The first steps of newcomers in the race for offshore wind farms in European countries

As the world is increasingly turning to offshore wind energy, the countries of the European Union (EU) are setting high goals for themselves – by 2050, the capacity of offshore wind power plants reaching 300 gigawatts (GW) should be installed here. Increased production of electricity in offshore wind farms would significantly contribute to the creation of a climate-neutral economy, climate warming of no more than 1.5 ºC and the energy independence of many countries. Newcomers – the Baltic countries – are also entering the sector, which has been developed for several decades. Will Lithuania, which is the leader in terms of the installed capacity of onshore wind power plants, also become a pioneer in offshore wind parks?

Marine energy is an important direction for the entire EU in order to achieve the goals of the European Green Deal and the reduction of climate change, as well as to reduce the import of energy resources. The Union has developed an offshore energy strategy, which sets targets of 60 GW of offshore wind turbine park installed capacity by 2030, 300 GW by 2050.

In order to achieve the goals set by the EU, in 2022 The representatives of the North Sea countries signed the declaration, and already this year they renewed it by increasing the set goals – now the goal is to develop 120 GW of offshore wind power by 2030. and 300 GW by 2050.

“Representatives of the countries of the Baltic Sea, whose total wind energy potential is estimated by industry experts at 93 GW, in 2022 signed the Marienburg Declaration and committed to developing at least 19.6 GW of offshore wind farm capacity by 2030. However, recently the targets have been revised and increased by several countries. So it seems that the goals set in the European Union offshore wind energy strategy for 2030 could be exceeded if the supply chain of the industry satisfies the need for equipment” – says Paulius Petrašiūnas, representative of the European Energy Lithuania company.

The Marienburg Declaration indicates that Lithuania by 2030 will aim to develop 1.4 GW of offshore wind energy capacity, neighboring Poland and Latvia 12 GW and 0.4 GW, respectively, and Estonia – 1 GW of capacity.

“In Lithuania, Latvia and Estonia, experts have calculated the total potential of 23 GW of installed power in the sea areas favorable for the development of renewable energy. After using the full potential of the offshore wind farms in the Baltic States, the amount of electricity produced would exceed the current electricity consumption of the Baltic States three times. So, a lot of work needs to be done on electricity connections with other countries and increasing electricity consumption in countries enabling this potential,” he says.

Reached 32 gigawatts

According to WindEurope, the organization that unites the European wind energy industry, the installed capacity of offshore wind farms on the old continent reaches 32 GW. The leaders of offshore wind energy in Europe are the United Kingdom (UK), Germany and Denmark, which built the first offshore wind farm in Europe 32 years ago. Other strong countries in this sector include the Netherlands, Belgium, Norway, Sweden, Spain, the Faroe Islands, Portugal and Ireland.

In the first half of this year, 2.1 GW of offshore wind power capacity was developed in Europe, which strengthened the energy sector of the Netherlands, the UK, Germany and Norway.

A breakthrough has recently been achieved by Ireland, which is slightly larger than Lithuania. The country, which has one offshore wind farm, held its first offshore wind farm auction in May, with four projects winning a total of 3 GW.

One of the sole leaders in offshore wind farms, Germany, also held its largest ever auction in July, winning a 7 GW project.

Baltic and Scandinavian regions are active

The Baltic and Scandinavian regions are currently considered one of the most active in offshore wind energy – by 2030, many new offshore wind parks are planned to be installed here, newcomers are entering the sector.

Finland is planning for 2023 and 2024. call for tenders for five offshore wind farm projects with a total capacity of 6 GW. Until 2029 Sweden’s 1.5 GW of offshore wind farms will contribute to the country’s 2040 goal. to reach 33.3 GW of installed capacity in marine parks.

Neighboring Latvia and Estonia are developing a joint 700- to 1,000-megawatt (MW) offshore wind project called Elwind. The necessary studies are currently being conducted, and the auction, after which the developer will be able to prepare to build the power plants, is expected in three years.

In addition, Estonia has also announced an area for wind farms in its marine territorial plan, the total potential of which is estimated by the Danish consultants Aegir Insights to be about 12 GW, and the first auction to be held at the end of this year, the terms of which have already been made public.

Meanwhile, business interest in the development of offshore wind farms in Estonia is high: up to 10 applications for the right to develop offshore wind farms have been received. Eligible applicants should still compete in auctions for this opportunity.

According to various calculations, at least 4 offshore wind power parks could be developed in the Lithuanian maritime zone. The results of the auction of the first 700 MW wind park to be developed without state aid in the Baltic Sea, announced in mid-July, are still awaited, the Ignitis group company “Ignitis renewables” together with the international offshore wind park developer “Ocean Winds” is named as the potential winner, and the start of the next auction will be published in the fall.

“It is expected that by 2030 two offshore wind farms with a total capacity of 1.4 GW should appear at the border of Latvia and Lithuania. Considering the boom in marine energy projects in European countries, their complexity and possible supply chain complications, this is a very ambitious and difficult deadline even under all the most favorable circumstances. However, the development of offshore wind energy is very important for the whole country and for each electricity user individually – both for the taxes paid to the budget and for the lower price of electricity,” says Linas Sabaliauskas, representative of the Lithuanian Wind Power Association (LVEA).

Good practice is worth using

L. Sabaliauskas notes that although Lithuania was the first among the Baltic countries to announce an auction, the country is still taking the first steps in wind energy, so it is useful to use the good practices of foreign countries that have been operating in this market for much longer.

“European countries have already installed 32 GW of offshore wind farms, so there is no doubt that they have learned many lessons along the way that are worth taking advantage of.” For example, to offer the already created infrastructure to investors, so that when he comes to a new country, he does not have to unravel the country’s specific legal and energy system for several years, while at the same time creating the necessary energy infrastructure for business development according to the wishes of local operators”, he reasoned.

For his part, P. Petrašiūnas notes that the country’s institutions are already using certain good practices from countries with more experience in offshore wind energy. As an example, the interviewer cites the reserved power for the first parks in the transmission network and the infrastructure corridors being prepared for the connection of the first two offshore parks to the onshore electricity transmission network.

“Reserved capacity provides a guarantee that when the time comes, in a few years, there will be free capacity for the connected offshore wind farm at the designated point of connection to the transmission grid. And the corridor being prepared reduces the burden and risk for developers, who will not only not have to carry out studies and other territorial planning procedures in order to determine the location of the corridor in the sea and on land, but also will not have to solve the puzzle of facing the challenges of choosing the land needed for the infrastructure corridor on land,” says the interviewer. .

Offshore wind energy expert P. Petrašiūnas adds that although Lithuania has a small part of the Baltic Sea territory and a relatively small potential in certain areas, the country would benefit from using foreign practices and intensive planning, for example, creating a clearer long-term auction plan for the two remaining offshore wind farm development areas .

“Perhaps new areas for the development of marine energy in deeper waters should be determined by reviewing the areas of the exclusive economic zone of the Republic of Lithuania in the Baltic Sea intended for the development of renewable energy. This could be done not only by cooperating with other countries in the development of electricity or other energy carrier connections, but also by working with industry and potential investors on a plan for how locally generated electricity could be used to create products and services and thus generate higher added value for the state and its to people,” says the interviewer.