Lithuania’s National Energy Regulatory Council on Monday launched a new bid for tenders on the development of a second 700 MW offshore wind park in the Baltic Sea, with a value of around EUR 3.13 billion.
The first attempt earlier this year failed because the required number of two bidders was not satisfied. As a result of this, Lithuania’s Seimas (Parliament) voted this summer to simplify the requirements.
The new rules say that just one bidder will be necessary instead of the previously required two. The price at which electricity is sold from the new wind farm will be subject to annual recalculation. Part of the mix will involve state incentives.
Unlike the last tender, this time participants will have access to a 15-year public initiative. The tender will go to the bidder offering the highest development fee, which must be at least EUR 5 million, or to the bidder who requests the lowest annual subsidy from the state at the lowest price.
The NERT said on Thursday that the winner of the tender will have to sell generated electricity at a cost of EUR 75-126 per MWh.
The prospective developer will not be required to conduct offshore site surveys and take other steps on the development and construction of the relevant infrastructure. Nor will an environmental impact assessment be required.
Bidders will have 120 days from November 19 to March 18 to register and submit their documents. The process will be open to companies or consortia with own capital amounting to at least 20% of the project’s total estimated value of EUR 3.126 billion.
Lithuania’s Ignitis Group is a state-owned energy company, and it has already announced its intention to take part in the bid for tenders. The largest oil company in Poland, Orlen, is also reportedly considering the possibility of doing so.
Source: BNS
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