Lithuanian company Ignitis Group is entering the renewable energy market in Latvia with the acquisitions of three unnamed wind farms with a combined capacity of 160MW.
The projects are currently in early stage development, with construction to be initiated around 2024–2025.
Commercial operations are estimated around 2025–2027.
The total preliminary sum of investments amounts up to €200m and the acquisition price does not exceed 10% of the total amount.
The payment of the acquisition price depends on achievement of development stages established in the agreements.
Ignitis Renewables concluded conditional agreements regarding the acquisition of 100% of shares of three Latvian companies that are developing the wind farms.
The 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.
Ignitis Renewables will participate in the decision-making process, and, after developers receive construction permits, will survey for contractors for the construction of the turbines and performance of construction works.
Ignitis Group chief executive Darius Maikstenas said: “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.”