Lithuania Weighs Delay to Its EUR 3 Billion Baltic Offshore Wind Farm

Lithuania's state-controlled energy group Ignitis has proposed postponing the country's first offshore wind farm, a 700 MW project in the Baltic Sea expected to cost about EUR 3 billion. In a statement issued on 21 October, Ignitis Group and its subsidiary Ignitis Renewables said they would ask the energy and finance ministries to adjust the implementation schedule, while keeping the option to restart the project later.

The proposal follows a review by the National Audit Office, which found that market changes since 2023 have raised the project's cost by 27% and cut its projected returns by 40%. The audit office recommended that a decision on whether to continue be taken by the end of the year. The Seimas Audit Committee has since asked the government to coordinate the process and asked the Energy Ministry to lead an assessment of the project's prospects.

Ignitis has set out three options in its cost-benefit analysis. The first is to freeze the project. The second is to look for partners in neighbouring countries and for European Union funding. The third is to go ahead as planned while raising the final electricity tariff paid by consumers. Ministries are expected to make a final decision by the end of 2026.

The company says preparatory work continues. A construction permit is expected soon, and Ignitis Renewables is continuing the work needed to secure a construction permit in 2027. Ignitis Group chief executive Darius Maikstenas stressed the need for stable renewable generation and for choosing the path that creates the most value. Prime Minister Mindaugas Sinkevicius said Lithuania would not rush its offshore wind decisions or pursue economically unjustified state projects.

The episode shows how the economics of offshore wind have shifted across Europe in recent years, with higher costs for materials, financing and construction weighing on projects that were planned when conditions were more favourable. For Lithuania, the stakes are practical as well as financial. The country has been working to reduce its reliance on imported electricity and to build domestic clean generation, and a large offshore farm was meant to be a cornerstone of that effort. A delay does not cancel that goal, but it does postpone the generation capacity and the emissions benefits that come with it.

The decision is also a test of public governance. An independent audit has put numbers on the risk, a parliamentary committee has asked for coordination, and the state-owned developer itself is recommending caution. How the ministries weigh consumer tariffs against climate and energy security objectives will signal how the country balances public money, household bills and its clean energy ambitions. Ignitis has made clear that a freeze would be reversible, which leaves room for a revised project, a regional partnership or EU co-funding to bring the farm back on firmer financial footing.

Why it matters

Delaying 700 MW of offshore wind pushes back clean generation that would help displace fossil power and cut emissions. Pausing is not the same as abandoning, but every year of delay adds to the gap between climate targets and delivered capacity. The challenge is to restructure the project so it can be built affordably rather than lose its climate benefit altogether.