Author: ZVG

Lithuanian government approves significant changes to 700 MW offshore wind auction rules

Following the announcement in November 2024 and suspension in January 2025 of the 700 MW offshore wind auction, the Lithuanian government has approved amendments to promote competition and reduce the impact on electricity prices. Key changes: price indexation reduced from 23 to 8 years (savings of ~500 million EUR), the auction will only be successful with at least two participants, consumer payments will only start after the park becomes operational (around 2033), profit tax may be redirected to finance public services, and the priority given to offshore wind over onshore wind and solar has been removed. The Ministry of Energy estimates that the park’s operation could reduce the average price of electricity in Lithuania by ~3 EUR/MWh. The amendments will be submitted to the Parliament (Seimas).

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Source: BalticWind.EU, 15.04.2025.

Participation in WindEurope 2025 in Denmark, Copenhagen

Under the project “Life-cycle of an offshore wind farm in the legal framework: the case of Latvia”, participation took place in the WindEurope Annual Event from April 8-10, 2025, in Copenhagen, Denmark. A poster presentation was given with a recorded oral report entitled “State-of-the-art of the legislative framework for the development of offshore wind farms in the Baltic States and Poland.” Continue reading “Participation in WindEurope 2025 conference”

Poland submits draft law to simplify offshore wind farm procedures and improve investment environment

In February 2025, the Polish government submitted amendments to the Act on the Promotion of Electricity Production in Offshore Wind Farms and other regulatory acts to improve the investment environment, accelerate project implementation and implement the requirements of the Renewable Energy Directive (RED III). These include conditional pre-qualification for participation in auctions, an intervention auction mechanism, the possibility for two projects to use one offshore substation, more flexible rules for the placement of turbine foundations, and the possibility for projects that did not receive full support in the first phase to participate in subsequent auctions.

The amendments also introduce a procedure for setting the euro exchange rate for calculating price caps, the development of digital renewable energy potential maps, accelerated development zones and municipal energy cooperatives, which would allow local communities to produce and manage their own energy.

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Sources: Chancellery of the Prime Minister of Poland, Baker Tilly Legal Poland, 17.03.2025.

Poland maintains leadership in the Baltic Sea with 90 offshore wind projects and a special law

Poland, which already has specific law on offshore wind energy in place since 2021 – the Act on the Promotion of Electricity Production in Offshore Wind Farms, has identified up to 90 project sites, according to 4C Offshore data. In total, Poland aims to develop up to 33 GW of capacity. The country plans to establish detailed marine spatial plans (1:25,000) and mark new zones with digital mapping and accelerated procedures. This legislative approach makes Poland a potential model for other Baltic countries.

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See Polish Wind Energy Association (PSEW); 4COffshore

RED III infringement procedures keep pressure on Baltic states

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Although Lithuania, Latvia, Estonia, and Poland have begun implementing the RED III requirements, the European Commission is continuing infringement proceedings against all four countries. These proceedings are most often related to the lack of formally approved status for renewables acceleration areas, the absence or incomplete functionality of a single contact point, and the lack of digital tools. The Commission’s guidelines clearly emphasize that without these components, Member States will not be able to fully announce tenders or attract EU co-financing. This regulatory pressure from Brussels is a factor that accelerates national reforms, but at the same time creates additional instability in investment planning. Legal certainty and a predictable timetable are important for international developers, but the current situation in the Baltics creates a lot of uncertainty. Many local governments and environmental agencies are not sufficiently prepared to implement reforms – there is a lack of staff, training, and interagency coordination. This shows that legal reforms are only the first step: actual implementation requires long-term institutional capacity and effective management.

On February 11, 2025, the Latvian Cabinet of Ministers approved the ELWIND offshore wind farm study area on the western coast of Latvia, covering an area of 200 km², moving it approximately 7 km further out to sea.

The decision was made in response to a citizens’ initiative and an environmental risk assessment, thus confirming the importance of public participation in the development of the project.

ELWIND is a joint project between Latvia and Estonia with a planned capacity of up to 2 GW and a target date for commissioning by 2035. It is considered a potential example of a cross-border renewable energy joint project as provided for in Article 9 of the Renewable Energy Directive (RED III).

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Source: Ministry of Economics (Republic of Latvia), 18.02.2025.

Although Latvia has a maritime spatial planning document with five priority study areas (~1648 km²), there is no specific offshore wind law yet. The draft law ‘On offshore wind park in Latvian offshore waters and the fourth Latvia-Estonia interconnection’ which was intended to regulate the planned offshore wind farm ELWIND on the Latvian side has not yet been adopted. Currently, the regulations originally developed for offshore mining are applied to offshore wind projects.

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See Marine Environment Protection and Management Law, Construction Regulations for Structures in the Internal Waters, Territorial Waters and Exclusive Economic Zone of the Republic of Latvia (Regulations of the Cabinet of Ministers No. 631, 14.10.2014.)

Presentation at the 2^nd FORTHEM Annual Conference

Under the project “Life-cycle of an offshore wind farm in the legal framework: the case of Latvia”, participation took place in the 2^nd FORTHEM Annual Conference “Connecting Worlds of Science & Society,” organized by FORTHEM alliance, including the University of Latvia. Continue reading “Presentation at FORTHEM conference”

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.