Author: ZVG

Lithuania suspends 700 MW offshore wind auction for review of conditions

The Lithuanian Ministry of Energy has proposed temporarily suspending the announced 700 MW offshore wind auction in the Baltic Sea in order to review its terms and conditions and ensure the least possible impact on the final price of electricity. When the government decides to resume the auction, it will continue in accordance with the rules and procedures set out in the Renewable Energy Sources Act.

The current auction was announced in November 2024 after the first round of the competition did not receive a sufficient number of bids.

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Source: Renewables Now, 22.01.2025.

In September 2024, the European Commission sent formal warning letters to 26 EU Member States in its infringement package, stating that they had not fully transposed the requirements of the revised Renewable Energy Directive (RED III) regarding the simplification and acceleration of the permit granting process. Continue reading “The European Commission is starting infringement procedures against 26 EU Member States, including Latvia, Lithuania, Estonia, and Poland, for not fully implementing the RED III requirements”

Reorganization of the Environmental State Bureau – establishment of the Energy and Environment Agency

In accordance with Cabinet Order No. 1191 of December 17, 2024, the Environmental State Bureau (VPVB) and the State Construction Control Bureau (BVKB) will be reorganized on February 1, 2025. The VPVB will take over the functions of the BVKB in the administration of energy policy, and the name of the office will change to the Energy and Environment Agency (EVA).

The new EVA will report to the Ministry of Climate and Energy, and its main objective will be to combine the functions of several institutions, thereby facilitating the implementation of renewable energy projects and making Latvia’s environment more attractive to investors.

Until now, project developers have often struggled to obtain various information or permits from multiple institutions – the EVA will significantly simplify this process by combining the functions of the responsible institutions in one place.

These changes also mark Latvia’s approach to creating a single point of contact in accordance with the requirements of the Renewable Energy Directive (RED III).

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Sources: On the Reorganization of the Environmental State Bureau and the State Construction Control Bureau (Cabinet Order No. 1191, 17.12.2024.); State Construction Control Bureau (Republic of Latvia), 17.12.2024.

The Lithuanian National Energy Regulatory Council (VERT) has re-announced a 700 MW offshore wind auction after the first round of the tender was suspended in January 2024 due to insufficient competition. The new tender provides for a Contract for Difference (CfD) support model and price indexation, with a deadline for applications set for March 18, 2025. The aim of the tender is to attract stronger investor bids and promote Lithuania’s strategic goal of developing 1.4 GW of offshore wind capacity by 2030.

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Sources: Renewables Now, 18.11.2024.; OffshoreWIND.biz, 18.11.2024.

The Polish government has adopted a law that allows different maximum electricity prices to be set for offshore wind farms depending on the geophysical conditions of the specific sea area (depth, seabed quality, distance from the coast). The new regulations give the Minister of Climate and Environment the right to set differentiated price caps by regulation, taking into account the actual construction and operating costs. This approach is intended to attract investors to less commercially attractive areas and improve market competition.

At the same time, the government has approved an increase in the price cap for the second phase of OWF development auctions from 471.83 PLN/MWh (around 110 EUR/MWh) to 512.32 PLN/MWh (around 118 EUR/MWh). This decision is based on current inflation data, cost increase analysis and investor signals that the previous rate is not sufficient for the viability of projects. In the previous phase (5.9 GW), the support price was 319.6 PLN/MWh (around 74 EUR/MWh).

New auctions are planned for 2025, 2027, 2029 and 2031 with the aim of selecting projects with a total capacity of 12 GW. The support system includes covering negative balance payments, providing investors with compensation for the difference between the market price and the guaranteed price. However, some industry representatives point out that the desired price level would be 500-600 PLN/MWh (around 115-138 EUR/MWh) to cover rapidly rising costs.

Source: BalticWind.EU, 14.11.2024.

The Estonian Consumer Protection and Technical Regulatory Authority (TTJA) has initiated a building permit procedure and environmental impact assessment for two offshore wind farms more than 30 km west of Saaremaa Island. The project developer, Norwegian company Deep Wind Offshore AS, won the Saare 2.1 and Saare 2.2 offshore auctions in June.

According to the submitted applications, up to 104 turbines with a total capacity of up to 1,560 MW and up to four substations are planned in the Saare 2.1 area (163.8 km²), while in the Saare 2.2 area (88.5 km²), up to 56 turbines with a capacity of up to 840 MW and up to two substations are planned. Both areas are located in Estonia’s maritime spatial plan as suitable for offshore wind development. Continue reading “Norway’s Deep Wind Offshore launches offshore wind project near Saaremaa Island”

The Estonian Consumer Protection and Technical Regulatory Authority (TTJA) has launched a procedure for granting a building permit and assessing the environmental impact of the offshore wind farm in the Gulf of Riga, south of Kihnu Island, as applied for by Liivi Offshore OÜ.

The project envisages up to 140 turbines, which can reach a height of 300 meters above sea level, with a capacity of up to 20 MW each. The total potential capacity in both areas (zones 1 and 2) could reach up to 2010 MW, while the planned project area covers a total of 168 km². The decision provides for the applications for both areas to be combined into a single procedure.

Liivi Offshore OÜ must then develop an environmental impact assessment program within 18 months and submit an environmental impact assessment report within 24 months of its approval. Only after the report has been approved will the company be able to obtain a building permit, continue with the design and apply for a construction permit.

Source: Consumer Protection and Technical Regulatory Authority (TTJA), 09.09.2024.

On May 28, 2024, the Estonian Parliament (Riigikogu) adopted amendments introducing an innovative offshore wind project “building rights license” (superficies licence) system, which combines a building permit, water use permit and land use rights in a single document. This significantly simplifies procedures and reduces litigation risks. The license is granted by the Estonian Consumer Protection and Technical Regulatory Authority (TTJA), which effectively acts as a single point of contact for offshore wind projects.

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Source: Ministry of Climate (Republic of Estonia), 29.05.2024.

On 12 October 2023, the National Energy Regulatory Council (VERT) officially announced that a consortium consisting of Ignitis Renewables and Ocean Winds had won the first 700 MW offshore wind auction.
The project will be developed in the Baltic Sea, approximately 30 km from the coast, and aims to start generating electricity by 2030. This is the first commercial offshore wind project in the Baltic States to move from the planning to the implementation phase. Lithuania plans to reach a total offshore wind capacity of 4.5 GW by 2050.

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Source: OffshoreWIND.biz, 12.10.2023.

By September 2024, six offshore wind auctions had been held in Estonia. Ignitis Renewables won the first two – Liivi 2 (114.9 km², 1,400 MW) and Liivi 1 (77.7 km², 900 MW). The Saare 2.1 (163.8 km², 1,560 MW) and Saare 2.2 (88.5 km², 840 MW) auctions were won by the Norwegian company Deep Wind Offshore.

Two auctions – Saare 1 (88 km²) and Saare 3 (20.1 km²) – ended unsuccessfully as no bids were submitted. This is explained by unclear support mechanisms and low commercial attractiveness.
In total, the four projects awarded represent more than 4.7 GW of potential capacity, marking a significant step forward in the development of offshore wind in Estonia, but the failures confirm that both regulatory clarity and economic viability are critical for investors.

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Source: Consumer Protection and Technical Regulatory Authority (TTJA), compiled information