Lithuania suspends offshore wind tender amid concern it may flop again
Government blames 'less active' summer period for lacklustre interest as energy regulator sets new date in October
Lithuania’s energy regulator has temporarily suspended the country’s second offshore wind tender amid concern the auction for a 700MW site may not be successful.
“The temporary suspension of the tender is necessary to ensure successful results,” the Baltic country’s energy ministry said.
“The decision was made taking into account the fact that the tender took place during the summer period, when market participants are objectively less active.
“Political processes taking place during the summer also influenced investors’ decisions to participate in the tender and invest in Lithuania.”
Alongside challenges in the global offshore wind market, such as high interest rates, more expensive equipment and a decreased interest of banks and funds in financing projects, Lithuania also has difficulties persuading any of the sector’s heavyweight players to bid for a Baltic Sea area very close to the Russian exclave of Kaliningrad.
The ministry indeed said that it received indications from potential bidders that the current September 8 deadline for submitting documents was too short to properly prepare for participation in the tender, including detailed financial, technical and legal assessments.
Auction procedures will be resumed on 6 October 2025, with the final submission deadline now set for 7 October. The government needs the tender to be completed this year to ensure compliance with the support scheme agreed with the European Commission.
Lithuania’s National Energy Regulatory Council (NERC) last year had launched the second tender for the first time, stressing the planned wind farm will enhance "national security" as the Baltic state is weaning itself off Russian energy imports.
The price ceiling then was set at €107.18 ($125.94)/MWh, but after only domestic developer Ignitis put in a bid, the government postponed the auction, blaming a lack of demand and geopolitical tensions. The new price ceiling this year is set at €125/MWh
The second offshore wind farm project is slated to be developed in an area of about 136 km² and will be located about 30 km from the coast. Both Lithuanian offshore wind farms are estimated to meet up to half of the country’s electricity needs once built.
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