Ignitis Group evaluates gas plant in Estonia and offshore wind delay

Ignitis Group is considering several strategic shifts in its Baltic energy portfolio. In Estonia, the company’s subsidiary, Ignitis Eesti, has applied to begin territory planning for a potential 200 MW gas-fired power plant in the Tartu region. The project, estimated to cost approximately €200 million, is intended primarily as a system restoration reserve to help restart the grid in the event of a major outage, though it could also participate in the electricity market to generate revenue.

Separately, Ignitis Group has proposed postponing its €3 billion, 700 MW offshore wind farm project in the Baltic Sea. This proposal follows a 27% increase in construction costs since 2023 and a 40% drop in projected investment returns. The company is discussing three scenarios with the Lithuanian Energy and Finance ministries: suspending development, seeking international partners and European funding, or proceeding with construction at the cost of higher electricity tariffs.