Ignitis Group, a leading energy company, has recently made a significant move by signing an agreement to acquire a substantial onshore wind development project in Lithuania. The project, which has a capacity of up to 300MW, marks a promising step towards advancing renewable energy in the region.
In a conditional sale and purchase agreement, Ignitis Group and its subsidiary, Ignitis Renewables, have acquired 100% of the shares in two companies responsible for developing an onshore wind farm in the Kelmė district. The acquisition entails a substantial investment of approximately €550 million, covering both the acquisition price and construction costs.
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The wind farm project is progressing steadily, with the first phase already entering the construction stage and the second phase in an advanced development stage. With a projected completion date set for 2025, the site will commence commercial operations under market conditions, contributing to Lithuania's renewable energy goals.
Following the closure of the transaction, Ignitis Renewables will assume responsibility for overseeing the construction of the project. Their expertise and experience in the renewable energy sector will undoubtedly contribute to the successful implementation of this ambitious venture.
The transaction is expected to be finalized by the fourth quarter of 2023, signaling a significant milestone for Ignitis Group and its commitment to sustainable energy solutions. Importantly, this potential acquisition will not impact Ignitis Group's Adjusted EBITDA guidance, demonstrating their prudent approach to financial management.
In response to the exciting development, an Ignitis Group spokesperson expressed optimism, stating, “This acquisition aligns with our strategic objective of expanding our renewable energy portfolio and contributing to Lithuania's renewable energy targets. We are committed to driving the energy transition and delivering sustainable solutions for a greener future.”
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With renewable energy playing an increasingly vital role in combating climate change, Ignitis Group's acquisition of this onshore wind development project serves as a testament to their dedication to a cleaner and more sustainable energy landscape. As the project progresses and Lithuania takes further steps towards achieving its renewable energy goals, the country's energy sector and its residents can look forward to a greener and more environmentally friendly future.
