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AB “Ignitis grupė” made a final investment decision regarding a 110 MW expansion project in Kruonis PSHP
AB “Ignitis grupė” (hereinafter – the Group) informs that the Management Board of the Group made a final investment decision regarding the 5th unit (110 MW) of Kruonis Pumped Storage Hydroelectric Power Plant (hereinafter – Kruonis PSHP) and approved the conclusion of the contract with a consortium of companies, which include Voith Hydro GmbH and Co. KG (St. Pölten, Austria) and Voith Hydro GmbH and Co. KG (Heidenheim, Germany), that won the tender (hereinafter – the Contract). The Management Board also approved the conclusion of a contract with Fichtner GmbH & Co. KG for FIDIC engineering and maintenance services.
The new unit, which is the object of the Contract, will have a wider range in generation mode compared to the previously planned unit, starting from 0 MW instead of 44 MW, and in pump mode it will be able to draw as low as 59 MW, while the previously planned unit had a minimum threshold of 77 MW. The wider operational range of the new unit is especially relevant in the context of rapid development of renewable energy sources as the demand for balancing services is growing. The wider parameter range of Kruonis PSHP’s 5th unit will significantly contribute towards the energy independence of the region, help ensure the development of renewable energy sources and the reliability of the energy system. The maximum capacity of the unit to be acquired is 110 MW.
After updating the business plan, the planned investments into all project-related activities are in the range of EUR 150 million.
The return on Kruonis PSHP’s 5th unit will be in line with the Group’s target return range for such projects, i.e., high single-digit to low double-digit on a levered equity basis.
After the 5th unit (110 MW) is installed, the capacity of Kruonis PSHP will increase to 1,010 MW (from 900 MW, which is 4 units, 225 MW each). Kruonis PSHP’s 5th unit is estimated to be completed by the end of 2026.
It must be noted that the Commission for Coordination of Protection of Objects of Importance to Ensuring National Security has screened the consortium of companies that won the tender and submitted a conclusion that the consortium and the planned transactions comply with the interests of national security. The contracts will be signed in the nearest future. The Group will not issue a separate material event notice on the conclusion of contracts.
For more information, please contact:
Artūras Ketlerius
Head of Corporate Communications at Ignitis Group
arturas.ketlerius@ignitis.lt
+370 620 76076
