Ignitis to buy owner of 200-MW wind-solar project in Latvia
Wind and solar together. Author: Gerry Machen.
Lithuanian energy company Ignitis Grupe AB (VSE:IGN1L) said on Tuesday it has sealed a conditional deal to acquire a Latvian company developing a 200-MW hybrid wind-solar park project in its home country.
The name of the target company, the acquisition of which was approved by Ignitis’ management board earlier on Tuesday, was not disclosed.
Under the arrangement, Ignitis will make an investment of up to EUR 270 million (USD 267.1m), including the purchase of the project and other capital expenditure. The acquisition price is set to be paid after certain development milestones have been achieved.
The project under consideration is in the early stages of development and is expected to enter construction around 2025-2026. Commercial operations are intended to be launched in the 2027-2028 period, with the complex planned to operate under market conditions.
Ignitis estimates that the return on the investment will be in line with its target for a high single-digit to low double-digit return on a levered equity basis. The Lithuanian firm will carry out the deal in line with its goal to reach 4 GW of installed green generation capacity by 2030, it said.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.