Lithuania’s second offshore wind tender, worth more than 3 billion euros, has been declared void after receiving only one bid, the National Energy Regulatory Council (VERT) said Wednesday.
The tender, relaunched Monday and closing Tuesday midnight, sought a developer for a 700-megawatt offshore wind farm in the Baltic Sea. It would have proceeded only if at least two bids were submitted.
State-owned energy company Ignitis Group was the sole applicant, submitting a proposal through its subsidiary Ignitis Renewables Projektai 5. The company, in partnership with global offshore wind developer Ocean Winds, is already developing Lithuania’s first offshore wind project of the same capacity and value. (Corrected Oct 8, 15:00)
“The tender committee today decided to recommend that VERT consider the tender void,” VERT said in a statement. Chair Renatas Pocius told reporters the regulator expects to approve the recommendation Friday, making the decision official.
VERT said the government will have to decide whether to announce a new tender.
According to Ignitis Group, the result will not affect its 2025 adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) or investment forecasts.
The government temporarily paused the tender in early September, citing low market activity during the summer and investor uncertainty caused by political factors. Officials also pointed to unfavourable global conditions in the offshore wind sector and complaints from potential participants that they had insufficient time to prepare.
Energy Minister Žygimantas Vaičiūnas previously said several potential developers had expressed interest in the project.
Not giving up
Lithuania is not giving up plans for the second offshore wind farm in the Baltic Sea, Energy Minister Žygimantas Vaičiūnas said, adding that consultations on the tender will be held with the European Commission.
“Plans to develop the project remain. We will say how and under what parameters it will be implemented after consultations with the European Commission, which we will begin soon,” the minister told reporters on Wednesday.
“We will certainly consult with the government and the Seimas in order to ultimately decide on the specific parameters of this project,” he added.
The government’s incentive scheme for the second park, known as the Contract for Difference (CfD), will be discussed with the EC, according to Vaičiūnas, because the earlier agreed state support deal expires this year.
Under the CfD model, if the electricity sales price agreed with the farm developer is lower than the minimum threshold, the state would pay the farm owner the difference, and if it is higher, the owner would compensate for the difference.
The terms of the future tender should be improved to make the project more attractive for developers, but without increasing costs for consumers, Vaičiūnas insisted.
He said it is possible that the new tender rules may exclude state support, adding, however, that the conditions would depend on discussions in Brussels: “We will consult with the EC on the possible options, then the government will decide, and then the Seimas will decide”.
Correction: an earlier version of the story wrongly suggested that Ignitis has partnered up with Ocean Winds to bid for the second wind farm contract.
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