Lithuania’s National Energy Regulatory Council (NERC) on Thursday pronounced the joint venture (JV) between Ignitis Renewables and Ocean Winds as the official winner in the Baltic state’s inaugural 700-MW offshore wind tender.
The JV offered a development fee of EUR 20 million (USD 21.1m) for the offshore wind project, the amount that will be paid to the state budget within 60 calendar days, the regulator said as it declared the tender closed.
Ignitis Renewables, a subsidiary of Lithuanian energy company Ignitis Grupe AB (VSE:IGN1L), confirmed Thursday’s news in a press release, stating that its win followed the screening of the provisional winners regarding their compliance with national security interests.
In the wake of NERC’s announcement, Ignitis Renewables and Ocean Winds, itself a JV between Engie SA (EPA:ENGI) and EDP Renovaveis SA (ELI:EDPR), must set up a joint company in Lithuania within three months. This company will be awarded the development and operation permit, which will grant it the right to use a site in Lithuania’s Baltic Sea for power generation for 41 years, Ignitis said.
The designated maritime area for the country’s first offshore wind farm spans around 120 square kilometres (46.3 sq miles). It is at least 37 kilometres (23 miles) away from the coast and around 60 kilometres away from the Port of Klaipeda.
The JV partners expect their 700-MW wind farm to feature 35 to 50 turbines with a maximum height of around 300-350 metres, although the final design will depend on studies, environmental impact assessment, available technologies, among others.
NERC added that it expects the wind farm to be raised by 2030. It is estimated that the facility will generate around 3 TWh per year, which would help meet up to a quarter of Lithuania’s electricity needs and reduce its dependence on electricity imports.
The news from NERC comes just two days after the Lithuanian energy ministry announced that the country’s second 700-MW offshore wind tender had to be postponed for January 2024 due to the unstable economic environment and its effects on the renewable energy industry.
(EUR 1.0 = USD 1.056)
Source: renewablesnow
