Ignitis Group energy project developments

Ignitis Group has undertaken several financial and strategic maneuvers regarding its energy portfolio in the Baltic region. The company successfully issued €300 million in green bonds, which were oversubscribed by 3.3 times, to finance long-term assets and operating expenses.

Simultaneously, the group is reassessing its large-scale infrastructure projects. It has requested that Lithuanian ministries postpone the implementation of the ‘Curonian Nord’ offshore wind farm due to changing circumstances. Further analysis indicates that the €3 billion, 700 MW offshore wind project faces a 27% increase in construction costs and a 40% decline in projected returns. The company is weighing options such as suspending development, seeking international partners, or proceeding at the expense of higher electricity tariffs.

In Estonia, the group’s subsidiary, Ignitis Eesti, is planning a potential 200 MW gas-fired power plant in the Tartu region. This €200 million project is intended to serve as a system restoration reserve for grid outages while potentially participating in the electricity market.