KELME ONSHORE WIND GREEN ENERGY LOAN

Promoteur – Intermédiaire Financier

AB IGNITIS GRUPE

Lieu

• Lituanie

Description

The project involves the design, construction and operation of a new onshore wind farm in Kelme County, western Lithuania. It will have a total installed capacity of approximately 300 MW and will be developed in two adjacent phases. Phase 1 will deliver around 105 MW, while Phase 2 will add approximately 195 MW. The scope also includes ancillary infrastructure, such as the grid connection.

Additionality and Impact

The project is in line with the InvestEU objective of the development of the energy sector in accordance with the Energy Union priorities. It concerns the development and operation of an onshore wind farm in Lithuania. It will support the 2030 targets set out in the National Energy and Climate Plan of Lithuania.

The financing of this project also contributes to Bank's lending priority objectives on Energy (Renewable Energy), Climate Action (transversal) as well as Economic and Social Cohesion (transversal).

As the project will produce electricity from low carbon sources, it will address the market failure of negative climate and environmental externalities, through the reduction of carbon emissions and air pollution (compared to fossil-fuel generation).

The project is expected to rely on revenues from the wholesale market (through unsubsidised commercial power purchase agreements or day ahead market), thereby the project improves market efficiency and competition.

In terms of project results, the project is expected to have a positive economic rate of return, considering the economic value of the electricity generated. Therefore, the project is expected to deliver a positive broader social benefit by generating clean and renewable electricity at a cost reasonably below the alternatives in Lithuania. On project quality, the level of promoter's governance and risk management capability after mitigation measures is deemed to be good.

The Bank's contribution will be most visible on the financial contribution side by accelerating the fundraising process and crowding in other financiers. In addition, the Bank's long-term funding will enable the promoter to enhance their financial structure in line with the long economic lifetime of the assets to be financed. The Bank provides expertise in structuring and lending to renewable energy projects, applying standard and well tested project finance principles. This will improve the structuring of the operation through close co-operation with the promoter and the commercial lenders. The project would not have been carried out (to the same extent) by the EIB without the InvestEU support.

Objectifs

The aim is to support Lithuania’s 2030 decarbonisation targets as outlined in the National Energy and Climate Plan. Located in a Cohesion priority region, the project qualifies under Article 309(a) for developing less-developed regions and Article 309(c) for projects of common interest.

Secteur(s)

• Énergie - Production et distribution d'électricité, de gaz, de vapeur et d'air conditionné

Montant BEI envisagé (montant approximatif)

EUR 320 million

Coût total (montant approximatif)

EUR 561 million

Aspects environnementaux

Wind farms fall under Annex II of the EIA-Directive (2011/92/EU), requiring the competent authorities to determine whether an EIA process is required. Phase I has been screened out. Phase II has been screened in with the full EIA approved by the Competent Authority. Since the transmission line is underground, it was not subject to an EIA process. During appraisal, the Bank services will review the EIA study and process, the authorization procedure, including screening decisions, project descriptions, associated infrastructure as well as terms and conditions of the environmental and building permits.

Passation des marchés

By the Commission Implementing Decision (EU) 2020/1500, Directive 2014/25/EU on public procurement shall not apply to contracts awarded by contracting entities and intended to enable the production and wholesale of electricity produced from conventional sources and from renewable sources except production and wholesale of electricity from renewable sources subject to the first and second support scheme, to be carried out in Lithuania. Given that, the project does not benefit from either support scheme, therefore the exemption applies, and the promoter may follow private procurement procedures.

Statut

Signé - 22/10/2025