Lithuania blames 'dynamically changing' global renewables for offshore wind auction delay

Baltic state cites 'changes in economic circumstances' as reason for postponement of round originally planned for this autumn

Beach at the Curonian Spit in Lithuania.
Beach at the Curonian Spit in Lithuania.Foto: DEA / R. VALTERZA/De Agostini via Getty Images

Lithuania has postponed the launch of its second auction for a 700MW offshore wind zone to January, citing "changes in economic circumstances" affecting the global renewables sector.

The Baltic nation had tendered off its first 700MW zone in the spring in an auction ignored by most big offshore wind players due to insufficient time for interested parties to prepare bids and flaws in the tendering design that included a negative bidding component in the form of a ‘development fee’.

Lithuania then had planned to auction off the second area this autumn, but the country’s energy ministry today (Tuesday) set the approximate new date after holding a public consultation with offshore developers and other interested parties.

“Due to changes in economic circumstances, the situation in the renewable energy sector worldwide is changing dynamically and this is influencing investors' plans," deputy energy minister Daiva Garbaliauskaite said.

"During the consultation year, our aim is not only to provide them with all the information they need about the planned auction but also to secure feedback from investors, which will help us to organise a competitive auction on the most attractive terms."

During today’s consultation which was attended by more than 100 participants, the government said that its about €193m support scheme for offshore wind had been approved by the European Commission.

The government for the second auction has scrapped the negative bidding component.

The 700MW offshore wind zone could produce up to 3TWh of green power per year, equivalent to a quarter of the Baltic nation’s power needs.

Wind speeds at the site during a year of measurements have averaged 9 to 9.6m/s at 100-200 metres altitude, the Lithuanian wind power association added on LinkedIn.

Lithuania through offshore wind is trying to reduce its dependence on electricity imports.

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Published 10 October 2023, 14:06Updated 10 October 2023, 19:18
EuropeLithuaniaBaltic SeaPolicyMarkets