ARKANSAS, Oct 7 (Future Headlines)- Lithuania is set to accelerate the deployment of green energy projects, particularly offshore wind farms, through a €193 million scheme supported by the European Commission. This initiative aligns with the EU’s ambitious energy and climate targets outlined in the EU Green Deal.

The project, selected via a competitive bidding process for a specified area in the Baltic Sea, boasts a substantial capacity of 700 MW. This significant capacity will contribute significantly to Lithuania’s renewable energy goals and enhance its position in the offshore wind sector.

Under the scheme, financial aid will be provided to the project beneficiary in the form of a variable premium, structured as a two-way contract for difference (CfD) spanning 15 years. The key mechanism here involves calculating the difference between the strike price and the prevailing market prices for electricity. When the market price is below the strike price, the beneficiary receives aid, helping to ensure the financial viability of the project. Conversely, when the market price surpasses the strike price, the beneficiary is obligated to pay the difference back to the state.

The scheme represents a strategic move by Lithuania to bolster its renewable energy capacity and accelerate the rollout of offshore wind farms. Such developments are pivotal in achieving the goals set forth in the EU Green Deal, which places a strong emphasis on transitioning to cleaner and more sustainable energy sources.

Didier Reynders, the Commissioner in charge of competition policy, noted that this scheme will facilitate the rapid expansion of green energy projects, particularly offshore wind farms, without compromising competition within the Single Market. It highlights the European Commission’s commitment to supporting Member States in their pursuit of renewable energy targets and transitioning towards a greener and more sustainable energy landscape.

Lithuania has already taken significant steps in this direction, having recently completed its first 700 MW offshore wind tender, with Ocean Winds and Ignitis Renewables emerging as the provisional winners. The country has been actively streamlining its legislative framework to accelerate tendering procedures for offshore wind projects.

This forward momentum positions Lithuania as a promising player in the offshore wind sector, with expectations that the second offshore wind farm, scheduled for tender later this year, could start generating power as early as 2028. This aligns perfectly with the broader EU agenda to boost renewable energy capacity and reduce carbon emissions, further contributing to the green transition across the European continent.

Reporting by Kevin Wood; Editing by Sarah White