Lithuanian energy company Ignitis Group has selected Engie and EDPR joint venture Ocean Winds as a strategic partner to develop up to 700MW of offshore wind farms off the coast of Lithuania.
The partners plan to participate in the first auctions for offshore wind in Lithuania which are expected in 2023.
Ignitis Group said it started the search for a strategic partner for the development of offshore wind farm projects in the first quarter of 2019.
It established a dialogue with what the company called “European wind energy leaders” and received initial interest from more than 10 potential partners, with seven submitting official expressions of interest.
If the partners jointly develop the planned offshore wind farm in Lithuania, Ignitis Group will own 51% and Ocean Wind 49%.
Ignitis Group said it will also take a 5% stake in Ocean Winds’ Moray West offshore wind farm off the east coast of Scotland.
Ignitis Group chief executive Darius Maikstenas said: “The strong interest we received from European wind energy leaders in the opportunities for cooperation indicated that we are on the right track and that we can see the Baltic States among leaders of renewable energy in the future.
“We plan to implement a strategic partnership with OW, one of the largest offshore wind farm developers in the world, through a two-stage partnership process.
“Ignitis Group will initially gain valuable expertise by participating in a new offshore wind farm development project as a minority partner and then will participate in auctions for the development of specific projects in the Baltic Sea.
“Offshore wind technology is constantly evolving, and the Baltic Sea is considered one of the most promising places for the development of this type of energy.”
Ocean Winds chief executive Spyridon Martinis said: “We are proud to announce our strategic partnership with Ignitis Group that will make a substantial contribution to our business plan and growth strategy for new markets adding 700MW to our portfolio to be developed in Lithuania.
“At the same time this will improve our cooperation with key market players in geographies where we have strong leadership sharing our knowledge and experience to add value to our assets and shareholders.”
Maikstenas added: “In the updated long-term corporate strategy, which was presented in June this year, Ignitis Group is aiming to achieve 4GW of installed green generation capacity by 2030.
“Offshore wind projects will contribute a significant part of this capacity.
“Ignitis Group’s corporate strategy is also aligned with the targets of Lithuania’s National Energy Independence Strategy, that by 2030 will see wind power plants produce 50% of the country’s electricity.
“The strategic partnership with OW, one of the largest offshore wind farm developers in the world will allow the Group to gain experience in offshore wind projects in other countries, which will be used to develop offshore wind energy in Lithuania.”