be approved by the Government and then adopted by the Seimas (the unicameral Parliament of Lithuania).