Ignitis will supply Litgrid electricity for 7 years for a fixed price

An energy solutions company Ignitis and the Lithuanian electricity distribution system operator Litgrid signed a power purchase agreement (PPA) worth EUR 82.3 million (excluding VAT). The agreement was concluded on 19 June and will take effect starting from January 2026. Under the agreement, Litgrid will buy up to 160 GWh of electricity generated from renewable energy sources per year from Ignitis for a fixed and competitive price of EUR 74.5 per megawatt-hour.

“This major agreement with market experts strengthens our position in the market and proves that we have developed a competitive portfolio of green capacities, which in this case allows us to offer both the lowest electricity prices among suppliers and long-term fixed prices. Such agreements allow to reduce cost fluctuations for customers, optimise energy prices and secure the supply of green electricity for their business needs,” says Haroldas Nausėda, Head of B2B Customers and Development.

Under the agreement, electricity will be supplied from green power plants owned by Ignitis Group. Energy will be supplied while following the latest market standards, i.e., 4.5 MWh every 15 minutes.

“Electricity transmission processes results in technological losses, which must be compensated by Litgrid. We compensate these losses by purchasing electricity on the market. The power purchase agreement allows us to use more green electricity and, as a result, achieve the established greenhouse gas emissions’ reduction goals. The long-term supply will also help us manage financial risks related to electricity price fluctuations. This agreement will cover about a third of our total technological losses,” says Donatas Matelionis, Head of Power System Operations at Litgrid.

Important sign of market maturity

Lithuanian energy market is already capable of offering solutions that ensure price stability, even in the long term. Major markets participants in Western Europe often choose long-term agreements such as this one.

In its strategy, Ignitis Group aims to reach 4–5 gigawatts (GW) of installed capacity by 2030 and to create a 100% green energy ecosystem for current and future generations.