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2020.01.16 15:39

First wind farm without state support a 'breakthrough' for Lithuania's green energy

BNS 2020.01.16 15:39

Lithuania's Energy Minister Žygimantas Vaičiūnas has hailed the first green energy action a "breakthough" for Lithuania as the winner asked no government support, he said on Thursday. 

"It is a breakthrough for Lithuania's renewable energy, since it is the first time that investments are made into wind farms without state support," the minister said in a press release.

"Lithuania has evidently managed to create a particularly attractive environment for energy-related investments," he said. "It means lower dependency on electricity import, more jobs, and higher income for the state".

Read more: Lithuania's green goals troubled by agriculture, transport sectors – energy minister

The National Energy Regulatory Council (VERT) announced Windfarm Akmenė One as the winner of the country's first technology-neutral auction on Thursday.

The foreign-owned company that plans to build an 18-turbine wind farm with a total capacity of 90-101 megawatts (MW) in the northern district of Akmenė.

Read more: Fivefold increase of Lithuania’s solar energy producers expected – 10,000 residents to generate electricity

The winner will be allocated the entire annual production quota of 0.3 terawatt-hours (TWh) that was auctioned, but will receive no premium on top of the market price, which means that it will develop its project without state support.

The Energy Ministry expects that it will not be the only new power farm developed without state support.

Read more: Climate action plan makes way through Lithuanian government

"Currently, the overall capacity of authorisations to develop electricity production using [Renewable Energy Systems (RES)] issued to investors reaches 290 MW," it said in the press release.

"These new RES power plants that could start operating in 2023 would generate over 1 TWh of electricity, which would satisfy up to one-tenth of electricity demand in Lithuania."