Lithuania state-owned energy firm Ignitis Group has suggested postponing a planned 700-megawatt offshore wind farm in the Baltic Sea because of increasing construction expenses, deteriorating market conditions, and questions regarding financial viability.

The initiative carries an estimated price tag of approximately €3 billion. Independent Lithuanian news agency BNS reported that Ignitis Group and its green energy subsidiary intend to request timeline revisions from the Energy and Finance ministries, though they hope to preserve the possibility of resuming work if market circumstances get better.

Chief Executive Officer Darius Maikstenas stated that the country requires additional reliable green energy generation, such as offshore wind.

An evaluation by the National Audit Office revealed that building expenses increased by 27% since 2023, reaching €2.8 billion, while expected investment returns fell by 40%.

Between 2023 and 2025, Ignitis Renewables put €60.3 million into the undertaking, but the firm still lacks long-term power purchase contracts with large buyers, creating additional worries about commercial viability.

Three potential paths have been presented by the business: pausing the project, bringing in global partners alongside European financial backing, or moving ahead with building while accepting the danger of elevated electricity tariffs.

Commercial operations for the wind park were initially set for 2030, but the suggested postponement might delay that goal by as long as five years. Even with the doubt, Ignitis intends to press on with preliminary tasks, such as securing a building permit in 2027.

Questions about the financial sense of the project have also been raised by Lithuanian authorities. Former Energy Minister Zygimantas Vaiciunas labeled the initial development plan an error, and Prime Minister Mindaugas Sinkevicius stated he will not support state projects missing economic justification.

A separate auction for a different 700-megawatt offshore wind park also failed to draw adequate competition.