The management board of Lithuanian company Ignitis Group has approved to consolidate the group’s clean power subsidiaries into a single entity under a new company called Ignitis Renewables.
The group will consolidate its wind, solar as well as waste and biofuel businesses and their competencies into the the new company, a 100% subsidiary of Ignitis Group.
After receiving all the necessary consents and performing the arrangements, the shares of UAB Kauno kogeneracine Jegaine, UAB Vilniaus Kogeneracine Jegaine and Tuuleenergia Osauhing will be disposed to Ignitis Renewables, which will also manage new renewable energy projects in development by these companies as well as acquired projects.
After reorganisation, the hydro energy segment, Kaunas HPP and Kruonis PSHP, will remain under a separate legal entity.
The value of assets managed by Ignitis Renewables are expected to total €750m.
The consolidation of the renewable energy businesses of Ignitis Group will allow to ensure a more competitive, flexible and effective implementation of green generation projects, strengthen the financial capacity of Ignitis Renewables as well as grow and broaden the competences of the area, said the group.
The move will also prepare for systemic performance of asset rotation set out in the group’s Strategic Plan 2021–2024 by selling a portion, up to 49%, of shares of completed generation capacity projects in order to recycle capital and capture premium.