The Ministry of Energy is striving to ensure that the offshore wind farm provides the greatest possible benefit to consumers, does not negatively impact onshore wind turbines, and is attractive to potential investors. The ministry also wants the winner of the tender to utilise Lithuania’s port infrastructure in the development of the power plants. In January of this year, the government suspended the offshore wind farm tender that was announced in November 2024 and reviewed the conditions for organising the tender and the related legal regulations.
Amendments to the Law on Energy from Renewable Sources have been proposed that would change the procedure for indexing the tender transaction price and establish that the transaction price is indexed for eight years from the date of confirmation of the winner of the tender, rather than 23 years, as was provided for in the previous conditions of tender. It is estimated that this would help reduce the need for support by approximately EUR 500 million.
After public consultations, efforts are also being made to establish that the tender be deemed to have taken place if two or more tenderers participate in it.
The amendments to the law are meant to make sure that the development of offshore wind energy brings benefits to consumers and has a positive impact on end-use energy prices – the offshore wind farm could reduce the average price paid by consumers by roughly EUR 3/MWh.
The amendments ensure that even if consumers are required to contribute, their contribution will not exceed the benefits received from the offshore wind farm. Any financial contribution from consumers to the offshore wind farm would only be made once the farm actually begins generating electricity – around 2033. There is also a proposal to provide for the possibility of directing the corporate income tax paid by potential developers to cover the need for public service obligations.
The amendments harmonise the conditions for the transmission of electricity, waiving the pre-emption right to transmit electricity generated in an offshore wind farm over onshore wind and solar power plants. This ensures balanced conditions for the development of offshore wind farms and onshore power plants.
The proposed amendments will now go to the Seimas of the Republic of Lithuania for consideration.
