The European Commission has approved a €193m scheme to support an offshore wind project in Lithuania to foster the country’s transition towards net zero.
The project, to be supported under the scheme, will be selected through a competitive bidding process for a specified area in the Baltic Sea with a capacity of 700MW.
Under this measure, the aid will take the form of a variable premium under a two-way contracts for difference (CfD) for a duration of 15 years, which will be calculated by comparing a reference price, determined in the tender offer of the beneficiary, as well as by the market price for electricity.
The measure will be open to companies active both in Lithuania and in other Member States for participation in a tender for the authorisation to develop and operate the 700MW offshore wind farm.
The beneficiary will be entitled to receive an aid equal to the difference between the strike price and the market prices for electricity as soon as the market price is below the strike price. However, the beneficiary will have to pay the difference between the two prices to the State as soon as the market price is above the strike price.
The scheme, in line with the Green Deal Industrial Plan, was approved under the State aid Temporary Crisis and Transition Framework, adopted by the Commission on 9 March 2023 to support measures in sectors which are key to accelerate the green transition and reduce fuel dependencies.
The new framework amends and prolongs in part the Temporary Crisis Framework, adopted on 23 March 2022 to enable Member States to support the economy in the context of the current geopolitical crisis, already amended on 20 July 2022 and on 28 October 2022.
Lithuania notified to the Commission, under the Temporary Crisis and Transition Framework, a Lithuanian scheme to support the rollout of renewable offshore wind farms to foster the transition towards a net-zero economy.