Ignitis Group is expanding its Green Generation portfolio in Poland

• Ignitis Renewables will conclude a conditional agreement to acquire 100% of the shares of the Polish companies that are developing solar projects portfolio with a total capacity of up to 80 MW
• Estimated total investments amount to around EUR 50 million

International energy company Ignitis Group is expanding its operations in Poland, where it will acquire companies developing solar projects portfolio.

With the approval of the Management Board of Ignitis Group, Ignitis Renewables in the near future will conclude a conditional agreement to acquire 100% of the shares of the Polish companies that are developing solar projects portfolio in Poland. Estimated total investments amount to around EUR 50 million.

“Poland is one of the priority markets of the Group, where we plan a consistent expansion and are constantly looking for attractive Green Generation projects that have potential. The investment into solar power plants developed in Poland will allow us to keep increasing Green Generation capacity and reach 4 GW of installed Green Generation capacity by 2030 set out in the strategy of the Group”, said Darius Maikštėnas, CEO of Ignitis Group.

The projects to be acquired currently are in various stages of development, their commercial operations date (COD) is estimated around 2022–2023. The projects will operate under a Contract for Difference (CfD) awarded by Polish regulator or long-term Power Purchase Agreements (PPA).

Transaction closing will be subject to the performance of the conditions provided in the agreement, including the obligation of the selling party to develop, construct, secure CfD or PPA and prepare the solar power plants for COD. The payment of the acquisition price will depend on the achievement of development stages and the awarded CfD size, as established in the agreement.

An envisaged total return on equity of the acquired portfolio is in line with the Group’s target return range for such projects, which is high single-digit to, low double-digit.

About Ignitis Group

Ignitis Group is a leading utility and renewable energy group in the Baltic region. Our core business is focused on operating electricity distribution Network and managing and developing Green Generation portfolio. We also manage strategically important Flexible Generation assets and provide Customers & Solutions services, including the supply of electricity and gas, solar, e-mobility, improved energy efficiency and innovative energy solutions for households and businesses.