Implementation of the first offshore wind farm project in the Baltic Sea - Curonian Nord

A strategic energy independence project that is important to Lithuania – the first offshore wind farm, Curonian Nord, in the Baltic Sea – is stalling: costs are rising and the projected return is falling. This became clear after an audit conducted by the National Audit Office upon the assignment of the Seimas, the results of which will be presented today by Auditor General Irena Segalovičienė at the plenary session of the Seimas.

The Auditor General stresses that the implementation of the project is possible, but it requires urgent changes. According to her, the project implementation model that has been followed so far is risky and does not comply with the provisions of important legal acts. Therefore, the National Audit Office recommends analysing the internal and external factors related to the implementation of the project, setting realistic implementation deadlines based on this analysis, and immediately making specific decisions about the future of the project.

"We see that over two years, the planned cost of the project has increased by 27% to EUR 2.8 billion, while the projected return has decreased by about 40%. This means that the economic viability of the project is on the line. Therefore, not only the company itself, but also the state must be very clear about whether such a return is appropriate and what we are going to do next," pointed out Auditor General Ms Segalovičienė.

Less than a year and a half remains until the planned start of construction of offshore wind farms, but neither Offshore Wind Farm 1 UAB nor Ignitis Renewables UAB, which is actually implementing the project, have yet concluded long-term agreements or signed memoranda of understanding with potential electricity buyers, under which consumers would commit to purchasing electricity. These agreements would ensure long-term income, enabling the project to repay its loans and recoup its investments. It is important to note that Ignitis Renewables UAB has already spent EUR 60.3 million on the project between 2023 and 2025.

To objectively assess the feasibility of the goal set out in the National Energy Independence Strategy to build offshore wind farms by 2030, Ignitis Renewables UAB has undertaken to implement the National Audit Office's recommendation by 30 June 2026, namely to analyse the project and submit implementation scenarios to the Ministries of Energy and Finance. The state must decide immediately whether the current risk is acceptable and what the new path for the project will be.

Also, to properly assess the compliance of tender participants with the tender conditions for the use of maritime territory for the development and operation of power plants in the future, the National Audit Office recommended that the National Energy Regulatory Council (VERT) include in the tender conditions an obligation for participants to submit all relevant documents and to inform about any significant changes in the conditions during the tender. In addition, the VERT must conduct an inspection of Offshore Wind Farm 1 UAB by the end of 2026 and assess whether the company is complying with the conditions set out in the Law on Renewable Energy Sources.