Lithuania’s second offshore tender in jeopardy

Bidding under Lithuania's second offshore wind tender closed yesterday [14 April 2024] with just one bid, government sources confirmed.

Ignitis Renewables is the only bidder vying for the 700MW mandate.

A representative for the procuring authority in charge of this tender, the National Commission for Energy Control and Prices (NCC), said the interest in the process was far less than they originally anticipated.

Given the current circumstances, the public authority is set to discuss its options in a meeting scheduled for this Thursday [18 April 2024], which is set to decide the future of this project.

The NERC has the option to declare the process "void" and relaunch the tender. The decision is scheduled to be confirmed later this week.

This is the first offshore wind mandate in Lithuania to be backed by a Contract for Difference (CfD) tariff scheme.

Lithuania's National Energy Regulatory Council (NERC) initially planned to progress procurement under this tender only if it attracted at least two "viable bids".

On offer is the development rights to a 700MW fixed foundation wind farm located in the Lithuanian Baltic Sea.

This is the second offshore wind farm to be procured by the Lithuanian authorities and is the first in the country to be backed by a CfD.

Lithuania has opted for a two-way CfD scheme with a notional price floor of €63.31/MWh and price ceiling of €107.18/MWh.

Under this scheme, if the market price of electricity falls below the agreed price floor, the government has agreed to pay the developer the difference and if the market price exceeds the ceiling, the energy producer is expected to return the favour with the price variance.

If progressed, the mandate will be awarded on 31 May [2024].

Ignitis plans to find a development partner if it emerges victorious in this process.

The Lithuanian renewables developer also participated in the country's first offshore wind tender – another 700MW facility.

It emerged as the preferred bidder under the previous tender which was awarded last October [2023] and is set to deliver the fixed foundation project in partnership with Ocean Winds.