REG - Eesti Energia AS - Investment Decision of 75MW Wind Park in Lithuania
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Final Investment Decision of 75MW Wind Park in Lithuania
Eesti Energia Group's Supervisory Board has given consent to the final investment decision for the construction and commissioning of the 75MW Akmene wind park in Lithuania developed by Enefit Green AS, 100% subsidiary of Eesti Energia. As a result of the Supervisory Board's decision, relevant agreements have been signed between the 100% subsidiary part of the Enefit Green AS group, UAB "Vejo parkai", and the provider of wind turbines, General Electric. The wind farm balance of plant construction works will be performed by UAB Merko statyba, part of AS Merko Ehitus group, a Baltic leading construction company, which offers construction services in the fields of general construction and residential construction.
The investment decision will enable Eesti Energia Group to realize the growth plan of renewable electricity production. Akmene wind park shall include up to 14 wind turbines with nominal capacities of 5.3 and 5.5 MW. The total investment is about 85 million euros, from which the turbine agreement amounts to 66 million euros and the construction works to ca 19 million euros. The annual forecasted production of the wind power station is about 258 GWh which makes it the largest wind park in Eesti Energia Group. Eesti Energia Group's current annual renewable electricity production from wind and solar assets is around 1.1 TWh.
The wind park's commissiong is expected to take place by the end of 2023, while construction works by UAB Merko statyba are expected to be completed in the third quarter 2022. The revenue of the wind park is hedged through Power Purchase Agreement (PPA) for first five years of production at 80% through the co-operation of Eesti Energia's client services unit that has strong Baltic coverage. This has enabled Eesti Energia Group to find electricity consumers willing to buy the renewable energy of the to-be-constructed Akmene 75MW wind park.
Rasmus Noormägi
Head of Investor Relations and Treasury
Eesti Energia AS
Tel: +372 465 2885
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The information contained in this announcement does not constitute or form part of any offer for sale or subscription of or solicitation of any offer to buy or subscribe for any securities in the United States, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Under the U.S. Securities Act of 1933, as amended, securities may not be offered or sold in the United States absent registration or an exemption from registration. Eesti Energia AS does not intend to register any portion of any offering of securities in the United States or to conduct a public offering of any securities in the United States.
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