Lithuania to Restart 700MW Offshore Wind Tender

April 16, 2025
By Bojan Lepic

The Lithuanian government has announced plans to relaunch a tender for a significant offshore wind project in the Baltic Sea, with a target output of 700 megawatts (MW). This decision follows a prior suspension of the tender in January, primarily aimed at protecting consumers from potential hikes in electricity prices.

Background of the Tender

The original tender, first launched in November 2024, did not draw enough competitive proposals, prompting the government to reassess its terms. In response to this, amendments were made to optimize conditions for participating developers. The key change involves reducing the indexing period for the transaction price. Under the new terms, the price will be indexed for eight years from the date a winner is confirmed, as opposed to the previous period of 23 years. This adjustment is anticipated to diminish the financial burden on the government by approximately €500 million (around $570 million).

Requirements and Next Steps

For the tender to be deemed valid, it requires participation from at least two bidders. The government has submitted the revised terms to parliament for consideration, and a final decision is expected to be reached by the end of April or early May. If the parliament approves the changes, the relaunch of the tender could occur as soon as early June.

Lithuanian Energy Minister Zygimantas Vaiciunas has called on developers to actively participate in this upcoming contract for difference auction. The auction will set a ceiling price of €125 ($138.5) per megawatt-hour (MWh), providing an incentive for bidders to engage in the project.

Previous Tender Outcome

In a prior round of bidding for offshore wind development, the tender was awarded to a partnership between Lithuanian utility Ignitis and Ocean Winds, marking a significant step in the nation's commitment to renewable energy. The relaunch of this new tender indicates Lithuania's ongoing efforts to expand its renewable energy capacity and meet its energy goals.

This latest initiative reinforces Lithuania's strategy to enhance energy security while promoting sustainable development through renewable energy sources. The government aims to attract competitive bids to ensure an efficient and economically feasible project.

For further updates on the progress of this tender and other renewable energy initiatives, stakeholders are encouraged to follow announcements from the Lithuanian government and relevant energy authorities.