Challenges force Lithuanian offshore wind farm delay

Ignitis Group has proposed postponing the development of its Curonian Nord offshore wind farm in Lithuania, citing market uncertainty, financing challenges and the need to align the project timetable with delivery conditions.

The 700MW proposed site would have been Lithuanian’s first.

The Lithuanian energy group has submitted proposals to the country’s Ministries of Energy and Finance following recommendations from the National Audit Office. Its preferred option is to delay implementation until market, financing or technology conditions improve.

“Lithuania needs to increase its energy generation capacity from stable renewable sources, and offshore wind is one of the most stable,” said CEO Darius Maikštėnas. “However, it is important to choose a course of action that not only creates the greatest value but also serves the interests of the state the best in the further development of the offshore wind farm project.”

The group cited difficulties securing long-term power purchase agreements, partly due to delays in large-scale electrolysis projects across Europe, as well as constraints in the offshore wind turbine supply chain. These factors could complicate project financing and push back the start of commercial operations, the group says.

The proposed changes would align development and permitting schedules with the time required to deliver an offshore wind farm, link financial commitments to the start of construction and accelerate procedures for onshore infrastructure.

Despite the proposed postponement, Ignitis Renewables intends to continue preparatory work and investment needed to obtain a construction permit in 2027. The project’s future schedule remains under discussion with the Lithuanian authorities.

The proposal signals a potential delay rather than cancellation, with Ignitis Group seeking to preserve the option of proceeding when conditions become more favourable.

Lithuania has around 10 offshore wind farm projects listed at various stages of development, but none operating or under construction, according to offshore wind industry database TGS 4C.