Seimas Approves Amendments to the Tender Conditions for Offshore Wind Farm
Today, the Seimas has approved the further development of offshore wind energy. The updated tender conditions will enable the offshore wind farm to offer consumers more benefits while minimising the impact on onshore wind farms and increasing its appeal to potential investors.
Amendments to the Law on Energy from Renewable Sources, approved by the Seimas, have changed the procedure for indexing the price of the transaction won in the tender. The new provisions stipulate that the transaction price will be indexed for eight years from the successful tenderer’s confirmation date, instead of 23 years as foreseen in the previous tender conditions. It is also proposed that the successful tenderer use the infrastructure of Lithuanian ports during the development of the power plants if this is economically feasible and the port can provide the necessary infrastructure and services.
The proposed modifications to the Law are intended to guarantee that the advancement of offshore wind energy brings benefits to consumers and has a positive impact on the ultimate price of electricity. It is estimated that an offshore wind farm could reduce the average electricity price for consumers by around EUR 3/MWh.
The amendments also ensure that if consumers need to contribute, their contribution should not exceed the benefits of the offshore wind farm. Any financial contribution from consumers to the offshore wind farm would only be made from the moment the wind farm starts generating electricity, i.e., around 2033. In addition, a possibility to divert the profit tax paid by the potential developer to cover the need for services of public interest is also provided for.
The amendments harmonise the conditions for electricity transmission by removing the right of first refusal for the transmission of electricity produced in an offshore wind farm over onshore wind and solar power plants. This ensures balanced conditions for the development of offshore wind and onshore wind.
A tender for an offshore wind farm will be considered successful if two or more bidders participate. The tender is planned to be announced by mid-June.