AB "Ignitis grupe" Signed Agreement to Acquire Solar Projects in Latvia

Source: www.gulfoilandgas.com 12/29/2022, Location: Not categorized

AB “Ignitis grupe” (hereinafter – the Group) informs that, after the approval of the Group’s Management Board, on 29 December the Group’s subsidiary UAB “Ignitis renewables” signed a conditional agreement to acquire 100% shares of a Latvian company which is developing solar projects in Latvia (hereinafter – the Agreement).

Targeted total capacity of the projects under development will reach up to 300 MWp. The projects are in development with estimated start of construction in 2024 and commercial operation date in 2025. The completed projects will operate under market conditions.

Total preliminary investments amount up to EUR 213 million, which includes the project acquisition price and other CAPEX. The payment of the acquisition price depends on achievement of development milestones established in the Agreement. It must be noted that the estimated total return on equity of the project is equal to the levels of similar projects communicated earlier. The expected return is in line with our target return range, i.e., high single-digit to low double-digit on a levered equity basis.

The Group reminds that the objective of Ignitis Group companies to consistently increase Green Generation portfolio and reach 4 GW of installed capacity by 2030 is set out in the Ignitis Group strategy (link). Thus, implementation of agreements contributes to the implementation of strategic objectives.

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