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Thursday, 25.04.2024, 08:34
Ignitis Group to develop offshore wind farms with global energy leader Ocean Winds
In 2020, Engie and EDPR formed a joint
venture, OW, which aims to be among the top five offshore wind energy players
in the world.
Ignitis
Group started
the search for a strategic partner for the development of offshore wind farm
projects in Q1 2019. After initiating a search, the group established a
dialogue with European wind energy leaders and received initial interest from
more than 10 potential partners, and 7 participants submitted official
Expressions of Interest (EOIs).
Darius
Maikštėnas,
Chairman of the Board and CEO of Ignitis Group said: "The
strong interest we received from European wind energy leaders in the
opportunities for cooperation indicated that we are on the right track and that
we can see the Baltic States among leaders of renewable energy in the
future. We plan to implement a strategic partnership with OW, one of the
largest offshore wind farm developers in the world, through a two-stage
partnership process.
Ignitis
Group will
initially gain valuable expertise by participating in a new offshore wind farm
development project as a minority partner and then will participate in auctions
for the development of specific projects in the Baltic Sea. Offshore wind
technology is constantly evolving, and the Baltic Sea is considered one of the
most promising places for the development of this type of energy."
If the
partners jointly develop the planned offshore wind farm project in Lithuania,
the capacity of which is expected to reach about 700 MW, Ignitis Group will own
51%, and strategic partner OW 49% of shares. According to experts,
investment in a project of this size can reach up to EUR 1.5 bn. As a result of
this strategic partnership, the total amount of foreign investment in
Lithuanian offshore wind energy sector may exceed EUR 700 mln.
Darius
Maikštėnas, Chairman
of the Board and CEO of Ignitis Group, said: "In
the updated long-term corporate strategy, which was presented in June this
year, Ignitis Group is aiming to achieve 4 GW of installed green generation
capacity by 2030. Offshore wind projects will contribute a significant part of
this capacity. Ignitis Group’s corporate strategy is also
aligned with the targets of Lithuania’s National Energy Independence Strategy,
that by 2030 will see wind power plants produce 50% of the country’s
electricity.
The
strategic partnership with OW, one of the largest offshore wind farm developers
in the world will allow the Group to gain experience in offshore wind projects
in other countries, which will be used to develop offshore wind energy in
Lithuania.”
Ignitis
Group will be
a minority partner in the development of the Moray West wind
farm on the East coast of Great Britain, with Ignitis Group owning
5% of shares. It is estimated that Ignitis Group will invest
approximately ten times more in offshore wind farms in Lithuania than in
the Moray West project.
Spyridon
Martinis, CEO of
OW, said: "We are proud to announce our strategic partnership with Ignitis
Group that will make a substantial contribution to our business plan
and growth strategy for new markets adding 700 MW to our portfolio to be
developed in Lithuania. At the same time this will improve our cooperation with
key market players in geographies where we have strong leadership sharing our
knowledge and experience to add value to our assets and shareholders.”
OW has
a strategic advantage and is well-positioned to play a leading role in
the offshore market. EDPR and ENGIE are combining their offshore wind
assets and project pipeline in OW, starting with a total of 1.5 GW under
construction and 4 GW under development, with the target of reaching 5 to 7 GW
of projects in operation or under construction and 5 to 10 GW in the
advanced development stages by 2025. OW primarily targets markets in
Europe, the United States and selected geographies in
Asia, from where most of the growth is expected to come.
Ignitis
Group is one of the
largest international utilities and renewable energy companies in the Baltic
region. Its core business activities are operating electricity and gas
distribution networks, as well as expanding green generation portfolio. The
Group also manages strategically important flexible generation resources and
provides customers and solutions services, such as supply of electricity and
gas, solar, e-mobility, energy efficiency and other innovative energy smart
platforms for households and businesses. Ignitis group operates in its
home markets – Lithuania, Latvia, Estonia, Poland and Finland – as well as
evaluates opportunities in other countries on energy transition path.
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