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.
Source : Renews