Lithuanian Gov’t Approves Proposed Changes to Offshore Wind Tender

The Lithuanian government has approved the proposed changes to the terms of the tender for the country’s second offshore wind farm, for which the tendering process was paused in January so the government could re-evaluate the conditions.

The proposed modifications of Lithuania’s second offshore wind tender, which will now be further discussed in the Parliament (Seimas), involve amendments to the Renewable Energy Law which would change the procedure for indexing the price won in the tender and establish that the price is indexed for eight years from the date of confirmation of the winner of the tender, instead of 23 years under the current law.

It is estimated that this would help reduce the need for support by about EUR 500 million, according to the Lithuanian Ministry of Energy.  

Furthermore, the changes to the next tender would also establish that a competition would be considered successful if two or more bidders participate in it, a modification that was proposed following public consultations.

Lithuania’s National Energy Regulatory Council (NERC) first launched the country’s second offshore wind tender, seeking a developer for a 700 MW offshore wind farm, at the beginning of 2024. However, in April last year, the process was discontinued after only one bid was submitted.

NERC again launched the tender in November 2024, but on 29 January 2025, the government announced to put the tender on hold, saying the tender was paused for review to ensure the legislative framework promotes fair competition while protecting the interests of electricity consumers.

On 9 April, the Ministry of Energy said that an offshore wind farm could reduce the average electricity price for consumers by about EUR 3/MWh and that the goal of the amendments was to ensure that offshore wind development brings benefits to consumers and has a positive impact on final electricity prices.

“The amendments ensure that, if consumers are required to contribute, their contribution should not exceed the benefits received from the offshore wind farm. Any financial contribution from consumers to the offshore wind farm would only be made once the farm actually starts generating electricity, around 2033. In addition, it is proposed to provide for the possibility of redirecting the corporate tax paid by a potential developer to cover the need for services in the public interest”, the Ministry of Energy said in a press release on 9 April.

The amendments also unify the conditions for the transmission of electricity by waiving the priority right for the transmission of electricity generated by an offshore wind farm over onshore wind and solar power plants, according to the Ministry of Energy, which said this ensures balanced conditions for the development of offshore wind and onshore renewable energy.

Lithuania plans to have two offshore wind projects with a combined capacity of 1.4 GW.

In 2023, the Lithuanian government awarded the development rights for the first 700 MW offshore wind project to a joint venture between Ocean Winds and Ignitis Renewables.