Latvenergo concludes the largest wind farm development deal in LithuaniaRiga, 2024-05-24 08:00 CEST --
Latvenergo AS has acquired 100% in the Telšiai project of Utilitas Wind, which will already enable the company to start wind power generation with a capacity of 124 megawatts (MW) in the first quarter of 2026. The construction of the wind farm will be managed by Utilitas Wind until completion. Installation of 20 Vestas 6.2 MW wind turbines is scheduled within the framework of the project, providing power generation that can ensure annual electricity consumption for more than 125,000 households. The implementation of the project is an important step in strengthening the competitive position in the Lithuanian market, as well as a factor in lowering the electricity price for customers in the Baltic states. For Latvenergo, this transaction is a significant breakthrough in the execution of the Group strategy.
In order to achieve dynamic and rapid advances towards the goals set out in the Latvenergo Group strategy, Latvenergo needs to build a diversified portfolio of renewable energy (RES) generation capacity across the entire domestic market – in Latvia, Lithuania and Estonia, as well as to implement geographic expansion beyond.
Latvenergo Group has significantly expanded its business in Lithuania in recent years, and Elektrum Lietuva is currently one of the leading Lithuanian electricity trading companies. In 2023, Latvenergo sold 30% of the total electricity sales of the company to customers in Lithuania – a 60% increase year-on-year. The number of Elektrum customers in Lithuania already exceeds 180,000 (an increase of 50,000 customers compared to 2022).
At the end of 2023, Latvenergo AS, together with the consultant PricewaterhouseCoopers SIA, carried out an assessment process of domestic wind project developers and wind projects developed by them in Latvia. As a result of the assessment, several merchants with highly developed wind projects in their portfolios were approached. Latvenergo AS Shareholders' acceptance for this project was received on 17 May 2024 at the Shareholders' Meeting of Latvenergo AS.
Within the framework of this project, the turbines will be manufactured, supplied and assembled by Vestas, the world’s leading wind turbine manufacturer, and the construction of the connection, access roads, cabling, turbine foundations and assembly area will be performed by Merko statyba UAB, with project management being provided by Utilitas Wind. The provisional construction costs of the wind farm are estimated at approximately EUR 200 million.
The overall strategic objective of Latvenergo AS provides for the promotion of the competitiveness and growth of climate-neutral Latvia and an increase in the value of Latvenergo Group in the Baltic market, as well as beyond, through the development and provision of goods and services in the energy and related business value chains in a sustainable, innovative, and economically sound manner and by effectively managing strategically important resources and infrastructure for the development and security of the country.
Additional information:
Jānis Irbe
Group Treasurer
Phone: +371 29 453 897
E-mail: investor.relations@latvenergo.lv
www.latvenergo.lv
About Latvenergo
Latvenergo Group is one of the leading energy suppliers in the Baltics operating in electricity and thermal energy generation and trade, natural gas trade and electricity distribution services. Latvenergo AS has been acknowledged as the most valuable company in Latvia for several times. International credit rating agency Moody's has assigned Latvenergo AS an investment-grade credit rating of Baa2/stable.
Latvenergo Group is comprised of the parent company Latvenergo AS (generation and trade of electricity and thermal energy, trade of natural gas) and subsidiaries - Sadales tīkls AS (electricity distribution), Elektrum Eesti OÜ (trade of electricity and natural gas in Estonia), Elektrum Lietuva UAB (trade of electricity and natural gas in Lithuania), Enerģijas publiskais tirgotājs AS (administration of mandatory electricity procurement process), Liepājas enerģija SIA (generation and trade of thermal energy in Liepaja, electricity generation) and Latvijas vēja parki SIA (development of wind parks in Latvia). All shares of Latvenergo AS are owned by the state and held by the Ministry of Economics of the Republic of Latvia.
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