AB Ignitis grup Ab "Ignitis Grup " Made A Final Investment Decision Regarding A 110 Mw Expansion Project In Kruonis Pshp
18 April 2023 - 8:00AM
UK Regulatory
TIDMIGN
AB "Ignitis grup " (hereinafter -- the Group) informs that the
Management Board of the Group made a final investment decision
regarding the 5th unit (110 MW) of Kruonis Pumped Storage
Hydroelectric Power Plant (hereinafter -- Kruonis PSHP) and
approved the conclusion of the contract with a consortium of
companies, which include Voith Hydro GmbH and Co. KG (St. Pölten,
Austria) and Voith Hydro GmbH and Co. KG (Heidenheim, Germany),
that won the tender (hereinafter -- the Contract). The Management
Board also approved the conclusion of a contract with Fichtner GmbH
& Co. KG for FIDIC engineering and maintenance services.
The new unit, which is the object of the Contract, will have a
wider range in generation mode compared to the previously planned
unit, starting from 0 MW instead of 44 MW, and in pump mode it will
be able to draw as low as 59 MW, while the previously planned unit
had a minimum threshold of 77 MW. The wider operational range of
the new unit is especially relevant in the context of rapid
development of renewable energy sources as the demand for balancing
services is growing. The wider parameter range of Kruonis PSHP's
5th unit will significantly contribute towards the energy
independence of the region, help ensure the development of
renewable energy sources and the reliability of the energy system.
The maximum capacity of the unit to be acquired is 110 MW.
After updating the business plan, the planned investments into
all project-related activities are in the range of EUR 150
million.
The return on Kruonis PSHP's 5th unit will be in line with the
Group's target return range for such projects, i.e., high
single-digit to low double-digit on a levered equity basis.
After the 5th unit (110 MW) is installed, the capacity of
Kruonis PSHP will increase to 1,010 MW (from 900 MW, which is 4
units, 225 MW each). Kruonis PSHP's 5th unit is estimated to be
completed by the end of 2026.
It must be noted that the Commission for Coordination of
Protection of Objects of Importance to Ensuring National Security
has screened the consortium of companies that won the tender and
submitted a conclusion that the consortium and the planned
transactions comply with the interests of national security. The
contracts will be signed in the nearest future. The Group will not
issue a separate material event notice on the conclusion of
contracts.
For more information, please contact:
Art ras Ketlerius
Head of Corporate Communications at Ignitis Group
https://www.globenewswire.com/Tracker?data=HEtvSvj6a0jHA5xlUGNOoRN-zKOTWm3uUrctgrkkS9Y9FoPb5Cgd1idUxlzghLv9WAUwjVgZNAAhFmlrVnBthL8XIaQokLAgR2R_42rG1iXTga24rD7w7nJqipM52pPtH1ZyD3jMRqBneP-CkjpPebgDJP2voLtB1OfG2WSRipouo0YAByGCcLAPFKt7oyxVM_-SnuvQsHUaoOpR2BvV_VtkSWsLkg8VadKyjkqoydtuehWjNnJ4Ek_ISPUwFcscUV_PjUCr7dUE3-mdWzcl1lcjuPj3n1wUwDvbI0UoFWxoaYj3hxY1gU-HJHZ71wMJUV5p02220VArUjImBl0CoSubuRuvfTcpgAlKAcaw_5jFCQ9-uuElSU1_MMhinhhNyOIyC0Ayk2Yq0CzjuAyFaf9rz1XxUFComHhnIO6zkUnHA-63jv8YTK6OloLwm5Kv0aHy7oPQPFgGwWVoqr8fvkTPOX3LXDd5V44ndTJh2CAY4Lb_9WoN2bVxeF8kKbyrQKwFbLjL2YsRD9SuVHnWBg==
arturas.ketlerius@ignitis.lt
+370 620 76076
(END) Dow Jones Newswires
April 18, 2023 02:00 ET (06:00 GMT)
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