LITGRID AB Approves Key Renewable Energy Agreement Decisions
Renewable Energy Agreement Approval by LITGRID AB Shareholders
The Extraordinary General Meeting of Shareholders of LITGRID AB saw significant decisions regarding their commitment to renewable energy. The meeting focused on a vital agreement aimed at fostering sustainability and ensuring a robust energy supply for the future.
Details of the Renewable Power Purchase Agreement
One of the primary decisions was the approval of a baseload renewable power purchase agreement with UAB “Ignitis”. This strategic partnership represents a major step forward in LITGRID AB's sustainability initiatives.
Key Parties Involved
The agreement involves LITGRID AB, a public limited liability company established in Lithuania, and UAB “Ignitis”, another key player in the energy sector. This collaboration is not just a business deal; it symbolizes a united front towards a greener future.
Agreement Highlights
The agreement outlines the supply of up to 160 GWh of electricity annually from renewable sources. It sets a fixed price for the duration of the contract, which spans from January 2026 to December 2032.
Financial Aspects and Pricing Structure
The total value of the agreement is approximately EUR 82,294,488, highlighting the substantial financial commitment towards sustainable energy solutions. Pricing is established at a rate of EUR 74.5 per MWh, ensuring predictable costs for electricity sourced from renewable means.
Payment Terms
Payments are structured to occur monthly, which enables a smooth cash flow for both parties. Suppliers will submit monthly invoices, ensuring transparency in operations and facilitating timely payments.
Inflation Adjustments
In an innovative approach, the agreement includes provisions for adjusting prices in response to inflation or deflation. This ensures that the contract remains fair and economically viable throughout its duration, even in changing economic conditions.
Guarantees and Security Measures
To ensure performance, the supplier must provide an irrevocable bank guarantee from a financially stable bank, indicating the seriousness of their commitment.
Future Changes and Flexibility
LITGRID AB also empowered its Chief Executive Officer to make necessary adjustments to the agreement's price, reflecting market changes and maintaining its competitiveness without needing board approval for each minor change.
Contact Information for Further Inquiries
For those seeking further insights into this agreement or LITGRID AB's initiatives, Jurga Eivait? is the Communications Project Manager and is available at +370 613 19977 or via email at jurga.eivaite@litgrid.eu.
Frequently Asked Questions
What was the main outcome of the meeting?
The main outcome was the approval of a renewable power purchase agreement with UAB “Ignitis”, crucial for LITGRID AB's energy strategy.
How long is the agreement valid?
The agreement is valid for seven years, from January 2026 to December 2032.
What is the price structure of the power purchase agreement?
The fixed price is set at EUR 74.5 per MWh, totaling approximately EUR 82,294,488 over its duration.
Is there a provision for price changes?
Yes, adjustments can be made based on inflation or deflation rates, keeping the agreement aligned with economic conditions.
Whom can I contact for more information?
Jurga Eivait?, the Communications Project Manager, is available at +370 613 19977 for additional inquiries.
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