Ignitis to buy 160 MW of early-development wind projects in Latvia

Lithuanian utility Ignitis Group (VSE:IGN1L) has sealed conditional agreements for the acquisition of roughly 160 MW of wind projects under development in Latvia.

The specific portfolio consists of three wind projects that are set to be purchased for up to EUR 200 million (USD 235.8m), which corresponds to up to 10% of the total investment amount, Ignitis said on Friday. The Lithuanian utility plans to buy the companies holding the three projects through its subsidiary UAB Ignitis Renewables.

According to the agreement, the sellers will develop the schemes until they reach a shovel-ready status and secure all needed permits for the construction. Ignitis Renewables, meanwhile, is entitled to take part in the decision-making process related to the projects’ execution.

Being at the early development stages now, the wind farms are expected to achieve commercial operations in the 2025-2027 period. Their construction is planned to begin in 2024-2025. Once up and running, the power plants will operate under market conditions.

Ignitis Group noted that the acquisition will back its goal of having 4 GW of operational capacity by 2030.

(EUR 1.0 = USD 1.179)

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