Lithuania's First Offshore Wind Farm Needs State Support to Survive

Lithuanian Energy Minister Darius Vaičiūnas confirmed to parliament's audit committee that Ignitis Group's 700-megawatt Curonian Nord offshore wind farm is not currently commercially viable. The project is valued at approximately €3 billion. The minister sees two possible solutions: a new competition with state support or seeking state aid approval from the European Commission.

Lithuanian Energy Minister Darius Vaičiūnas told parliament's audit committee that the country's first planned offshore wind farm, Curonian Nord, is not viable without state support. Ignitis Group submitted an analysis of the 700-megawatt project to the energy and finance ministries at the end of June, with a total estimated cost of approximately €3 billion.

Project Requires State Intervention

"Curonian Nord is not currently commercially viable," Vaičiūnas said to the audit committee. The minister also stressed the need for transparency in publishing the analysis: "This is not so much a matter of confidentiality as of transparency."

However, Ignitis Group head Darius Maikštėnas explained that the analysis will only be made public after the government has reviewed it and formed its position. According to him, the document must be released first through the stock exchange so all shareholders receive the information simultaneously; early disclosure would violate market abuse regulations.

Maikštėnas added that the Finance Ministry, which is the company's largest shareholder, requested a delay in publishing the analysis. The ministry's adviser Vaida Dumčiūtė confirmed that the document arrived on 29 June and time is needed to assess it and coordinate a joint position.

Two Paths Forward

Vaičiūnas described two possible avenues for developing offshore wind energy in Lithuania. The first option is to hold a new competition for building at least one offshore wind farm with state support, as the previous support scheme ended in 2025. The second path is to seek state aid approval from the European Commission specifically for the Curonian Nord project.

The minister noted that he has already discussed this option with the European Commission and the project could also receive support from EU structural funds. Poland has successfully used a similar approach. The new EU budget period for 2028-2034 could open additional opportunities.

Lost Ground

Vaičiūnas acknowledged that Lithuania was once ahead of Poland in developing offshore wind energy but has lost that lead. In his assessment, the first offshore wind farm near Palanga would already be operating today if the activities planned in 2017-2018 had been pursued consistently.

"My recommendation to future governments is to seek optimal solutions and avoid improvisation with strategic national projects," the minister said.