Ignitis Group, which is growing green generation capacities, has approved the consolidation of renewable energy companies

10 June 2021
 Ignitis Group, which is growing green generation capacities, has approved the consolidation of renewable energy companies

To ensure further focused and sustainable development of green generation capacities and effective utilisation of competencies of the area, the Management Board of an international energy company Ignitis Group has approved the consolidation project of renewable energy companies of the Group. After its implementation, Ignitis Renewables would be responsible for implementation of onshore and offshore wind, solar, waste and biofuel energy projects.

After receiving all the necessary consents, the shares of Kauno Kogeneracinė Jėgainė, Vilniaus Kogeneracinė Jėgainė and Tuuleenergia would be disposed to Ignitis Renewables. Ignitis Gamyba would remain responsible for the capacities of the hydro energy segment.

Currently, the total installed green generation capacity of Ignitis Group reaches 1.12 GW, and 0.23 GW of capacities are under development.

“The decision to consolidate the renewable energy activities is a step consistent to the implementation of Ignitis Group’s strategy. This change will allow for a more effective utilisation of available competences while developing green generation capacities and aiming for the set goals to reach 4 GW of installed capacity by 2030”, says Darius Maikštėnas, CEO and Management Board Chair at Ignitis Group.

The development of green generation capacities set out in the Group’s strategy will also contribute to the goal provided in the National Energy Independence Strategy to generate 45% of electricity consumed nation-wide to be generated by renewable resources by 2030. 

Consolidation of companies and their specialists will also allow for a more effective utilisation of accumulated experience and competences in developing current and future renewable energy projects, attracting new talents as well as strengthening financial capacity of Ignitis Renewables. It is estimated that after the consolidation of the companies, the value of assets managed by Ignitis Renewables would reach almost EUR 750 million.

Also, the aim of the reorganisation is to 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.