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, worsening market conditions, and doubts over its financial viability.
The project is estimated to cost around €3 billion. According to independent Lithuanian news agency BNS, Ignitis Group and its renewable energy subsidiary plan to ask the Energy and Finance ministries to revise the development schedule. However, they want to keep the option of restarting construction when market conditions improve.
Ignitis Group CEO Darius Maikstenas said Lithuania needs more stable renewable energy sources, including offshore wind.
A National Audit Office assessment found that construction costs had risen by 27% since 2023 to €2.8 billion. Meanwhile, projected investment returns had dropped by 40%.
Ignitis Renewables invested €60.3 million in the project between 2023 and 2025. However, it has yet to secure long-term electricity purchase agreements with major consumers, raising further concerns about its commercial prospects.
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.
The wind farm was originally scheduled to begin commercial operations in 2030. The proposed delay could push that target back by up to five years. Despite the uncertainty, Ignitis plans to continue preparatory work, including obtaining a construction permit in 2027.
Lithuanian officials have also questioned whether the project remains financially justified. Former Energy Minister Zygimantas Vaiciunas called the original development strategy a mistake, while Prime Minister Mindaugas Sinkevicius has ruled out state projects that lack economic justification.
A separate tender for another 700 MW offshore wind farm also failed to attract sufficient competition.
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