Investors are ready to invest in renewable energy in Lithuania without state support

Date

2020 01 16

Rating
3
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Today the National Energy Regulatory Council (NERC) has confirmed the winner of renewable energy auctions. The price premium to the electricity exchange price offered by the successful investor is EUR 0 per MWh. This means that the project will be developed without state support.

“It is the breaking point in Lithuania’s renewable energy, since it is the first time that investments are made into wind farms without state support. Lithuania has evidently managed to create a particularly attractive environment for energy-related investments. It means lower dependency on electricity import, more jobs, and higher income for the state,” says Minister of Energy Žygimantas Vaičiūnas.

“Well done to Lithuania for securing so much interest in onshore wind in its first auction under its new system.  And for securing bids at such affordable prices for its consumers.  The auction confirms that onshore wind is the cheapest form of new power generation in most of Europe.  And that there are a wealth of investors who want to support it.   And it’s great to see that wind energy is advancing in Central and Eastern Europe.  And that Lithuania is already playing its part to deliver the goals of the new Sustainable Europe Investment Plan the EU Commission announced yesterday as part of the European Green Deal“, - says WindEurope CEO Giles Dickson.

 The Government has approved three renewable energy auctions to be held annually until 2022. During each auction, 0.7 terawatt hours (TWh) of electricity are planned to be distributed. The nearest auction will be held in May 2020. The other two auctions are scheduled for April 2021 and 2022.

Based on the European best practice, Lithuania has been organising technologically-neutral auctions which are open to all RES technologies such as sun, wind, biomass, biogas. The projects participating in auctions also have to cover all costs of joining the electricity grid and to secure balancing.

The project of the auction winner is expected to be not the only new power plant park developed without state support. Currently, the overall capacity of authorisations to develop electricity production using RES issued to investors reaches 290 MW. Projects would be implemented without state support.

These new RES power plants that could start operation in 2023 would generate over 1 TWh of electricity, which would satisfy up to one-tenth of electricity demand in Lithuania.

The amount of electricity distributed in the scheduled auctions will result in double amount of electricity produced from RES up to 5 TWh by 2025 and at least 38 per cent of electricity consumed in Lithuania will be produced from RES. This increase in renewable electricity production equals more than 1 million of household consumption.

According to the data from the European Commission, Lithuania is among the five most ambitious EU countries in terms of 2030 renewable energy targets.

More information about the winner of the first renewable energy auction is available here.