Lithuania. UAB VVP Investment
| Date of agreement: | 14 Dec 2023 |
|---|---|
| Country: | Lithuania |
| Customer: | UAB VVP Investment |
| Amount in EUR: | EUR 32 million |
| Maturity: | 12 years |
| NACE sector / loan type: | Electricity, gas, steam and hot water supply |
This loan contributes to climate change mitigation: 100%
Financing from NIB Environmental Bond proceeds
NEB-eligible share: 100%
NEB category: Renewable energy
Amount disbursed: EUR 32 million
Note: For loans in other currencies than EUR, the equivalent in EUR is based on the exchange rate effective for the disbursement. Read more about the NIB Environmental Bonds
Project
The loan has been provided to finance a 63 MW wind farm in the Mažeikiai region in northern Lithuania. The wind farm, consisting of 14 turbines, started commercial operations in August 2023.
The project has been developed by Ignitis Renewables, a subsidiary of renewables-focused integrated utility Ignitis Group. The Group has an ambitious target to grow its Green Generation capacity from 1.2 GW in 2022 to 4-5 GW in 2030. Ignitis Group has a SBTi approved target to become CO2 neutral by 2040-2050.
The Borrower, UAB „VVP Investment“, is an Ignitis Group controlled company established for developing and operating wind farm projects.
Fulfilment of NIB's mandate
Productivity:
The wind farm is a significant generation capacity addition in Lithuania, which taking into account the existence of balancing capacities like pumped hydro and grid batteries is especially beneficial to the energy generation mix.
As of 1 October 2023, the total installed capacity of wind power plants in Lithuania was 1,208 MW. This represented 51% of the total installed renewable energy capacity and 25% of the total installed capacity.
Environment:
Wind power is one of the most sustainable ways to produce electricity. Assuming that the produced renewable electricity replaces energy produced with an average carbon footprint in the European Union, the avoided greenhouse gas emissions associated with the project amount to 61,000 tonnes of CO2 per year.
Impact indicators in relation with the investments:
- Added wind energy generation, P90
- Added wind energy generation capacity
Sustainability summary
The project has received all of the necessary permits for development and construction. The wind parks are in line with the requirements for noise levels and flickering.
According to the developer’s initial assessments, the wind park does not pose a significant impact on birds and bats. Thorough monitoring is planned to take place after the operations has started.
