Ignitis Renewables Terminated Agreement to Acquire Portfolio of Solar PV Projects Under Development in Poland

PVTIME – On February 21, AB “Ignitis grupė” (hereinafter – the Group) informs that its subsidiary UAB “Ignitis renewables” (hereinafter – Ignitis renewables) terminatined the conditional SPA agreement to acquire up to 170 MW portfolio of solar PV projects under development (Polish solar portfolio I) in Poland. The Group and Ignitis renewables will suffer no loss in respect of this transaction.

Ignitis renewables on 21 February terminated agreement with developer Sun Investment Group by mutual consent. The agreement terminated due to no projects being awarded CfD tariff in the last auctions.

Over the last six months we held agreement renegotiations with the developer. As no agreement regarding acceptable return level which would be in line with our target range (high single-digit to low double-digit return) was reached, the conditional SPA agreement was terminated.

Advance payments paid to the developer (around EUR 3.8 million) will be fully returned to Ignitis renewables, therefore, the Group will suffer no loss in respect of this transaction.

The Group informed about the possibility that transaction closing risk may materialize if no agreement is reached in the interim reports of H1 and 9 months of 2021.

The Group announced about the transaction with Sun Investment Group on 17 September 2020 (link).

The portfolio of Green Generation projects under construction and development currently is up to 1.4 GW, and the installed capacity is 1.2 GW.