Lithuania secures €193m EU support to develop offshore wind

Lithuania has secured a €193 million ($204 million) support scheme from the European Commission to advance the development of offshore wind and the country's green transition.

The scheme was approved under the State aid Temporary Crisis and Transition Framework designed to speed up green investment in Member States within the context of the Russian-Ukraine war.

Under the scheme, companies in Lithuania and in other Member States can participate in a tender to develop and operate a new offshore wind power plant.

The project will be selected through a competitive bidding process for an area in the Baltic Sea with a capacity of 700MW.

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Under this measure, the aid will take the form of a variable premium under a two-way contracts for difference (CfD) for a period of 15 years.

According to the International Energy Agency, Lithuania imports around three-quarters of its electricity needs.

Renewable energy dominates domestic generation, with more than three-quarters of electricity generated from renewables, primarily from wind and hydro.

The government is aiming for 80% renewables in final energy demand by 2050.

The country has also committed, along with Latvia and Estonia, to decouple from the Russian grid. The agreement to synchronise with the European grid was signed at the beginning of August by the Government of the Baltic States and the electricity transmission system operators Litgrid, AST and Elering.