On the updated schedule for the completion of the construction of wind parks developed by UAB “Atsinaujinančios Energetikos Investicijos”
On 11 August 2022, the closed-end investment company UAB “Atsinaujinančios Energetikos Investicijos” B (hereinafter referred to as the Company) received from the wind turbine manufacturer and contractor General Electric Renewables GmbH an indicative updated schedule for the completion of the construction of the wind parks being developed by Žaliosios Investicijos UAB, in which 25% of the shares are held by the Company. The schedule has been adjusted taking into account the Initial Results of Root Cause Analysis Report (hereinafter referred to as the Initial Findings) following an investigation into an incident on 11 March 2022, in which one of the wind turbines fell during testing and was damaged. General Electric Renewables GmbH, in light of the Initial Findings, has decided to carry out additional works on all the wind parks being developed by Žaliosios Investicijos UAB, which has led to a consequent postponement of the completion of the construction works on all the wind parks in question. Currently, according to the indications provided by General Electric Renewables GmbH, the Company’s management expects the Anykščių Vėjas UAB wind park to start generating electricity by the end of Q4 2022, Rokvėja UAB by the end of Q1 2023 and Potentia Industriae UAB by the end of Q2 2023.
As of 1 July 2022, fixed-price, monthly-fixed-volume electricity price hedging derivatives (hereinafter referred to as the Price Hedging Agreement) entered into force for approximately 50% production for Anykščių Vėjas UAB and Potentia Industriae UAB wind parks. The wind parks under construction by these companies do not yet produce electricity nor generate revenue to cover the unplanned Price Hedging Agreement costs. The management of Žaliosios Investicijos UAB is currently evaluating various short-term options to balance the projects’ financial flows, including deferment of payments under the Price Hedging Agreements, obtaining payouts from the insurance company, obtaining reimbursements from General Electric Renewables GmbH, obtaining additional short-term financing from credit institutions, and other measures. The cash flow balancing requirement depends significantly on the level of electricity market prices in the upcoming year and the implementation of the indicative construction schedule. According to the preliminary estimate of the management of Žaliosios Investicijos UAB, it could amount to around EUR 20-40 million by the end of the construction of the wind parks.
Person authorised to provide additional information:
Tomas Milašauskas
Company Manager
