The European Commission has given its approval to a €193m scheme proposed by Lithuania, aimed at supporting offshore wind parks as part of the country's efforts to transition towards a net-zero economy, aligning with the Green Deal Industrial Plan. This scheme is endorsed under the State Aid Temporary Crisis and Transition Framework, which was established by the Commission in March 2023, to assist sectors crucial for accelerating the green transition and reducing dependence on fossil fuels.
Lithuania's scheme involves supporting the development and operation of a new offshore wind power plants in the Baltic Sea with a capacity of 700 MW. Companies from both Lithuania and other EU member states can participate in a competitive bidding process, with the aid taking the form of a variable premium under a two-way contract for difference (CfD) lasting 15 years. The beneficiary will receive aid when the market price for electricity is below a specified "strike price" and must repay the difference when the market price exceeds the strike price. The Lithuanian scheme will be granted before 31 December 2025.
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