Lithuania cites 'national security' as it starts second offshore wind tender

Baltic country bets on wind at sea to wean itself off Russian energy imports

Lithuanian energy minister Dainius Kreivys.
Lithuanian energy minister Dainius Kreivys.Foto: European Union

Lithuania’s National Energy Regulatory Council (NERC) has launched a second 700MW offshore wind tender in its territorial waters, which the government said will enhance "national security" as the Baltic country is weaning itself off Russian energy imports.

Bidders can submit their applications to NERC until 14 April 2024. Under the terms of the tender, interested parties will be able to develop the array with or without contract for difference (CfD) support. The price ceiling at the auction is €107.18 ($116.50) per MWh.

"Lithuania is rapidly increasing its domestic electricity generation, with electricity production growing from 30% to almost 50% in the last few years,” energy minister Dainius Kreivys said.

“The planned two offshore wind farms will provide half of Lithuania's current electricity consumption and will allow it to be self-sufficient in electricity from domestic sources and eliminate its dependence on electricity imports.

“These are Lithuania's strategic goals, which determine the country's national security, people's confidence in the state, the price of energy resources for our population and the international competitiveness of our exporting business.”

Lithuania when preparing its first 700MW offshore wind tender last year had said that its armed forces will verify the compliance of the construction plans with national security interests.

Military concerns are a sensitive issue in the Baltic Sea and have been heightened further since Russia invaded Ukraine, possible Russian spy vessels have been detected mapping the sea ground, and sabotage acts against the Nord Stream gas pipelines in 2022 were carried out.
Getting rid of its reliance on Russian gas and electricity has been one of Lithuania’s main reasons for opting for offshore wind energy, despite having only a relatively limited coastline of about 260 kilometres. The country shares a border with the Russian exclave of Kaliningrad that is sandwiched between Lithuania and Poland and hosts major Russian military installations.
The link-up between French and Portuguese utilities Engie and EDPR, together with local energy group Ignitis Renewables, had won Lithuania’s first offshore wind tender, which still included no option to bid for state support.

The winner of the second tender will be required to contribute at least €5m for environmental protection in the Lithuanian maritime area. Once the offshore wind farm is built, the developer will be obliged to make an annual contribution of €1 per MWh of electricity produced. Preliminary estimates suggest that this could amount to around €3m annually.

The area of the second wind farm is about 136 square kilometres and is located at some 30kms from the coast.

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Published 17 January 2024, 09:46Updated 17 January 2024, 09:46
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