Lithuania has cancelled its second 700MW offshore wind tender amid reports just one developer entered a bid.
Energy Minister Dainius Kreivys (pictured) said the auction will be held again following market consultations.
“The Ministry of Energy will update the conditions of the tender and prepare it anew,” he said.
Kreivys believes the “geopolitical situation in our region” could have influenced the outcome of the failed round.
Ignitis Renewables earlier said it had filed a bid in the round.
The government added the situation in the global offshore wind market has “changed dramatically and investors face many obstacles”.
“High interest rates, disrupted supply chains after the pandemic, more expensive equipment, and decreased interest of banks and funds in financing projects. This is evidenced by the failure of tenders in other countries and the withdrawal of some loss-making developers from previously planned projects.”
Kreivys added: “The second 700MW offshore wind park is a project of strategic importance and absolutely necessary to ensure Lithuania’s energy self-sufficiency, therefore, after consultations with market participants, the tender will be announced again, and as soon as possible.
“During consultations with market participants, we need to find out what specific conditions would maximise the attractiveness of the project and increase resistance to market fluctuations.”
Lithuania plans to have two offshore wind parks with a total of 1.4GW.
“The planned two parks of offshore wind power plants will ensure half of Lithuania’s current electricity consumption, which will allow self-sufficiency in electricity from local sources and eliminate dependence on electricity imports,” added the minister.
“These are the strategic goals of Lithuania, on which both the country’s national security, people’s trust in the state, the price of energy resources for our residents and the international competitiveness of our exporting business depend.”