Ignitis Group, a major player in the Lithuanian energy sector, has confirmed the continuation of its Curonian Nord offshore wind project despite growing uncertainties surrounding the energy market. The group has already invested EUR 50 million in the development of the project. Of these funds, EUR 20 million have been allocated to development fees, while EUR 30 million have been dedicated to environmental impact studies, as well as wind speed measurements, meteorological conditions, and seabed surveys. These expenditures are considered flexible and can be reused for future projects without time constraints.
The Curonian Nord project will be Lithuania’s first offshore wind farm. However, Ignitis Group has specified that delays may occur regarding the commercial operation date of the project, which is currently expected to be completed by 2027. These potential delays are related to uncertainty surrounding the demand for hydrogen electrolysis and the completion of the interconnection with Germany, a key factor for ensuring the sustainability of power purchase agreements and securing long-term financing.
The group emphasized that the final investment decision for the project will be made after the completion of development work and obtaining the construction permit, expected by 2027. This timeline, however, may be adjusted based on the evolution of the energy market and regional energy storage or interconnection needs.
Investments and project financing
Ignitis Group has already committed a significant portion of its budget to preliminary studies, including a series of technical and environmental evaluations essential for the project’s success. The planned costs for these stages include wind measurements and seabed studies, which will also have future applications in other offshore projects.
The completion of this project relies on securing financing suited to market conditions, as well as stabilizing both local and international energy policies. The dependence on electrolysis projects for hydrogen production could modify the initial strategy if demand forecasts evolve. The group remains vigilant in response to energy market fluctuations and adjusts its projects in accordance with long-term outlooks.
Projections for the offshore wind project
Ignitis Group indicated that the final investment decision is expected after the development phase, once the construction permit is obtained. However, schedule adjustments may occur if delays are observed regarding hydrogen electrolysis demand or the completion of the interconnection with Germany. The group emphasized that access to these infrastructures is crucial for ensuring long-term energy supply continuity.
The group also noted that the flexibility of its approach is key to adapting to the requirements of financial partners and local authorities, and that it may adjust its financing model based on evolving geopolitical and economic conditions.
