Key Takeaways
- Lithuania’s state-owned energy company Ignitis Group proposes delaying a 700 MW offshore wind farm project.
- The project, initially scheduled for 2030, could face a five-year delay due to rising costs and financial concerns.
- Ignitis Group plans to continue preparatory work, including obtaining a construction permit in 2027.
Lithuania’s state-owned energy company Ignitis Group has proposed delaying its planned 700-megawatt (MW) offshore wind farm in the Baltic Sea, citing rising construction costs and worsening market conditions.
The project, estimated to cost around €3 billion, has seen construction costs increase by 27% since 2023, reaching €2.8 billion, while projected investment returns have dropped by 40%.
Ignitis Group CEO Darius Maikstenas stated that Lithuania needs more stable renewable energy sources, including offshore wind, to meet its energy demands.
The company has outlined three possible options: suspending development, attracting international partners and European funding, or proceeding with construction while accepting the risk of higher electricity tariffs.
Despite the uncertainty, Ignitis plans to continue preparatory work, including obtaining a construction permit in 2027, to ensure the project remains on track.
Lithuanian officials have expressed doubts about the project’s financial viability, with former Energy Minister Zygimantas Vaiciunas calling the original development strategy a mistake.
Prime Minister Mindaugas Sinkevicius has ruled out state projects that lack economic justification, adding pressure to the project’s future.
A separate tender for another 700 MW offshore wind farm also failed to attract sufficient competition, highlighting the challenges in the sector.
The proposed delay could push the project’s commercial operations target back by up to five years, from the originally scheduled 2030.
