BayernLB

Financing renewable energy projects in the Baltics

BayernLB structured and financed a Green Loan for the Lithuanian “E energija Telsiai wind park project” – the country’s first significant subsidy-free onshore wind farm project to date.

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The Federal Republic of Germany granted an ECA cover for the project.

The wind farm is located around 250 kilometres north west of Vilnius and is equipped with 13 of GE Renewable Energy’s 5.3MW Cypress onshore wind turbines. The total capacity of the wind park is 68.9 MW, which is expected to provide green electricity for the equivalent of approx. 78,300 homes in Lithuania.

E energija Telsiai wind park is expected to start operating in December 2021. The project is co-owned and co-sponsored by GE Energy Financial Services and E energija group. The project benefits from a long term PPA (Power Purchase Agreement) with Eesti Energia AS, an Estonian state-owned company.

E energija group has been playing an active role in the Baltic energy reform through wind and solar parks as well as biomass-based district heating projects aimed at cutting CO2 emissions and mitigating climate change. The group develops, builds and owns wind and solar projects and also constructs and operates biomass heat generating systems in Lithuania, Poland and Ukraine. It has a portfolio of 500 MW wind and solar projects under development.

Dr Christoph Fischer, Division Head Energy & Mobility at BayernLB, said: “L-Vejas, as the first significant subsidy free development in the Baltics, marks an important milestone in the Lithuanian renewable energy sector. We are delighted to support E energija group and GE with our financing and structuring capabilities.”

“We are thrilled to have attracted one of the leading German banks to Lithuania to finance our Telsiai wind farm project – this opens new frontiers of financing opportunities for our upcoming projects and will contribute to even greener future” adds Gediminas Uloza, CEO at E energija group.

Jon Stark, US/EU Renewables Commercial Leader, GE Energy Financial Services, said: “Our partnership with E energija group has created an opportunity to be part of the renewable energy story in the Baltic region. Through GE’s state-of-the-art onshore technology and innovative finance solution, we are supporting the development of one of the most efficient wind farms in Lithuania.”