Lithuania's Second 700 MW Offshore Wind Tender Fails Due to Single Bidder

Second Offshore Wind Tender Declared Invalid

Lithuania's National Energy Regulatory Council (NERC) has confirmed the failure of the country's second offshore wind tender, aimed at developing a 700 MW project in the Baltic Sea. The tender was deemed invalid as it attracted only one participant, Ignitis Group, which contravenes national legislation requiring a minimum of two bidders. The announcement was made on October 8, 2025, following the close of the application period.

Tender History and Revised Conditions

This marks the second time this specific 700 MW offshore wind tender has failed, with a previous attempt in April 2024 also being cancelled due to insufficient bids. The application period for the most recent tender initially ran from June 9 to September 8, 2025, before being temporarily suspended. It was subsequently reopened from October 6 to October 7, 2025. In an effort to enhance attractiveness and reduce risk for investors, the government had revised the tender conditions. These revisions included the option of state support through a two-way Contract for Difference (CfD), offering a tariff range between €75.45/MWh and €125.74/MWh. Additionally, the indexation period for the winning price was reduced from 23 years to 8 years, a change estimated to cut state support needs by approximately €500 million.

Legal Basis for Invalidation and Sole Bidder

The tender's invalidation is based on Article 22 (10) of Lithuania's Law on Renewable Energy, which explicitly states that a tender 'is considered not to have taken place if fewer than two participants register to take part in it.' The sole entity to submit an application was Ignitis Group, a Lithuanian state-owned energy holding company, through its subsidiary Ignitis Renewables. Ignitis Group, in partnership with Ocean Winds, successfully secured Lithuania's first offshore wind tender in 2023.

Implications for Lithuania's Energy Independence

The stalled tender represents a challenge to Lithuania's ambitious renewable energy targets. The 700 MW project is crucial for the country's energy independence, with estimates suggesting it could generate around 3 terawatt-hours of green electricity annually, meeting up to a quarter of Lithuania's current electricity demand. Lithuania aims to develop two offshore wind farms with a combined capacity of 1.4 GW by 2035, which are projected to cover up to half of the nation's electricity needs. The government's strategic priority is to significantly increase its green capacities from 1.4 GW in 2024 to between 4 and 5 GW by 2030.

Next Steps

Following the tender's failure, NERC has indicated that the decision on whether to announce a new tender rests with the government. The tender committee, comprising representatives from NERC, the Ministry of Energy, the Competition Council, the Lithuanian Energy Agency, Vilnius University, and Kaunas University of Technology, will propose that NERC formally deem the tender as 'not having taken place.'