The consolidation project of renewable energy companies was approved

The Management Board of AB “Ignitis grupė” approved the consolidation project of renewable energy companies

AB “Ignitis grupė” (hereinafter – the Company) informs that on 10 June 2021 the Company’s Management Board approved the initiation of the consolidation project of renewable energy companies (hereinafter – Project) of the Company’s group of companies (hereinafter – Ignitis Group), except for AB “Ignitis gamyba”.

The project proposed to consolidate the operating and under-development wind energy (onshore and offshore), solar energy, waste and biofuel projects and competences of Ignitis Group in a single entity while directing their further development and to choose UAB “Ignitis renewables” (hereinafter – Ignitis Renewables), 100% of shares whereof is owned by the Company, for this objective, for such purpose. After receiving all the necessary consents and performing the arrangements, the shares of UAB Kauno kogeneracinė jėgainė, UAB Vilniaus kogeneracinė jėgainė and Tuuleenergia Osaühing would be disposed to Ignitis Renewables. Ignitis Renewables would also manage renewable energy projects’ companies which would be acquired and developed in the future.

After reorganisation, the hydro energy segment – Kaunas HPP and Kruonis PSHP – would remain under a separate legal entity – AB “Ignitis gamyba”.

After the implementation of the Project, the value of assets managed by Ignitis Renewables would reach almost EUR 750 million.

The implementation of the Project complies with the Ignitis Group’s approved by the Supervisory Board of the Company on 19 June 2020, one of the priorities set out whereof is focused, sustainable and profitable green generation development in the region.

The consolidation of renewable energy businesses of Ignitis Group will allow to ensure a more competitive, flexible and effective implementation of green generation projects, strengthen the financial capacity of Ignitis Renewables as well as grow and broaden the competences of the area.

Also, the aim of the Project is to prepare for systemic performance of asset rotation set out in the Group’s Strategic 2021–2024 by selling a portion, up to 49%, of shares of completed generation capacity projects in order to recycle capital and capture premium.

The Company will inform about further decisions related to the consolidation of the companies according to the procedure set out in legal acts.

For more information please contact:

Lukas Zadarackas

Public Relations Manager at Ignitis Group