Ignitis Group is entering Latvian market – acquires three wind farms under development

An international energy company Ignitis Group is entering the renewable energy market in Latvia and is acquiring three wind farms that are currently under development. These are the first Group’s Green Generation projects in Latvia.

On Thursday, with the approval of the Ignitis Group Management Board, the parent company’s subsidiary Ignitis Renewables concluded conditional agreements regarding the acquisition of 100% of shares of three Latvian companies that are developing the wind farm projects in Latvia. The total capacity of these projects, which are in the early stage of development, is approximately around 160 MW.

“Latvia to us is one of the markets of strategic importance, and the acquisition of these projects is the result of the Group’s strategy being implemented consistently. We have a target to expand the green generation portfolio to 4 GW by 2030, thus we will keep actively looking for the development opportunities across all Baltic states as well as Poland”, Darius Maikšt?nas, Ignitis Group CEO, has said.

The concluded agreements provide that the selling entities will have to develop the wind farm projects until the construction stage, and, after receiving construction permits, dispose the shares to Ignitis Renewables. It is the first time when Ignitis Group acquires Green Generation projects and the developers remain responsible for their further development. It must be noted that Ignitis Renewables will actively participate in the decision-making process, and, after developers receive construction permits, will survey for contractors for the construction of the wind turbines and performance of construction works.

It is estimated that the construction works of the wind farms should be initiated around 2024–2025, and COD is estimated around 2025–2027. 

The total preliminary sum of investments amounts up to EUR 200 million. The acquisition price of these objects does not exceed 10% of the total amount. The payment of the acquisition price depends on achievement of development stages established in the agreements.

After the projects are completed, they will operate under market conditions.