An energy solutions company, Ignitis, has entered into a power purchase agreement (PPA) with the Lithuanian electricity distribution system operator, Litgrid. The deal is valued at EUR 82.3 million, excluding VAT. Signed on June 19, the agreement will commence in January 2026 and last for seven years.
Under this agreement, Litgrid will acquire up to 160 GWh of electricity annually from renewable sources provided by Ignitis at a fixed price of EUR 74.5 per megawatt-hour. Haroldas Nausėda, Head of B2B Customers and Development at Ignitis, stated that the agreement “strengthens our position in the market and proves that we have developed a competitive portfolio of green capacities.” He emphasized that such agreements help reduce cost fluctuations for customers and secure green electricity supply.
The electricity supplied under this contract will come from green power plants owned by Ignitis Group and adhere to market standards with a supply rate of 4.5 MWh every 15 minutes.
Donatas Matelionis, Head of Power System Operations at Litgrid, explained that technological losses occur during electricity transmission processes and must be compensated by purchasing electricity on the market. He noted that “the power purchase agreement allows us to use more green electricity” and helps manage financial risks related to price fluctuations while covering about one-third of their total technological losses.
This agreement marks an important sign of maturity in the Lithuanian energy market, which can now offer long-term price stability solutions similar to those in Western Europe. As part of its strategy, Ignitis Group aims to achieve an installed capacity of 4–5 gigawatts by 2030 and create a fully green energy ecosystem for future generations.
