Regulatory environment is being created for the development of offshore wind energy in the Baltic Sea

Date

2020 09 04

Rating
0
CGP Grey.jpg

The Ministry of Energy has prepared and is submitting to the Government a package of draft law aimed at creating a clear and transparent regulatory environment for the development of wind energy in the Baltic Sea. The draft law foresees that the offshore wind energy auction will take place in 2023.

The draft law is based on the recommendations of a working group involving representatives of state institutions and social partners. The draft law is widely discussed and debated with all stakeholders

“Legislation has been developed taking into account the experience of the EU countries which have the most extensive knowledge in the area of wind energy as well as the recommendations of the working group. This legislation will create a clear and transparent regulatory environment for the development of offshore wind energy and ensure a level playing field for all tenderers. The Ministry of Energy has been preparing for the development of offshore wind energy in the Baltic Sea consistently for several years. This process started with a feasibility study aimed at assessing the potential of offshore wind in the Baltic Sea. The process will be completed by launching an open international auction which will take place in 2023,” says Energy Minister Žygimantas Vaičiūnas.

Taking into account the practice of countries with the greatest experience in offshore wind energy, such as the Netherlands, Denmark and Germany, it is foreseen that the electricity transmission system operator should be responsible for the installation of transmission grids by connecting offshore power plants.

The law will introduce a support model for offshore wind energy and the principles of its determination. As in other EU countries, wind energy development will be financed using a contract for difference model. The project provides for transparent and equal conditions for all market participants. The auction is expected to take place in 2023.

It should be noted that the concept of wind energy in the Baltic Sea prepared on the basis of the recommendations of the working group was approved by the Government in June. The plan for developing 700 MW wind farms by 2030 was also approved, including a certain area in the Baltic Sea.

The 700 MW wind farm in the Baltic Sea will help to meet up to 25% of Lithuania’s annual electricity demand and reduce electricity import. 

Taking into consideration the decision of the Government, the Lithuanian Energy Agency has started the necessary preparatory work, such as preparation of a special plan, strategic environmental impact assessment, wind measurement, floor research and environmental impact assessment. The preparatory work should be finished by the auction date foreseen in the draft law.

The development of offshore wind energy is foreseen as part of the implementation of the renewable energy targets of the National Energy Independence Strategy (NEIS) and the National Energy and Climate Action Plan (NECA). Offshore wind will not only help to achieve these targets for increasing the share of renewable energy generation, but also, due to the specifics of offshore wind, will allow achieving these target in one of the most effective ways.

For these draft laws to come into force, they must be approved by the Government and then they must be adopted by the Seimas. This regulatory environment will also have to be aligned with the European Commission to evaluate its compliance with the state aid guidelines.