Enefit Green opts out of FiT in favour of PPAs for Lithuanian wind farms

Estonia-based renewables firm Enefit Green AS (TAL:EGR1T) said on Tuesday that it has signed long-term power purchase agreements (PPAs) to offload most of the production from 99 MW of wind farms it has in Lithuania.

The new contracts are linked to the 60-MW Silute and the 39-MW Ciuteliai wind farms, which until now have been earning revenues under Lithuania’s feed-in-tariff (FiT) scheme. Silute has been receiving a fixed-price FiT payment of EUR 69.51 (USD 69.58) per MWh, while Ciuteliai has been selling power for EUR 86.89/MWh.

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Both wind farms will earn more than that under their fixed-price PPAs, which will support 60% of their power production, Enefit Green said without disclosing the new pricing terms. The average life of the PPAs is nine years.

The name of the off-take party was not disclosed.

The leftover wind energy production will be sold on merchant terms on Nord Pool day-ahead market, the company said.

The Ciuteliai and the Silute wind farms were to stop receiving FiT payments in April 2025 and July 2028, respectively. As explained by Enefit Green, Lithuania’s law allows power producers to give up renewable energy FiTs prematurely and switch to market terms.

The change for Ciuteliai and Silute is expected to come into effect by the end of the third quarter of 2022, the power producer added.

(EUR 1.0 = USD 1.001)