AB “Ignitis grupė” (hereinafter – the Group) informs that on 15 November 2021 its Management Board approved the conclusion of the conditional share purchase agreement (hereinafter – the Agreement) whereby its subsidiary UAB “Ignitis renewables” (hereinafter – Ignitis Renewables) will conclude the Agreement regarding the acquisition of 100% of the shares of the Polish companies developing a solar projects portfolio in Poland. The Agreement will be signed in the near future, the Group will not inform separately about its signing.
The total capacity of the solar projects portfolio in Poland is up to 80 MW. Currently, the projects are in various stages of development, their commercial operations date (COD) is estimated around 2022–2023. When completed, the projects will operate under a Contract for Difference (CfD) support scheme 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.
Estimated total investments amount to around EUR 50 million. The payment of the acquisition price depends on the achievement of development stages and the awarded CfD size, as established in the Agreement. It must be noted that 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.
The Group reminds that the objective to consistently increase Green Generation portfolio and reach 4 GW of installed Green Generation capacity by 2030 is set out in the strategy (link). Thus, implementation of agreements contributes to the implementation of strategic objectives.
For additional information please contact:
Head of Public Relations at Ignitis Group
Tel. +370 620 76076