“Offshore wind parks in Lithuania are a necessary strategic investment that guarantees energy security for Lithuania. The offshore wind park will ensure more stable and predictable national electricity production and a diversity of energy sources. The key principle is that electricity consumers should not have to pay for this project; it must be developed in a way that is funded by the benefits it generates. It will also bring greater benefits to municipalities, as we have expanded the circle of beneficiaries of offshore wind park support: from one municipality to five,” says Minister of Energy Žygimantas Vaičiūnas.
Greater Benefits for Consumers
The proposed law amendments aim to ensure that the development of offshore wind energy brings benefits to consumers and positively influences final electricity prices. The offshore wind park could reduce the average electricity price for consumers by about 3 EUR/MWh.
The changes ensure that if consumers are required to contribute, their share would be smaller than the benefits they receive from the offshore wind farm. Any financial contribution from consumers to the offshore wind farm would only begin once the farm starts producing electricity, around 2033.
Reduced Project Cost – About 500 Million Euros
The proposed amendments to the Law on Energy from Renewable Sources suggest reviewing the impact of inflation on the project. From the announcement of the tender winner to the signing of the electricity production agreement, the price would be indexed for 8 years instead of the previously proposed 23 years. This change could lower the project cost by approximately 500 million euros.
In case of a minimal number of tender participants, negotiations will be held with the developer regarding the project price or reducing the incentivized production volume, thus ensuring a lower final project cost.
Expanded Number of Municipalities
It is proposed that the support related to the project (1 EUR/MWh) would be allocated not to one municipality’s community, but to five: Klaipėda City Municipality, Klaipėda District Municipality, Neringa Municipality, Palanga City Municipality, and Kretinga District Municipality.
Balanced Conditions for the Development of Offshore and Onshore Wind Parks
The amendments harmonize conditions for electricity transmission – the priority right for transmitting electricity produced in the offshore wind park over onshore wind and solar plants will be removed. This ensures balanced conditions for the development of both offshore and onshore power plants.
The second offshore wind park tender will be renewed after the Government and the Seimas approve the amendments to the Law on Energy from Renewable Sources.
The park could start operating from 2033.
