The European Commission has approved a 193 million euro Lithuanian scheme to support offshore wind farms to foster the transition towards a net-zero economy, in line with the Green Deal Industrial Plan.
The scheme was approved under the State Aid Temporary Crisis and Transition Framework, adopted by the Commission on 9 March 2023 to support measures in sectors which are key to accelerate the green transition and reduce fuel dependencies.
The Lithuanian scheme will be open to companies active both in Lithuania and in other Member States for participation in a tender for the authorisation to develop and operate a new offshore wind power plant. Under this measure, the aid will take the form of a variable premium under a two-way contract for difference (CfD) for a duration of 15 years.
The beneficiary will be entitled to receive an aid equal to the difference between the strike price and the market prices for electricity as soon as the market price is below the strike price. However, the beneficiary will have to pay the difference between the two prices to the State as soon as the market price is above the strike price.