The European Bank for Reconstruction and Development (EBRD) is bolstering Lithuania’s energy security and green transition with a significant loan to Ignitis Group. This loan is part of a €318 million financing package earmarked for the construction of the country’s largest onshore wind farm, the 314MW Kelmė wind farm in western Lithuania.
This wind farm is set to generate approximately 740GWh of zero-carbon electricity annually, enough to power around 250,000 households. This makes it the largest onshore wind development in the Baltic region. The financing package also includes contributions from the European Investment Bank, Swedbank, and the Nordic Investment Bank, underscoring a collaborative effort to support Lithuania’s renewable energy ambitions.
The EBRD’s involvement in this project is not an isolated incident. Since beginning operations in Lithuania, the EBRD has invested over €1.8 billion across 143 projects focused on sustainable infrastructure and the green transition. This includes supporting Ignitis Group’s previous investments in electricity distribution and e-mobility infrastructure across the region.
The new facility is a crucial step in Ignitis Group’s target of reaching 5GW of installed green generation capacity by 2030. It also aligns with Lithuania’s national energy goals and the broader EU climate objectives. As the largest electricity supplier in Lithuania and a key player in the Baltic energy market, Ignitis Group’s strategic direction is pivotal in shaping the region’s energy landscape.
The EBRD’s role as Ignitis Group’s second-largest shareholder since its 2020 IPO further underscores the bank’s commitment to driving sustainable energy projects in the region. This project could potentially set a precedent for similar initiatives in the Baltic region, encouraging other countries to invest in large-scale renewable energy projects.
Moreover, the Kelmė wind farm project could catalyze further investment in Lithuania’s energy sector, attracting more international financial institutions and investors. This could lead to a more diversified and resilient energy market, reducing dependence on fossil fuels and enhancing energy security.
However, the success of this project will depend on various factors, including regulatory support, grid integration, and community engagement. As Lithuania and the broader EU strive to meet their climate goals, projects like the Kelmė wind farm will be critical in demonstrating the feasibility and benefits of large-scale renewable energy investments.
In the words of EBRD President Odile Renaud-Basso, “This project is a testament to the power of international cooperation in driving the green transition. It’s not just about building wind farms; it’s about building a sustainable future for Lithuania and the Baltic region.”