Construction, Ecology, Energy, EU – Baltic States, Good for Business, Investments, Lithuania

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 is a 50:50 offshore wind joint venture, owned and created by EDPR and ENGIE in 2020. Both companies believe that offshore wind energy is becoming an essential part of the global energy transition, leading to the sector’s rapid growth and increased competitiveness. That is why they have included all their existing and pipeline offshore portfolio in the new company.

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.