KEYFACT Energy
Eesti Energia has signed an agreement with the Lithuanian wind energy company E energija, with which it will purchase all the green energy produced by the future wind farm within ten years. This is the largest such transaction in history in the Baltics.
The 68.9 MW wind farm of E energija Telšiai, which will be launched in 2022, produces 235 GWh of green electricity per year, which would cover the annual electricity consumption of nearly 80,000 households. In addition to household customers, Eesti Energia will start supplying wind energy to business customers in order to create better opportunities for companies to make their operations more environmentally friendly.
Never before has such a long-term and large-scale green energy purchase agreement been concluded in the Baltics. It was Eesti Energia's readiness to buy out the entire wind farm production within 10 years that was a key factor in financing the park. The largest green energy purchase agreement in the Baltics was made possible thanks to good cooperation with E Energia, General Electric and SEB.
Eesti Energia is the leading renewable energy developer in the region through its subsidiary Enefit Green, but cooperation and long-term power purchase agreements with other developers allow Margus Wals, a member of the company's board, to make an even greater contribution to becoming the leading emission reducer in Europe, increasing energy independence.
"As an international energy company, our task in every home market is to strive for smarter customer solutions and cleaner energy production," said Vals. "We want to do this in many ways, which is why we contribute as a developer and buyer of renewable energy in order to offer our customers even more clean energy. We are constantly looking for new ways to grow our green energy portfolio.”
Eesti Energia has a long-term experience of operating in Lithuania. Energy sales have been carried out there for more than 10 years, and the group's renewable energy company Enefit Green owns five wind farms there, and almost half of the company's annual wind electricity production comes from Lithuania.
“Our international brand Enefit has successfully grown its reputation in Lithuania and the company has an important advantage both in terms of price and the content of the offer. Locally produced electricity is of great value to people and we are happy to be able to offer it," Vals added.
The 68.9 MW wind farm to be built by E Energija is the largest in the country and is located in the Tryškiai region of western Lithuania and will start operating in 2022. The energy purchase agreement is valid until 2032. Eesti Energia buys all the production and certificates of origin of the wind farm.
"As an innovator, we are pleased to be at the forefront of renewable energy developers and to conclude the region's first such large green energy sales contract. By building the first subsidy-free wind farm in the Baltics, we will open the door to changes in the entire local energy system. We thank Eesti Energia for supporting our goals in these difficult times," said Gediminas Uloza, CEO of E energija.
According to Vilius Juzikis, Member of the Management Board of SEB Bank of Lithuania and Head of Corporate Banking, the common goal of the European Union countries to create a climate-neutral economy by 2050 requires a lot of work and a complete transition to renewable energy sources.
"In Lithuania's climatic conditions, wind energy is a widely available and fully competitive source of energy, which is why it must play an important role in achieving the common goals of the European Union and securing all the necessary electricity production for the country. Investments in wind energy are also important to support energy independence, respond to growing local energy demand and maintain competitive electricity prices for both local households and businesses. In the process of energy transformation that has begun, banks can play an important role in offering suitable financial solutions, which is why financing companies promoting the spread of clean energy is a priority for SEB Bank,” said Juzikis.
The wind farm is a collaborative project between GE and E energija, the first of which will supply thirteen 5.3MW onshore wind turbines, the largest of its kind.
In the Lithuanian business customer market, the company has been operating under the Enefit brand since 2007 and has achieved a strong position as both an electricity and gas seller, with a market share of almost 8%. The Lithuanian household electricity market will open to consumers on 1 January 2021, ie eight years later than the Estonian energy market. Eesti Energia started selling electricity to Lithuanian residential customers at the beginning of this year.
Eesti Energia's strategic goal is to offer an excellent customer experience with the help of digital solutions and to reach 1 million customers in the Baltic Sea region by 2024.
KeyFacts Energy: Renewable Energy news