Polish energy company Polenergia pulls out of Lithuania's second offshore wind tender
Polish energy company Polenergia pulls out of Lithuania's second offshore wind tender | Windpower Monthly
Polish power company Polenergia has announced it is ending its interest in competing in Lithuania's upcoming second offshore wind tender, citing concerns about the economic viability of the project.
The country’s second offshore wind auction is due to take place later this year and will award contracts for difference to winning bidders, with a maximum price for the energy produced by the successful project set at €107.18/MWh
Polenergia explained its decision was made “after analysing the economic viability” of the offshore wind project proposed in the Lithuanian auction. It had also analysed the maximum price set by Lithuania’s National Energy Regulatory Authority (NERC) for the tender, it stated.
Lithuania held its first ever offshore wind tender earlier this year.
A joint bid from Lithuanian state utility Ignitis Group and offshore developers Ocean Winds (itself a joint venture of France’s Engie and Portugal’s EDP Renewables) was declared the provisional winner to build a 700MW offshore wind farm in the country’s maritime region of the Baltic Sea. Polish state-owned PKN Orlen was the only other bidder.
Related Knowledge Center: ENERGY BASICS: wind
Decades of government support for the development of wind energy has resulted in lower costs and a rapidly growing share of electricity generated by wind turbines. Wind in 2019 accounted for 7.3 percent of electrical generation, surpassing for the first time hydropower at 7.0 percent.