On the signed agreement to acquire wind and solar project in development in Latvia
AB “Ignitis grupė” (hereinafter – the Group) informs that, after the approval of the Group’s Management Board, on 6 September the Group’s subsidiary UAB “Ignitis renewables” signed a conditional agreement to acquire 100% shares of a Latvian company which is developing a wind and solar project in Latvia (hereinafter – the Agreement).
Targeted total capacity of the project under development is around 200 MW. The project is in the early stage of development with estimated start of construction in around 2025–2026 and commercial operation date in around 2027–2028. The completed project will operate under market conditions.
Total preliminary investments amount up to EUR 270 million, which includes the project acquisition price and other CAPEX. The payment of the acquisition price depends on achievement of development milestones established in the Agreement. It must be noted that the estimated total return on equity of the project is equal to the levels of similar projects communicated earlier. The expected return is in line with our target return range, i.e., high single-digit to low double-digit on a levered equity basis.
The Group reminds that the objective of Ignitis Group companies to consistently increase Green Generation portfolio and reach 4 GW of installed capacity by 2030 is set out in the Ignitis Group strategy (link). Thus, implementation of agreements contributes to the implementation of strategic objectives.
For more information please contact:
Head of Public Relations at Ignitis Group
+370 620 76076