Lithuania Considers Delaying €3 Billion Project

Lithuania's state-owned energy firm 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.

Key points

• Ignitis Renewables invested €60.3 million in the project between 2023 and 2025.
• A National Audit Office assessment discovered that construction costs had risen by 27% since 2023 to €2.8 billion.
• Baltic Region's Largest Synthetic Drug Labs Busted in Lithuania.
• Ignitis Group CEO Darius Maikstenas remarked Lithuania needs more stable renewable energy sources, including offshore wind.
• The wind farm was originally scheduled to commence commercial operations in 2030.

Meanwhile, 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. Nevertheless, they want to keep the option of restarting construction when market conditions improve. Migrants Try to Enter Lithuania Through Drainpipe.

For context, a National Audit Office assessment discovered 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. Nevertheless, it has yet to secure long-term electricity purchase agreements with major consumers, raising further worries regarding its commercial prospects.

In practice, the firm has outlined three feasible options: suspending development, attracting international partners and European funding, or proceeding with construction while accepting the risk of higher electricity tariffs. Baltic Region's Largest Synthetic Drug Labs Busted in Lithuania.

In practice, the wind farm was originally scheduled to commence commercial operations in 2030. The proposed delay could push that target back by up to five years. Despite the uncertainty, Ignitis intends to continue preparatory work, including obtaining a construction permit in 2027.

Lithuanian authorities have additionally questioned whether the project remains financially justified. While Prime Minister Mindaugas Sinkevicius has ruled out state projects that lack economic justification, former Energy Minister Zygimantas Vaiciunas called the original development strategy a mistake.

For context, a separate tender for another 700 MW offshore wind farm additionally failed to attract sufficient competition. Stay Connected with ProPakistani. Obtain the latest international news and global stories wherever you prefer. Follow on Google Discover. Follow on Google News Join WhatsApp. See more ProPakistani stories in Google Search and Top Stories.

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