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International Internet Magazine. Baltic States news & analytics Wednesday, 28.02.2024, 02:33

Lithuanian government paving way for wind turbine production in Klaipeda

BC, Vilnius, 03.12.2020.Print version
With Lithuania planning to build wind farms in the Baltic Sea, the government on Wednesday took steps to set up infrastructure for turbine production, assembly and storage operations in the port of Klaipeda, writes LETA/BNS.

The measure will also allow shipbuilding and repair companies to expand. Their development is now hampered by the port's failure to upgrade outdated quays as the return on investment is too low. 


The Cabinet approved the Transport Minister's proposal to allow the port to build and develop the infrastructure necessary for shipbuilding and repair yard and for the production, assembly or storage of wind turbines and their components. 


It also reduced the port authority's required average annual return on investment to 2%, from 6%. 


Deputy Transport Minister Gytis Mazeika has told that the reduced return requirement would only apply to specific activities that do not generate financial returns but are important for Lithuania, such as ship repair operations that employ a large number of people.


According to the government resolution, drafted by the Transport Ministry, the port infrastructure used by Klaipedos Laivu Remontas (Klaipeda Ship Repair Yard) and Vakaru Laivu Gamykla (Western Shipyard) was built 50 years ago and is worn out, and the two companies are asking for around 77 mln euros, not including VAT, to be invested in it. 


Shipbuilding and ship repair enterprises are the port's largest employers with a total workforce of around 2,000 people. They also hire almost 2,000 contractors and provide services to the Navy.


Upgrading their infrastructure would help them grow their operations and revenue, create new jobs, and provide services to NATO ships. Wind turbines could be produced or stored there, too.


Several legislative amendments to build a 700-megawatt wind farm in the Baltic Sea have already been tabled to the Seimas. If the parliament passed them by Christmas, an offshore wind auction could take place in 2023.


Lithuania's state-controlled energy group Ignitis Grupe has unveiled plans to invest in a wind farm in the Baltic Sea jointly with its strategic partner Ocean Winds, a joint venture by Europe’s energy leaders Engie and EDPR. 


Lithuania's business group Achemos Grupe also has such plans and wants to build a factory to produce wind turbine components in Klaipeda where it owns Klasco, one of the port's biggest operators. 

Denmark's renewable energy company Orsted is also interested in the future auction.


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