The European Commission (EC) on Wednesday gave the green light to a EUR-193-million (USD 202m) offshore wind support scheme in Lithuania, having concluded that it is “necessary, appropriate and proportionate to accelerate the green transition.”
The particular measure will be implemented through an auction in which developers will bid for the right to build an offshore wind park of roughly 700 MW in a specified area in the Baltic Sea.
The winner will receive state aid over 15 years in the form of a variable premium under a two-way contract for difference (CfD). More specifically, the beneficiary will get aid equal to the difference between the strike price and the market prices for electricity, but will also be required to pay the difference between the two prices to the state when the market price goes above the strike price.
“This EUR-193-million Lithuanian scheme will enable Lithuania to accelerate the rollout of green energy projects, such as offshore wind farms. This will contribute to the EU Green Deal’s ambitious energy and climate targets, without unduly distorting competition in the Single Market,” commented Didier Reynders, commissioner in charge of competition policy.
(EUR 1.0 = USD 1.048)