Lithuania has canceled its second 700MW offshore wind tender after receiving only one bid, according to Energy Minister Dainius Kreivys. The decision to cancel the tender was made amid reports of just one developer entering a bid and will be followed by market consultations to update the tender conditions.
Kreivys stated, “The Ministry of Energy will update the conditions of the tender and prepare it anew.” He also expressed his belief that the “geopolitical situation in our region” could have influenced the outcome of the failed round.
The government cited several reasons for the lack of interest, including the challenging global offshore wind market conditions. These include high interest rates, disrupted supply chains after the pandemic, more expensive equipment, and decreased interest of banks and funds in financing projects. These factors have led to the failure of tenders in other countries and the withdrawal of some developers from previously planned projects.
Kreivys emphasized the strategic importance of the second 700MW offshore wind park for Lithuania's energy self-sufficiency. He stated, “The second 700MW offshore wind park is a project of strategic importance and absolutely necessary to ensure Lithuania's energy self-sufficiency, therefore, after consultations with market participants, the tender will be announced again, and as soon as possible.”
Lithuania plans to have two offshore wind parks with a total capacity of 1.4GW, which will ensure half of the country's current electricity consumption. This move aims to achieve energy self-sufficiency from local sources and reduce dependence on electricity imports, aligning with Lithuania's strategic goals for national security, energy affordability, and international competitiveness.
