24 C
Rīga
Sunday, June 16, 2024
No menu items!
HomeLithuaniaLithuania govt: EUR 20 mln from Ignitis Group for wind farm to...

Lithuania govt: EUR 20 mln from Ignitis Group for wind farm to be used to repay state debt

Twenty million euros paid as a development fee by Ignitis Renewables, a subsidiary of Lithuania’s state-owned energy group Ignitis Grupe (Ignitis Group), after winning the tender for the development of the country’s first offshore wind farm in the Baltic Sea, will be used to repay the funds borrowed on behalf of the state.

The government approved a respective proposal of the Finance Ministry on Wednesday.

According to the ministry, Ignitis Renewables transferred the 20-million-euro development fee in December and if this money were spent next year, it would increase public spending and the general government deficit.

The funds borrowed by the state were used to compensate households and businesses for electricity and gas prices. This year, 175 million euros has been used for this purpose and 423 million euros in 2022.

Earlier this year, Ignitis Grupe and its partner Ocean Winds won a tender to develop Lithuania’s first 700 MW offshore wind farm in the Baltic Sea without state aid, having offered 20 million euros as a development fee to the state. The wind farm is preliminary valued at 1.8 billion euros.

Source: BNS

(Reproduction of BNS information in mass media and other websites without written consent of BNS is prohibited.)

LEAVE A REPLY

Please enter your comment!
Please enter your name here

RELATED ARTICLES

Most Popular