European Commission approves Lithuanian scheme to support offshore wind farms

The scheme was approved under the State aid Temporary Crisis and Transition Framework to support measures in sectors which are key to accelerate the green transition and reduce fuel dependencies.

The Lithuanian 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 a new offshore wind farm. 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 700 MW.

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 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.