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On 16 July 2024, Lithuania’s Parliament adopted important amendments to the Law on Energy from Renewable Sources, following the cancelled offshore wind auction in April 2024. The auction was cancelled because only one participant registered, while the law required a minimum of two for the process to proceed. As follows, several changes were introduced:
- Extended Registration Deadlines: The amendments now allow for the extension of participant registration deadlines, giving potential bidders more time to enter the auction.
- Continuation with Single Participant: The new rules permit the auction to continue even if only one participant registers.
- Indexed Transaction Price: The winning transaction price would be recalculated annually, by taking into account the annual inflation. The annual inflation rate would be applied to the difference between the transaction price and the market price, providing stability and reflecting market conditions over time.
- Minimum Development Fee: A minimum development fee of at least EUR 5 million is now required for projects where no state support is requested.
- Indexed Development Fee: Similar to the transaction price, the development fee, payable over five years, will also be indexed annually to maintain its value against inflation.
In late August 2024, the National Energy Regulatory Council confirmed plans to relaunch the offshore wind auction on 18 November 2024. These amendments are expected to create a more competitive and efficient auction process, driving the growth of Lithuania’s offshore wind capacity.
