Ignitis Group, one of the largest utilities and renewable energy companies in the Baltic, has established a partnership with Ocean Winds (OW), the newly-formed joint venture between Engie and EDP Renováveis (EDPR), to develop offshore wind projects in Lithuania
The Lithuanian utility said the partnership with one of the largest offshore windfarm developers in the world will enable it to gain experience of offshore wind projects in other countries, which it will use to develop offshore wind in Lithuania. Ignitis will also play an as yet unspecified role in developing an offshore windfarm in the UK, taking a 5% stake in the Moray West offshore windfarm.
The partnership with OW will also bring foreign investment to the Lithuanian offshore wind sector, potentially exceeding €700M (US$832M).
Together with OW, Ignitis plans to participate in the first auctions for offshore wind in Lithuania, which are expected to take place in 2023.
Ignitis Group chairman and chief executive Darius Maikštėnas said, “The strong interest we received from European wind energy leaders in opportunities for co-operation indicated that we are on the right track and that the Baltic States will be leaders in renewable energy in the future.
“We plan to implement a strategic partnership with OW via a two-stage partnership process. Ignitis will initially gain valuable expertise by participating in a new offshore wind development project as a minority partner and will then participate in auctions for the development of specific projects in the Baltic.”
If the partners jointly develop a planned offshore windfarm in Lithuania, the capacity of which is expected to reach about 700 MW, Ignitis Group will own 51% and OW 49% of the shares.”
Mr Maikštėnas said, “In our updated long-term corporate strategy, which was presented in June this year, Ignitis set out a plan to build 4 GW of green generation capacity by 2030. “Offshore wind projects will contribute a significant part of this capacity.”
Mr Maikštėnas said the group’s corporate strategy is also aligned with the targets set out in Lithuania’s National Energy Independence Strategy. This includes a goal that, by 2030, windfarms will provide 50% of the country’s electricity.
OW chief executive Spyridon Martinis said the partnership with Ignitis Group will make a substantial contribution to the JV’s business plan and growth strategy for new markets.