Connection of offshore wind farm to the electricity transmission grid of Lithuania

Report:
Year registered: 2021
Type:
Energy
Status:Registered
3SI countries proposing the project:

Lithuania

Participating 3SI countries:

Lithuania

Partner countries:

* not part of the 3Seas Initiative
Main objectives:

• Implement a reliable and cost-efficient connection of offshore wind park to mainland electricity transmission grid; • Enable achievement of renewable energy goals stated in the Lithuanian National Energy Independence Strategy and National Energy and Climate Action Plan; • Will increase security of electricity supply to mainland and to the region.

Short description:

Following goals stated in Lithuanian National Energy Independence Strategy and National Energy and Climate Action Plan, Ministry of Energy of Lithuania is set to announce a tender to select the owner and developer of a 700 MW offshore wind farm to be built off the coast of Lithuania in the Baltic Sea. The 700 MW wind farm in the Baltic Sea will cover up to 25 percent of Lithuania's annual electricity demand, thus reducing the need for electricity imports. The tender is scheduled to be held in 2023. It may or may not require interested parties to include costs of electrical connection to mainland grid in their auction bids. The responsibility of offshore grid development is yet to be decided and approved by the Parliament of Lithuania (Seimas). It is expected that related laws shall be approved in 2021. In both cases – if the connection responsibility is assigned to electricity transmission system operator (hereinafter – TSO) or wind farm investor, the offshore wind connection project may benefit by attracting financing from the 3SIIF. The scope of the connection project including but not limited to shall consist of construction of offshore substation, laying of offshore export cable, expansion of onshore substation to which the wind park shall be connected. Prior to the auction, the approved spatial planning and environmental procedures – the special plan, the strategic environmental impact assessment, and the environmental impact assessment – will be performed by the Lithuanian Energy Agency.

Calendar of implementation:
  • 2020-2023
    Planning

    Preparatory work 2020-2023

  • 2024-2028
    Construction

    Construction and implementation 2024-2028

Budget:

Budget (Total cost, Secured financing and its sources, Financing gap) Total (€): 200/400 million Eur % of total has secured financing: 0 %

200M0%
secured
Financing sources:
CEF
3SIIF
Other EU funding
EIB

In case the connection responsibility is assigned to the TSO, the project may be financed via electricity tariff, seek CEF, other EU funding or 3SIIF. Depending on the chosen model, the revenue structure of the project may vary - revenue may come from regulated electricity tariff (in case of TSO) or it may be included in the bid that won the auction (in case of wind park owner).